4/11/2023 0 Comments Newsbar taking way too much energyAfterall, profits are a function of Effort + Discipline, multiplied by Capital. when there is a setup, and always ensure your SL and TP are determined beforehand".Īlso, the rule of money management is an understated rule, to risk 1-2% max of one's account for each trade. The most difficult thing is to follow and execute the edge always, meaning sticking to it in times of losses", and one's "trading methods needs to allow you to hold onto your winners". While chatting with a trading friend today, i remarked that "an edge is easy to find. Beaten down but not dead, and attempting to rise from rock bottom. My equity curve looks like the chart of Nasdaq stocks from their dotcom peak, or financial companies from their peak till now. Many of them have blown up accounts before, and for some, it was a fortunate break that made them their first large profit, which launched their trading careers.įast forward to today - i've gained a preference for books written by real traders and psychology books. The author concludes that there is no holy grail to trading success, as the methods employed range from purely technical to purely fundamental, but there were many common denominators, such as a a driving desire to become successful traders, and having to overcome significant obstacles to reach their goal. If Bruce Kovner, Michael Marcus, Ed Seykota and Dan Zanger can do it, so can someone else out there, you may counter. Yes, imagine how many newcomers enter Forex with hopes of making 1,000% to 10,000% profits from a small stake. Then i stumbled onto Market Wizards by Jack Schwager, and was fascinated by the stories of these successful traders, some of whom have phenomenal records, that is only surpassed by the Forex signals and software that are hawked out there in the market. Alas, those were static charts, and all the knowledge picked up, could not be turned into profitable trading. Each book will show how a fixed indicator will give you an entry, and viola, within a short period, the trade turns profitable, and how to take profits. It was of course, a humbling experience, and quite psychologically damaging.Īll this while, i pursued my thirst for knowledge and voracious reading of books on trading, particularly technical analysis. I traded many instruments (stocks, forex, options and futures) without following a fixed method. I entered the world of trading over 2 years ago with a lack of the understanding of cutting losses fast and letting winners run, demand-supply, money management and expectancy ratio. What does it take to be the 5% who profit from the vast majority of 95% of traders? I continually ask myself this question daily and weekly, and how i can reach my goal of trading to financial freedom.
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