Psychology & Risk Management For Traders

on Wednesday, December 17, 2014
1.     I keep Blue Channels turned off while trading.
2.     I do not care about others opinions I care only about price and chart action.
3.     I do not try to predict, instead I trade in accordance with the chart.
4.     I am not trying to prove I am right I am trying to make money.
5.     I am not trading for ego gratification I am trading for money.
6.     I am not trying to be the genius who calls a top I am the trend follower who follows a trend all the way up until it ends.
7.     I admit freely to my losing trades along with my winning trades.
8.     I do not get emotionally attached to each price movement throughout the day.
9.     I have faith in my rules, methodology and system.
10.  I understand it that it is the market conditions and not me that creates profits.
1.     I never add to a losing position.
2.     I carefully control position sizing to limit risk based on volatility.
3.     I attempt to never lose more than 1% of my capital on any one trade.
4.     I trade smaller when volatility is high.
5.     I have stale stops and sale positions that do not trend in four days after entry.
6.     I quickly sell losing trades when my stop is hit.
7.     I sell stocks when they close in the bottom of the day’s range.
8.     I never expose more than 6% of my capital to possible loss at any one time.

9.     Risk is priority #1, profits are #2.


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