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My List of 20

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Every trader knows that they have to be their own therapist at times; after nearly a decade of trading, I subconsciously sometimes most of the time still feel like maybe I could have traded better or done some things differently to have captured more points. The truth is that there is no table, and the phrase suggests that the money is yours to begin with, POWERFULLY misleading and I believe dangerous to the psyche and trading account if a trader continues to believe that.

My list of 20 reasons not to let my emotions trump good logic.

  1. A back tested method that’s better than 50% win rate along with a a healthy win/loss ratio can and will grow an account size very quickly.
  2. After a trader back tests their method, the average amount of points it makes per trade should be the daily goal.
  3. Chasing for more points will lead to over trading, and only adds more exposure to risking previous profits.
  4. A trade that works should never be taken for granted, it needs to be managed well without any bias to direction. 
  5. There are an infinite amount of possible trades to take in any market, which is an infinite amount of opportunities to be exposed to risk.
  6. Limit exposure to risk by only taking trades within the trading method.
  7. Not every trade is going to work.
  8. Never risk more than 2% per trade.
  9. Never take profit for granted, easy come easy go.
  10. Document trade while in the trade.
  11. If the method is too complicated to remember, it will not be followed.
  12. If you have more than one type of trade, you have more than one trading method.
  13. Technical Analysis and a method is not the same thing.
  14. Your biggest winner will never be as big as your biggest loser.
  15. There are plenty of days to trade in a week, month, year.
  16. Use indicators to only indicate, not to trade with.
  17. Know how many points you should average in a  day, month, year (Back tested method)
  18. Trade with realistic expectations.
  19. Account size does matter.
  20. Take pride in following method, profits will follow. 

Read more at Trin Cafe


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