Trader's Thread 04 (Feb 12 - Jun 20)

Re: Trader's Thread 04 (Feb 12 - Jun 20)

Postby winston » Thu Jan 09, 2020 2:42 pm

Skin in the Game

by Vishal Khandelwal

Having skin in the game means being exposed (equally as other stakeholders) to both positive and negative consequences of an outcome which was made possible by your decisions/actions/approval.

Superficially, the concept of 'skin in the game' may look like a case for morality in human transactions but if you go deeper, you will find that it's a wonderful trick for improving our own decisions.

When you own 50 stocks and one goes to zero, your portfolio isn't going to move down by more than 2 percent (assuming you had equal allocation for each stock).

Which means you're not really bothered about a couple of bad decisions for it's not going to create meaningful damage to your net worth.

However, when you run a relatively concentrated portfolio of 10 stocks, you'd be more careful about choosing those stocks. Won't you?

Source: Seeking Alpha
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Trader's Thread 04 (Feb 12 - Jun 20)

Postby winston » Mon Jan 13, 2020 4:21 pm

Why you should become a “coffee shop trader”

Perhaps the best way to get started as a minimalist “coffee shop trader”, is to focus on the higher time frames, and more specifically the daily chart time frames.

Focusing on the higher time frames works to smooth out the price action of the market for you,


Source: Learn To Trade

https://www.learntotradethemarket.com/f ... ex-traders
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Trader's Thread 04 (Feb 12 - Jun 20)

Postby winston » Mon Jan 13, 2020 8:01 pm

The Minimalist Guide To Forex Trading & Life

By Nial Fuller

The role that having tons of “crap” on your charts plays as a contributor to your trading problems, is often overlooked.

I mentioned above that trader error is the main cause of losing money in the markets, not the particular trading method you use.

The next time you want to put an indicator on your chart ask “Do I really need this? Is this really going to help me?”. “DO I REALLY NEED THIS?”….We want to only trade with what we need …..

After you learn to trade with price action, understand that you don’t have to spend a lot of time analyzing the markets each day.


Source: Learn To Trade

https://www.learntotradethemarket.com/f ... al-markets
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Trader's Thread 04 (Feb 12 - Jun 20)

Postby winston » Mon Jan 13, 2020 8:15 pm

What Crocodiles Can Teach You About Trading

By Nial Fuller

By trading less… our aim is to make a nice large “meaty” size trade that sustains us until our next trade. Sure we may have a few losses along the way to our big prize, but the goal here remains clear; waiting on the sidelines (or the shores of the river like the crocodile) to pounce on our prey and cop a huge nourishing meal.

I may trade only 3 times per week or even less some weeks.

My own personal experience is that it’s much more lucrative to wait patiently for high-quality trade setups than it is to stay glued to your charts all day and night trying to trade everything you can find.

Crocs tend to have less “losing trades” or failed hunting attempts…because they don’t waste time or energy…they wait and wait and control themselves with precision until their prey almost walks into their mouth…then they feed.

Crocs “…learn quickly and adapt to changes in their situation. They particularly learn to avoid dangerous situations very quickly”.


Source: Learn To Trade

https://www.learntotradethemarket.com/f ... ex-trading
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Trader's Thread 04 (Feb 12 - Jun 20)

Postby winston » Tue Jan 14, 2020 8:24 am

The Trading Money Management ‘TRICK’ You’ve Never Heard Of

By Nial Fuller

Money management can be one of the most difficult aspects of trading for most traders. Thus, having a “prop” to fill in for your real money, like poker chips or Monopoly money, will add an element of reality to your trading that otherwise won’t be there.


Source: Learn To Trade

https://www.learntotradethemarket.com/f ... ment-trick
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Trader's Thread 04 (Feb 12 - Jun 20)

Postby winston » Tue Jan 14, 2020 9:41 am

Why I ‘Seriously’ Hate Day Trading

By Nial Fuller

As a trader, you NEED to understand how the higher time frame charts work and higher time frame price dynamics before you attempt trading the lower time frames.

A retail day-trader in today’s markets has a much tougher time trying to turn a profit than they did even about 10 years ago before all this high-frequency computer trading was so prevalent.

These high-frequency traders have what is essentially an “unfair” edge because they see the data that we see but a lot sooner.


Source: Learn To Trade

https://www.learntotradethemarket.com/f ... ay-trading
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Trader's Thread 04 (Feb 12 - Jun 20)

Postby winston » Wed Jan 15, 2020 10:24 am

How Long Do Good Trades Take To Play Out ?

by Nial Fuller

Despite what most people think, good trades often take a longer time to play out than they think or than they would like, often days or weeks.

The market is a slow, cumbersome beast. Today’s lesson is designed to prove this to you and to reinforce the need to hold trades for longer than you might be accustomed to or want to. Let the market do its ‘thing’ and give it room and time to move to your profit target.

You have to trade ‘loose’. Meaning, don’t get too attached or over-involved with the market.

Set your trades up and walk away until the next day and remember that you need to give the market both SPACE AND TIME to move so that it can move in your favour and make you some serious money.

After all, isn’t making serious money the reason why you’re trading in the first place? Well, this is how it’s done; holding trades, having patience and having the ballz to not get shaken out at every little fluctuation against your positions.


Source: Learn To Trade

https://www.learntotradethemarket.com/f ... o-play-out
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Trader's Thread 04 (Feb 12 - Jun 20)

Postby winston » Wed Jan 15, 2020 11:35 am

The Ultimate Trade Entry ‘Trick’ You Need To Master

By Nial Fuller

The main idea of this trick is that when you see a price action trade signal or a trend, you don’t just jump in right away at market price, instead you do what most of the other traders are not doing, you wait for a pullback, retrace or a rest in the market.

This trading trick of waiting for an optimal entry on a trade might mean that you miss a trade sometimes but this should not worry you because that is what sniper trading is all about;

We are waiting patiently for the ‘easy’ targets to simply ‘walk into our sights’, rather than shooting at everything that moves.


Source: Learn To Trade

https://www.learntotradethemarket.com/f ... ntry-trick
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Trader's Thread 04 (Feb 12 - Jun 20)

Postby winston » Wed Jan 15, 2020 12:45 pm

Trade Like A ‘Baller’ – (Act As If Your A Hedge Fund Manager)

by Nial Fuller

Having a big or small account SHOULD NOT change the method and process of your trading.

When they trade, they trade big, they go in with a specific view and opinion on a trade, enter it and then go about their business. What these baller traders are NOT doing is sitting in front of their screens biting their nails over every little tick for or against them.

Having this relaxed / no-stress approach to their trades actually makes them even more money in the end! Reason being, it eliminates temptation to do stupid things like close a trade out prematurely for no logical reason or over-trade.

The money does not make the trader…rather it’s the trader that makes the money!

You are struggling in the markets right now primarily because you are trying too hard and getting ahead of yourself. You are trading too often because you have an intense desire to make money, and you are risking too much.


Source: Learn To Trade

https://www.learntotradethemarket.com/f ... e-a-baller
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Trader's Thread 04 (Feb 12 - Jun 20)

Postby winston » Wed Jan 15, 2020 8:32 pm

How To Dominate Your Trading In 2020

By Nial Fuller

1. Focus on one single trading strategy or chart pattern until you completely master it.
2. Reduce the time you spend trading, and increase the time you learn about trading.
3. Fix your personal confirmation bias about trades and the market in general.
- 95% of traders will still develop a bias because of these ‘confirming factors’ that unfold.
4. Be aware of and avoid Recency Bias.
5. Write out your big goals as affirmations and read them once every few days to yourself out loud.
6. Slow it all down.
7. Don’t miss trades.
8. Exit trades if they are near your target.
9. Risk the same amount per trade.
10. Avoid trading markets you shouldn’t be.
11. Take stock of what you did right and what you did wrong.
12. Devise a plan to improve.


Source: Learn To Trade

https://www.learntotradethemarket.com/f ... te-trading
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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