In this week’s episode I look back at the key lessons and 5 components for traders
I had a giant goal, which was completely unreasonable
Outcomes based
No plan
My goal is simple- A perfect trade
Keep and update my journal regularly
Read one trading book per month.
Focusing on the weakest link (Me)
I simply didn’t have any money management or risk management what’s so
I was the typical losing trader, I let my losers run with hopes that they would turn back in my direction until usually
Sometimes I would literally take a trade and hope for the best
Now I subscribe to the mantra of only risking 2% of capital per trade
I am rigid with my stop loss, and I have no opinions on where my stop loss should be. I just place it where my predetermined plan tells me to put
My position sizing also adheres to the 2% rule and I don’t compromise
To be honest I had no process or plan to be discipline to.
I have key fundamental goals and processes that bring me closer to my goals
I read a book everyday
Exercise
I have 18H00 appointment with my domestic watchlist (Resi and Finings index)
I only take trades that the 7/21 System give on those two indecies.
I was trading an account far too small and I had unrealistic expectations.
Still don’t have enough capital to trade with discipline and proper risk management.
That’s why I am trading a demo, to work on myself while I keep slowly building up the required capital to trade with discipline.
In all honestly I didn’t have a system. I was jumping from system to system.
Essentially I was caught in that vicious cycle of looking for a holy grail system that has 100% win rate. Which none exist.
And jumping from timeframe to timeframe.
I only trade the one system, the 7/21 system
Only on a daily chart
Only on the Fini and the Resi index
Only the mini contract.
I now keep it simple
Trading in the zone -Mark Douglas
Trading for a living - Dr Alexander Elder.Follow us : https://twitter.com/villagetrader2
Visit : village trader.co.za