Great post!
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Best Trading Advice
- Thread starter ProfitTakgFool
- Start date
Great post!
Quote from Sheik:
View Trading as a Score in Points and Not In Money
Stop counting dollars every time the market moves and start concentrating on following your rules flawlessly. When you can operate on this level not only do your profits
soar over the long run but it takes away all the stress of trading.
All top traders never saw the markets as a cash box but simply
as a way of operating a business. the name of the business was to follow
their rules and score the points. It's not possible to become a top trader
if you view every tick in the market as money lost and gained.
Forget about the money that will take care
of it-self it's all about those rules and how well you can follow them.
Early in my career one of the biggest mistakes I made was trading my P/L. I left so much money on the table it wasn't even funny. Trade the charts, not your P/L.
bingo.
concentrate on your setups, NOT the money
if you concentrate on your setups, and they have positive expectancy, and you manage risk (don't overleverage) you will make money. if you concentrate on the money, you will not trade your setups in a disciplined manner, and then spiral downhill (for most traders).
every trade is a BUSINESS decision. think of it that way. you should be as calmly detached as you would in any rational business decision.
90% + of retail futures traders lose money. they constantly think "how much $$$ can i make?"
what you should be thinking of is DEFINING YOUR RISK, not making a killing.
here's another aspect of trading.
if you are defining "success" by how much money you made (at least in the shortterm n<100 trades or so), then you are not thinking rationally.
if you break trading rules, and HAPPEN to make money - that's LUCK not good trading.
if you follow the rules and happen to have three losers in a row, that is also (bad) luck and happens even with 75% setups (which is a very high expectancy setup).
concentrate on your setups, NOT the money
if you concentrate on your setups, and they have positive expectancy, and you manage risk (don't overleverage) you will make money. if you concentrate on the money, you will not trade your setups in a disciplined manner, and then spiral downhill (for most traders).
every trade is a BUSINESS decision. think of it that way. you should be as calmly detached as you would in any rational business decision.
90% + of retail futures traders lose money. they constantly think "how much $$$ can i make?"
what you should be thinking of is DEFINING YOUR RISK, not making a killing.
here's another aspect of trading.
if you are defining "success" by how much money you made (at least in the shortterm n<100 trades or so), then you are not thinking rationally.
if you break trading rules, and HAPPEN to make money - that's LUCK not good trading.
if you follow the rules and happen to have three losers in a row, that is also (bad) luck and happens even with 75% setups (which is a very high expectancy setup).
Very well said.
Quote from Sheik:
View Trading as a Score in Points and Not In Money
Stop counting dollars every time the market moves and start concentrating on following your rules flawlessly. When you can operate on this level not only do your profits
soar over the long run but it takes away all the stress of trading.
All top traders never saw the markets as a cash box but simply
as a way of operating a business. the name of the business was to follow
their rules and score the points. It's not possible to become a top trader
if you view every tick in the market as money lost and gained.
Forget about the money that will take care
of it-self it's all about those rules and how well you can follow them.