Risk Management
If there is one thing, every trade has at one time or another messed up, beings money management!
Learn this the hard way you will want to jump off the building.
Get this right and trading will be an amazing journey! Get it wrong you’ll sink & quit.
Life = risk. From the moment your mom got pregnant there was never a guarantee that you were going to be born or born healthy or not. They took a risk and every body takes a risk because life is a risk. There is no free choice there. We take a chance with out partners in life, business, friends, careers, even pressing the gas a bit more than necessary on the highway!
When we do we do try to do it with some kind of a calculation.
So why don’t we when trading? The why we’ll get into in the later parts of this miniseries. For now, what are the problems in risk management is what we need to address.
First of all there is no risk management! I have seen this often with traders, they want to get in and they want the price to go to the moon and they are already about to order the Ferrari and then, its all over.
Before entering any business venture you have to calculate. Before entering the trade you have to calculate.
Sometimes day traders are in a “rush”, due to prices going up and down and everyone is looking at the screen and they want to get in! More often than not the trade is not planned out! The day is moving quick and “hell yea” if you are not getting in you are missing out.
So planning “a head of time” is necessary.
How does humanity progress? Answer: suffering. If we did not feel bad about our current state we would not look and sniff around for ways to improve it. Human instict and we cannot delete it!
How is that a help for progress? Answer: it is helpful if, from a pinch I get the message and do the right thing. If my tolerance for suffering is high than a person will keep getting blows for not using their mind to overcome the problem.
So, when we blow an account, and I have been there, three times in the past twenty years, you feel sick and pissed off (sorry about the lingo doesn’t happen often).
Once we get to these sickening levels, if you still have that stubborn nature, and the show must go on, then you will figure out the ways to overcome them.
Thus the timing of swing hours and swing days and pricing with PST at the GlobalTrader.Club and with all the work gone into it I will be frank but not arrogant about it. Everything I developed with literally grease on my hands was due to suffering! Is there an end, I freaking hope so but this is the closest relaxed way of day trading I could manage.
- Know the swing days in advance with a high probability of certainty,
- Know the swing hours in the day with a high probability of certainty,
- Know the pricing (via technical analysis and PST indicator) with a high probability of certainty,
- Plan the trade & trade the plan!
If all of these variable are at hand with a high degree of success rate, then we can plan it all in advance. No need to stare at the screens all day & only trade when time and price come together!
Planning requires information. For trading information = to be at the right price at the right time!
Link to YouTube Video: https://www.youtube.com/watch?v=tJcbHGiJWJY
