Rule based trading: better to not trade, than lose it all
It's a good idea to come up with a systematic way of trading.
I learned a great deal from Tim West, I'm indebted to his teachings.
He taught me about the importance of risk management, and how it can trump trading accuracy in the long haul.
You can be profitable even with random entries, if your tp is bigger than your stop.
That made me think a lot, and I'd like to share one interesting way to look at the markets with everyone.
Slap on the weekly and daily pivots, and my WMA Short term bands for example.
You can clearly see how you can gauge risk, but using these signals, and estimate your take profit level.
A max of 5% risk per trade is a good idea, with 3% being ideal.
Don't be overly greedy, and don't try to trade for the sake of it, it's a business and it should be approached seriously.
If you do otherwise, you're nothing but gambling.
It's a good idea to seek coaching, there are plenty of 'experts' in the internet, and plenty of people willing to take your money.
I can vouch for Tim West, his coaching has been of tremendous help to become consistently profitable.
Best of luck to everyone in this 2015 that is just beginning.
Cheers,
Ivan.
I learned a great deal from Tim West, I'm indebted to his teachings.
He taught me about the importance of risk management, and how it can trump trading accuracy in the long haul.
You can be profitable even with random entries, if your tp is bigger than your stop.
That made me think a lot, and I'd like to share one interesting way to look at the markets with everyone.
Slap on the weekly and daily pivots, and my WMA Short term bands for example.
You can clearly see how you can gauge risk, but using these signals, and estimate your take profit level.
A max of 5% risk per trade is a good idea, with 3% being ideal.
Don't be overly greedy, and don't try to trade for the sake of it, it's a business and it should be approached seriously.
If you do otherwise, you're nothing but gambling.
It's a good idea to seek coaching, there are plenty of 'experts' in the internet, and plenty of people willing to take your money.
I can vouch for Tim West, his coaching has been of tremendous help to become consistently profitable.
Best of luck to everyone in this 2015 that is just beginning.
Cheers,
Ivan.
