Basic MM Premises of Trading that
1. The market is meant to take the most amount of money from most amount of people. Bulls/Bears make money but Pigs always get slaughtered in the end.
2. Control of the markets is an illusion, we are just trying to do what the markets are doing not control them.
3. Nothing is certain, market always adapting to the times to make sure they accomplish rule number 1.
4. Your best friend is risk management. A clueless trader will survive with a plan, but the best trader in the world could blow up if wrong without such.
5. You have to believe you deserve to win, if not your ego/psyche will allow past losses to carry you backwards vs learn and move forward. The MM will use weak minds, impatience, and revenge trading to wipe you out.
6. The attachment to being right has made more people broke then anything else has, admitting your an idiot/follower or that you can be wrong is the best way to start a trade.
7 A trader without humility, discipline, or patience will be a busted trader. Just because the market is open doesn't mean it time to take money out of the market. The MM knows such and will use it against you if you can't grasp such ideas.
OUR EDGE/TRADE TRIGGERS/KNOWNS
----- Position Sizing----
1.The less you know the less you trade. If you feel like you're forcing a trade it's probably wrong.
2. The shorter the time frame the trade is based off then the less you should position size. Trying to guess the day to day action is gambling. Some know it better than others, however news,tweets,headlines, one off events can make things temporarily change hence the risk is higher if concentrated to shorter time frames.
3. Always have bullets to fire, sometime the deals get to prices or levels that are perfect for setups or not sustainable. The trader who is all in always will be stuck wishing they could have bullets.
4. Treat your $ like soldiers, you are the general, with out your soldiers you will not win the war. Treat your $ with respect and you won't be gambling.
5.TIMING is by far the hardest thing in trading for swing trades. What might seem like the obvious trigger could just be the first birthing pain of a trend change.
6. The use of options selling is a great tool. When the moves are not sustainable you can sell options to hedge your position or lower your cost basis. As the Implied Volatility rises after a huge move it is not sustainable, use such to your advantage as the market doesn't move in straight lines for very long.
7. Your position sizing will determine your tuition fee to learn all the rules, do's/dont's of the game. If you want try and cut corners by raising the stakes, don't be surprised if you start over faster each time and the cost of learning gets more expensive.
MARKET EDGES THAT ARE USUALLY LEARNED FROM MISTAKES/EXPERIENCE OR FROM OTHERS PASTS
1. There will be times when no one knows what the heck is going on. Fact, some times the market it not predictable as money is moving so fast and wild that people literally should just watch. At these times it's best to wait, why? The market mechanisms that be in volatile times are meant to whip each sides butt. Trying to get in the middle of fight isn't worth it. Let one side win and then play accordingly.
2. The MM and market mechanisms LOVE to retest via W/M/Rounding out at worse. The only time to play the first move is with options as the IV should be higher at those times of the initial fast moves. Having the ability to wait and see is crucial.
3. This is a zero sum game. Someone is losing if you're winning and vice versa. To hunt your target you must know how to be the hunter and the target. If you don't know if you're either than you're a sucker at worse.
4. Manage your expectations. Just because you are in a trade, doesn't mean it's going to do what you think always. The markets don't revolve around us so why pretend to think such.
to be continued........
1. The market is meant to take the most amount of money from most amount of people. Bulls/Bears make money but Pigs always get slaughtered in the end.
2. Control of the markets is an illusion, we are just trying to do what the markets are doing not control them.
3. Nothing is certain, market always adapting to the times to make sure they accomplish rule number 1.
4. Your best friend is risk management. A clueless trader will survive with a plan, but the best trader in the world could blow up if wrong without such.
5. You have to believe you deserve to win, if not your ego/psyche will allow past losses to carry you backwards vs learn and move forward. The MM will use weak minds, impatience, and revenge trading to wipe you out.
6. The attachment to being right has made more people broke then anything else has, admitting your an idiot/follower or that you can be wrong is the best way to start a trade.
7 A trader without humility, discipline, or patience will be a busted trader. Just because the market is open doesn't mean it time to take money out of the market. The MM knows such and will use it against you if you can't grasp such ideas.
OUR EDGE/TRADE TRIGGERS/KNOWNS
----- Position Sizing----
1.The less you know the less you trade. If you feel like you're forcing a trade it's probably wrong.
2. The shorter the time frame the trade is based off then the less you should position size. Trying to guess the day to day action is gambling. Some know it better than others, however news,tweets,headlines, one off events can make things temporarily change hence the risk is higher if concentrated to shorter time frames.
3. Always have bullets to fire, sometime the deals get to prices or levels that are perfect for setups or not sustainable. The trader who is all in always will be stuck wishing they could have bullets.
4. Treat your $ like soldiers, you are the general, with out your soldiers you will not win the war. Treat your $ with respect and you won't be gambling.
5.TIMING is by far the hardest thing in trading for swing trades. What might seem like the obvious trigger could just be the first birthing pain of a trend change.
6. The use of options selling is a great tool. When the moves are not sustainable you can sell options to hedge your position or lower your cost basis. As the Implied Volatility rises after a huge move it is not sustainable, use such to your advantage as the market doesn't move in straight lines for very long.
7. Your position sizing will determine your tuition fee to learn all the rules, do's/dont's of the game. If you want try and cut corners by raising the stakes, don't be surprised if you start over faster each time and the cost of learning gets more expensive.
MARKET EDGES THAT ARE USUALLY LEARNED FROM MISTAKES/EXPERIENCE OR FROM OTHERS PASTS
1. There will be times when no one knows what the heck is going on. Fact, some times the market it not predictable as money is moving so fast and wild that people literally should just watch. At these times it's best to wait, why? The market mechanisms that be in volatile times are meant to whip each sides butt. Trying to get in the middle of fight isn't worth it. Let one side win and then play accordingly.
2. The MM and market mechanisms LOVE to retest via W/M/Rounding out at worse. The only time to play the first move is with options as the IV should be higher at those times of the initial fast moves. Having the ability to wait and see is crucial.
3. This is a zero sum game. Someone is losing if you're winning and vice versa. To hunt your target you must know how to be the hunter and the target. If you don't know if you're either than you're a sucker at worse.
4. Manage your expectations. Just because you are in a trade, doesn't mean it's going to do what you think always. The markets don't revolve around us so why pretend to think such.
to be continued........