I would like to put together a one line reference board of traders top tips. No drawn out methodologies please. These are covered elswhere and can (in my case anyway) vanish from the brain the next day. A short preface if need be, then the one line pearl of wisdom. This way the one liners have more chance of staying inside the old grey matter. Only tips that are in use today and are actually earning you a crust. For example... (Oh,and Naz? I know exactly what you are going to say...) Being predominatly a short term daytrader with trades that in general last anywhere from 4/5 hours to as little as one minute means that the entry on some trades are crucial to profit. My tip? Choose the direction; and buy or sell on a reverse bar. Less risk/more profit.
The most profitable strategy is very often the inverse of what your intuition wouid lead you to believe. If trading was as easy as buying or selling counter to a trend, we'd all be out sailing.
%%%%%%%%%%%%%%%%%%%%%% Countertrend is the most fun way to trend trade; but unless you are a market maker, you may want to learn profit from a market maker. Market Makers Edge, Joshua Lukeman uses 6 months candle charts[Trend trader- investor-not countertrend, for the most part..............................................................................................................................................................................................................................You think Rich Dennis is telling the truth when he talks trends profits more than countertrends profit?? I do You may be able to-profit- trade -invest with counter trends; but to really do bear[down] trends in a bull[up] market, you may want to find a sector with a long[LOL]records of bear trends in bull market. Not many, but a few may be found-NOt a prediction.Wisdom is profitable to direct.Thanks
The best rule for trading I've ever used (and I've used it for 20 years without fail) is: Get out of all losing trades the day of entry. Meaning, if you enter a trade and by the close it is a loser from the entry point, get out by the close. Even if it is a long term trade. If you have to get in again, fine. Over the long haul you will be "saved" many times by major breakout fakeouts which you will have gotten out of early.
Excellent post. I would take this even one step further. The best trades are green very quickly. We are best served to exit all losing trades quickly and wait for a better entry. It's important to enter with the mindset that we may have to make 2 or 3 entries to get a good one. So we have to mentally prepare ourselves for many very small losses. It costs enormous mental and emotional capital and opportunity cost to babysit losing positions that wears us down and we often make poor decisions because we so badly want the position to work. Then when much better entries present themselves we completely miss them because we have been babysitting our bad entry and have spent our emotional capital.
No matter how many one liners a person amasses They still must all be combine into a working / harmonious / sustaining system of.... YOU the trader RN
You should mention what you trade because many trading instruments have tips or market tendencies only specific to that trading instrument and not to any other unless its a highly correlated market. Simply, you don't want to make the mistake of trying to apply a trading tip from someone that trades something you don't trade and the trading tip isn't appropriate for your trading instrument.
The problem with the word "wisdom" is that it is something beyond what is.....a known.....it is not something that we can simply read / have a collection of them so that we can understand its true meaning.....therefore, reading and understanding are two very different things here. BLASH is all you ever need.....yet.....so obvious....yet so few truly understands its true meaning.....deep within.....yet.....so hard to do.