First of all, a very Happy New Year to all who are reading, to your families, to your small furry animals and to your now hopefully departed back at home in-laws.
When you trade full-time, one thing you have is time. It is something you don’t always have when learning to trade. It’s been proven that constant learning is a great benefit to the brain. So I try to learn. One new thing every month.
I am married, with two boys under 9 who are on a permanent sugar high. I balance a career in trading, development and start up ventures and still cannot kick my Candy Crush addiction. So how can I fit in time to self educate?
Trading has no meaning. Ask yourself, who benefits from you as a private trader? Why do you trade? Don’t spin me the tale of being the liquidity of the markets. No we’re not.
As a trader you go to the effort of back testing a system. You work out an entry and exit strategy, fine tune your stop loss levels and are ready to go. Now for trade execution.
Stop losses. One of the most hotly debated areas of trading. Should you have them? Where to place them? Why are they needed?
Trading can be a taxing affair (see what I did there). The market is a moody beast, and every husband knows it pays to take notice when moods start swinging. The last thing you want with a moody market is overtrading.
Chances are you have gone through many cycles of trading systems, time frames and strategies. You watch Forex Factory, Stocktwits and Tradingview, but still things aren’t clicking or have come off the rails.
News, most people watch it, many want to be in it, but how many trade it? I wrote this a day after some poor housing data in the US saw the USD get kicked, belly flopped and Chinese burnt (the most painful) and those trading news are still recovering (or rolling around naked in money).
When traders start looking for that magic “bucket load of cash” trading system, often the last thing thought about are exit strategies. Yet it is the exit that make a trader money.