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1/ My trading REMINDERS, REALITIES, & RULES
Trading REMINDERS
1. Your career bid/ask spread determines your success.
2. The easiest thing is to think like most traders. That’s why most traders don’t make money.
3. Picking bottoms and calling tops destroys careers.
Trading REMINDERS
1. Your career bid/ask spread determines your success.
2. The easiest thing is to think like most traders. That’s why most traders don’t make money.
3. Picking bottoms and calling tops destroys careers.
2/
3b. Almost all beginnings of massive sell-offs and melt-ups/blowoff tops have violent retracements during the beginnings that allow you to enter your position without shorting tops and buying lows.
4. Nothing feels worse than worrying about your positions in the market.
3b. Almost all beginnings of massive sell-offs and melt-ups/blowoff tops have violent retracements during the beginnings that allow you to enter your position without shorting tops and buying lows.
4. Nothing feels worse than worrying about your positions in the market.
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5. The thing that feels worse than worrying about your positions in the market is losing your entire month on a single trade.
6. The thing that feels worse than losing your month on a trade is losing your year on a trade.
5. The thing that feels worse than worrying about your positions in the market is losing your entire month on a single trade.
6. The thing that feels worse than losing your month on a trade is losing your year on a trade.
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6. The thing that feels worse than losing your month on a trade is the trade that ends your career.
7. The “Never Covered” trade is the greatest possible/theoretical trade. Think about that.
6. The thing that feels worse than losing your month on a trade is the trade that ends your career.
7. The “Never Covered” trade is the greatest possible/theoretical trade. Think about that.
5/ Trading REALITIES
1. Trading is 95% mental, 5% methodological
2. Trading stocks (in itself) provides ZERO value to the world. You must be OK with this.
3. 99.5% of traders DO NOT make a killing
4. 95+% of traders WILL NOT/CANNOT make a living
5. Slippage kills
1. Trading is 95% mental, 5% methodological
2. Trading stocks (in itself) provides ZERO value to the world. You must be OK with this.
3. 99.5% of traders DO NOT make a killing
4. 95+% of traders WILL NOT/CANNOT make a living
5. Slippage kills
6/
6. Fees add up
7. Without rules, you’re toast
8. If you don’t know your Greeks, you’ve got no business trading options
9. Career-enders (as well as the majority of ALL career total losses) come from shorting highs and buying lows + being slow to cover open losses
6. Fees add up
7. Without rules, you’re toast
8. If you don’t know your Greeks, you’ve got no business trading options
9. Career-enders (as well as the majority of ALL career total losses) come from shorting highs and buying lows + being slow to cover open losses
7/ Trading RULES
I.e., How do you make money as a trader?
You make money as a trader by buying and selling a spread profitably with more volume than you do unprofitably. You accomplish this by:
I.e., How do you make money as a trader?
You make money as a trader by buying and selling a spread profitably with more volume than you do unprofitably. You accomplish this by:
8/
1. Trading with the Trend
2. Exiting losing trades quickly (minimizing losses)
3. Holding on to winning trades (maximizing gains)
4. Trading a wide, highly profitable spread (the wider, the better)
1. Trading with the Trend
2. Exiting losing trades quickly (minimizing losses)
3. Holding on to winning trades (maximizing gains)
4. Trading a wide, highly profitable spread (the wider, the better)
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5. Executing trades according to a process or system you understand
6. Leveraging multiple strategies that incorporate the above (1-5)
7. Trading edges when you find them (closing imbalances, IPOs. SPACs, crosses, etc)
5. Executing trades according to a process or system you understand
6. Leveraging multiple strategies that incorporate the above (1-5)
7. Trading edges when you find them (closing imbalances, IPOs. SPACs, crosses, etc)
@axelroark Your post yesterday encouraged me to start using Twitter for trading and to contribute, as opposed to only take. Thx for the encouragement to do so. Hope you find something of interest.
