What to do when your trading system hits your maximum historical drawdown? One of my students recently asked me "What happens/what do you do, when you hit your max draw-down? Do you stop trading and take a break? Keep going?" There is a common piece of conventional...
We're trading for one specific purpose, mostly to make money. But the flip side of that, if we get it wrong is that we lose money. And when we're placing a trade, the fear comes up in three places. The first time that fear comes up is when you're about to hit the buy...
The first thing is being consistently profitable, and the second thing is having the discipline to stick to your system. I want to be clear that trading is not like a day job, compared to going to work, getting paid, there is very little consistency in your returns...
A big part of this rests in your trading psychology and confidence in your trading system, but there's another part that all of us as traders have slightly different psychology. I'm a fairly patient person, I don't want to make lots of decisions every single day and I...
When you design your system, you have to know what your exact entry rules are. We often focus on the indicators, but we miss the execution. I don't look intraday, I only look at daily charts. When I'm trading end of day systems, I download my data, I run my scans, I...
There are many ways to actually be profitable trading stocks in the market but what you need to understand is that there's no magic indicator, there's no rule that is universal. There are rules that work and there are rules that don't work, the trick is how do you, as...
It all comes down to your psychology, which is rooted in the confidence you've got in your system and your rules. If you're finding that when you're trying to place trades, you've got impulsive reactions like "Oh, this is a good one. I'm going to place a double order...
If you want to make money consistently, you need systems that will make money from different types of market conditions, bull markets, sideways markets, bear markets, and volatile markets, quiet markets. And you also need systems that will profit from the transitions....
It all depends on the mindset that you have, just think that trading is right for you. If you're fascinated by the markets, driven to learn more, spend your spare time reading about stocks and trading in the markets or systems and indicators, then trading is right for...
Yes, it’s possible, it's easy and you could definitely do that in all cases. The best way to mitigate large losses in the case of an extreme event is to do two things. The first one is to make sure that your positions will not hurt you financially or not devastate you...