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...
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...
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...
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...
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...
