This page’s purpose is for me to right down just a couple notes every so often for my future-self to read and be reminded of. Essentially this is a condensed journal which may be added to daily, weekly, monthly, depending on my personal trade activity. These notes are in no particular order.
1. Losses happen, often, but if you have practiced using or ‘backtested’ or process, you should know that they are simply apart of the game.
2. I do not want to trade flat bases that have not ebbed and flowed to form a strong pattern with a dip on the right side, these tend to fail more often than other breakouts (Ex. $HOT & $IBKR).
3. Trade according your emotional capital risk parameters first, then capital.
4. Position sizing should be relative to the associated risk, they should not all be equal. No trades are of equal design.
5. Fight the temptation to sell when it starts to go your way and buy more when it doesn’t. Hold the winners as long as you can, sell the losers as fast as you can.
6. The market is out there to persuade you not to be disciplined & it will do whatever it can to convince you that is lucrative not to be.
7. A less understood company or business model, the more technically clean/sound it will trade (likely).
8. Know your time-frame. Position traders, don’t concern yourself with the daily moves. Swing traders, don’t worry about intraday price movements.
9. I would rather miss a move than rush a trade. Be patient with set ups & trades. Another will eventually come around.
10. Think about what it will be like IF you lose ‘X’ amount of money before taking the trade and ask yourself if you are going to be alright with this.
11. Apart of a GOOD process is knowing when you are WRONG, we aren’t perfect beings, in or out of the markets.
12. We all have biases and theses towards the market at any given point and this is OK. However, it is vital for the long term successes of ‘us’ traders to recognize a change in market character and be ready to react accordingly to it with a process that was known BEFORE HAND.
13. Breakouts will have a higher tendency to fail during market corrections, keep this in mind and keep positions smaller until we set back up with strong set ups again.
14. Your process should be doing the the heavy lifting for you. You should not be working on anything other than implementing what the process has told you.
15. Perhaps those who are quick to judge TA & call it meaningless fail to consider the crucial ‘in context of’ aspect of the discipline.
16. There is no time in life in which immediate gratification has a greater reward than the consequently future foregone result.