Would you like to discover a quick and simple risk management strategy that is easy to apply to any trading plan, and has the potential to vastly improve results? Excellent! I’m not talking about the placement of stop losses, which is what most people consider as ‘risk management’. Rather, this is a simple tool for…
Reviewing Old Charts (AKA… “I can’t believe I held the trade past that stop loss”) I highly recommend keeping ALL your old trading charts and journal notes. They’re great to review each now and then. Not only do they offer educational value but they also offer a source of motivation in allowing you to see the…
Before you even think about strategy… Reduce the risk of single trade catastrophic failure. Stop losses are essential. If you think you can operate without them, leave my site now. Unsubscribe. Professional traders respect the risk within the market. If your platform does not allow for automatic submission of stop loss orders when your entry…
It’s normal from time to time (often even) to get frustrated at the overwhelming task that lies ahead. At these times, I find it incredibly helpful to pause and reflect on exactly where I’ve come from and how far I’ve progressed. Yes… way back in the early days… I bought into Croesus Mining near…
I’m always fascinated to hear from traders who have trouble exiting a trade at the stop loss. The ones who move the stop loss further away to avoid the exit. And then move it further. And further. Until eventually, they can’t take the pain any more, so they get out of the trade and destroy…
I was chatting to another trader this morning about exits, and thought it might be time to share my understanding of ‘the basics’ of exit strategy and exit management. It really is an area of trading that gets very little attention compared to the other end of the trade – the entry. Go into any…
In part one of this article, we considered a few questions: Should we use a tight stop loss to cut any losses quickly, or a wide stop loss to allow some room to move? How quickly should we move the stop loss to breakeven? Should we take profits at a target, or should we let…
Welcome back. Based on the information we discussed in parts 1 and 2 of this series; let’s now discuss my personal approach to exit management for short-term intraday trades. The best way to do this is to first consider, what is my goal from trading, how do my chosen markets move, and what psychological needs…
I once heard a statement by Rebecca Fine of www.scienceofgettingrich.net that says something along the lines of “If what you’re thinking about isn’t something that you want to have happen in the next three minutes… get rid of the thought and think something else.†While that’s a great way to live your whole life, and I certainly…
One of the common email questions I get through my website relates to difficulties in sticking with stop losses. Some traders don’t place one in the market at all, promising that they’ll get out when price hits a certain level. Of course, when price gets to that level there’s no shortage of reasons why they…
