2 Reasons for Poor Trading and How to Guarantee Improvement

2 Reasons for Poor Trading and How to Guarantee Improvement

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Episodio
78 of 1242
Duración
14min
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Categoría
Economía y negocios

Practice Having Discipline Like for a baseball pitcher, it's about feel and consistency. That means discipline. You need to do the same thing over and over in order to be good an anything and that's especially true for trading. In trading, that means you have to start with good habits, trade positive expected value trades, and consistently replicate that process. If you have a smaller account, you might think you are relegated to penny stocks or fallen angels. I would not do that because the emphasis is on making lots of transactions. Unless you are an HFT firm, the number of transactions work against you. Stay in your winners for as long as you can. They go a long way to ensure you are successful or are becoming a successful trader. What I would do if I had a small account or was underfunded, is to either trade commodity spreads or option strategies. You can create hedges with either strategy and limit your risk while putting the odds in your favor. The margin requirements are also smaller so you don't have to tie up a great deal of your trading equity in one trade.


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