Regardless of your risk and rewards profile, a good investment portfolio needs diversification. Even though this reduces volatility, no portfolio is protected against risk or loss.
When a trader enters the market, any following price movement is based on market participants’ collective actions not any individual’s own opinions, hopes, and beliefs. While a trader can manage a trade via position size and exit strategies, he can not determine whether his stop loss or profit level is hit. A trader is at the market’s mercy to choose the future of each of their trades.
With a price action strategy, the trader’s decision is made up through the current price movement.
If you are just arbitrarily trading what you like without any real underlying process, procedure or strategy, the long-term odds of success are small. It is important that you create a system or strategy for yourself that helps you to trade in a manner that consistently works, reduces risk, and does not destructively put yourContinue reading “Ask These 10 Questions Every Trade”
Trading for a living is like any other professional endeavor. Like any other business, it requires a large amount of capital to go full time and the returns are irregular, almost like being a commissioned salesperson.
The correct psychology and mindset are the first step towards productive trading. They don’t ensure you’re going to be a productive and efficient trader but the wrong mentality almost ensures a loss.