So let’s have some fun folks! “You take the blue pill, the story ends. You wake up in your bed and believe whatever you want to believe. You take the red pill, you stay in Wonderland, and I show you how deep the rabbit hole goes.” I’m sure most people are either familiar with the movie The Matrix or have heard the above quote. It’s an interesting premise I think. Let’s have a discussion and see how we can relate this to trading! To start with, I will just be open about my own personal frame of reference for all
Let’s talk about stop losses and how to set them. In a previous article I said that the only thing we have any control over in trading is how much money we are prepared to lose. The way we manage this risk is by using a stop loss. The name says it all – its purpose is to stop your losses at a pre-determined point. You may have heard the expression ‘cut your losses short and let your profits run’. A stop loss is the way we cut our losses short. However it is one of the hardest things psychologically
To buy click on cover. Click link below for Trading Secrets at The Book Depository Book Depository Link When I had been trading for around 6 months, I was starting to become frustrated because both companies I had purchased trading education from were throwing me fish rather than teaching me to fish for myself. I started my trading doing covered calls which work quite well for producing income every month but they really only work well in a market that is going up in value. I found myself holding shares that had reduced significantly in value that I
Click on cover to buy from Amazon Click below to buy from The Book Depository Book Depository Link Click on cover to buy from Amazon Click below to buy from The Book Depository Book Depository Link These books are highly regarded by any trader who has read them. Jack Schwager interviews a variety of different traders all with different approaches and all of thm very successful – although I believe a few of them may have gone bust after these books were released. It’s great getting insight from people who have waked the talk and made a
Click on Cover to buy from Amazon Click below to buy from The Book Depository Book Depository Link Click on Cover to buy from Amazon Click below to buy from The Book Depository Book Depository Link Two of my favourite books. If you think you have your trading psychology ‘nailed’ then I suggest you read these books. If the house is burning down, these two books are on your list of things to take with you. Originally posted 2017-05-02 18:43:58.