Posted on Friday, January 15, 2021

There seems to be a natural order of things that risk managers need to evolve through to find their game.

Those include the emotional lessons around security selection, position sizing, entries, and exits.

For most, this is time consuming – and that can be frustrating in and of itself.

I have found that there is one overarching thing that can help expedite the process.

On some level it has nothing to do with trading, but on another, it has everything to do with trading.

Posted on Thursday, January 14, 2021

Winners rotate – you can’t fall in love

If you take profits, delete the name from your screen.

These aren’t lovers – you can’t fall in love with former flames.

The last thing you want to do is start looking at 5-minute bars after exiting a winner.

Posted on Wednesday, January 13, 2021

The best frequency to adjust your stops

Adjusting your stops to take profits is an art and science and it ties directly into your tolerance for risk.

How much of your current unrealized gains are you willing to risk in order to stay in a trending instrument?

This topic is at the top of the list in trading psychology.

Posted on Tuesday, January 12, 2021

It might not be great for your personal relationships, but there might be a benefit to keeping your risk on a 2-inch leash.

Posted on Monday, January 11, 2021

It’s wise to adjust your stops several times per day if necessary.