Latest posts by Michael (see all)
- Yoga, Time Blocking, and Risk per Trade - December 14, 2017
- Why the majority of people will lose money on bitcoin - December 13, 2017
- Professional traders focus on process, not results - December 12, 2017
What is your Favorite Yoga Pose
It’s Ardha Chandrasana – or Half Moon Pose.
What it does for you
You have to practice your yoga the most when you’re off the mat and not in class. That’s the whole point. Like great trades, you have to take them home at night.
What is your trading day look like
Trading begins the night before. I run my systems at 6 pm Sunday night for Monday’s trading. Call in the orders by phone.
The orders are worked during the day and all I do is wait for the phone to ring with a fill. If I’m filled, I give them a protective stop immediately. Sometimes the there are no fills, then I repeat the process the next day with the same orders.
Most of the time I’m reading and studying. I don’t have cable – I’ve cut the cord about 13 years ago. I practice yoga most days from 12 to 2 pm PT.
How much should I Risk Per Trade
In establishing a position, I risk 0.10% (10 basis points) per trade then it grows from there. I am willing to add continuously if the trade continues to work in my favor.
By risk so little at the beginning, I couldn’t care less about any trade at any given time. I add when I’m making money, and that’s how I decide.
We are powerless over the markets and how the instruments perform once we’re long or short. With such small risk at the beginning, I’m not emotionally invested in the outcome of any trade. Even after adding several additional 0.10% units of risk, I’m still indifferent. For example, if I get to add 4 additional units, I’m only at 0.50% risk or 1/2 of 1%. Peace is a choice.
FYI – I loathe having to look at a computer monitor or screen so I don’t do it. My brokers are incentivized to fill my trades so I trust that I’ll get filled when my stops are hit. That probably seems blasphemous to day traders, but I want to make money and have a high quality of life.
Making trading look like blue collar despair is not what trading is about for me. It shouldn’t be labor intensive. Hence most traders lack the emotional intelligence to be their own best coaches.
Too many traders are emotionally invested in having to be correct on their trades. I’d rather focus on making money over longer periods of time, and if that means having a commodity futures position on for 3 months, so be it. That does’t make me an investor. Sometimes, it takes that long for “high tide” to come in.
If you’re struggling or not making money, do yourself a favor in 2018. Stop looking at 5 minute bars and start thinking longer term. You’ll make more money and you’ll be happier.
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