- Money and Mind
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Trading can be tricky, of course, thanks Captain Obvious…No seriously some of the most overlooked
1. Measure Twice, Cut Once
Trading Electronically has raised the opportunity to lose even more. Just a couple of months ago I placed a trade on Nadex.com for 111 contracts…OUCH Now luckily I was able to recoup do to some quick thinking.
Some tips that I do to make sure I got the right order and process is: I write down the signals on a piece of paper. Then I read it aloud. This keeps it fresh in my mind. Next, I slowly start to go through a repetitive motion that I have trained myself for.
- Open ticket
- Place quantity
- Check asset (read allowed)
- Check quantity
- Look at paper to confirm
- Push accept.
But some of you are not so lucky. Some make mistakes while trying to figure stuff out on your LIVE account…Train yourself on what to look for…
Want a great system to train yourself on the procedure of getting in and out. Use the Traders Mind Series in the learning center at Dexsignals.com
2. Plan your TRADE, Train Your Plan then, Trade your Plan
You’d think that all traders would have a trading plan by now. I have shouted this from the roof tops for everyone to hear. If you make a plan you must then follow that plan in a training environment first.
There are traders who trade completely on emotion and irrationally get into trades without thinking. Making a plan comes easy.
- When can you trade?
- How long to trade for?
- Have the rules set for you (signal rules and such)
- Have your maximum risk and profit understood
- Look at your data.
3. Take profit on your winning trades
A commonly overlooked risk management practice is taking SOME of your profits out of the trade while it is in your favor. I commonly trade with 4 contracts on Nadex.com so when I have a doubt about the market or maybe I feel really good about some of the profits, I will take out only half of what I have in, leaving the other to risk to expiry.
I know its is very tempting to run it to expiry but it is a common practice that will yield a safety net for you. Unless of course you have such a great signal base like we have with the 2020’s over at Dexsignals.com
4. Back away from the computer screen
When you feel run down, over tired, maybe even mad or worried. These are triggers for BAD trading times. You may also have just come off a loss. Times to take a break if you are any of the following:
- Any altered state of mind (come on you know what I am talking about)
- Chasing a loss
- Critical things happening in your life
5. Show me my withdraw
On a regular basis you should be doing withdraws. Though this is a great concept, you must be prepared and do so systematically and not just come up with a number.
Once you had set your amount you need per month and then acquired your balance to trade it, safely create the line that you must be at to maintain your balance each week.
Choose a time to withdraw. Each has its benefits
- Once a week – gives you a payday type of feel, if you need weekly piles of cash
- Bi monthly – twice a month gives you a little more cash at one time and also keeps it in the system and grows your balance.
- Monthly – this is a tough one unless you have other sources of income to maintain your lifestyle.
- Quarterly – unheard of unless you are an LLC like me and I use that quarterly as a bonus and refrain from paying income tax on it. LOL ahh..I love me.
Special note to this: sharing your results with others can help you sustain a good warm feeling about what you do, unless it becomes braggadocious and irritating..