Saturday, February 8, 2014

Trade management

What is necessary to win this game?

Establishing an edge ..
 A simple probability of one thing happening over another.
What is my trade management strategy:
  • Should I use stops? 
What and where the stops will be if I use them.
  • Am I going to be:

  • What will be my target price to exit? 
Is it a reasonable price point?
  •  What is the focus of my strategy:
Is it to maximize profits?
To minimize risk exposure..
or to maximize emotional control..
I Will commit to taking at least 30 trades using this trade management strategy:
Take notes on every trade to measure errors
Errors to be measured:
Not entering a trade when I had the signal
Entering and then changing my trade management start
Chasing a planned trade
Execution errors (e.g., on the platform)
Impulsive trade
  • If the trade management start change, then I will start a new trade sample (30 trades)
  • Once the series is done, I will have a better idea on how well the edge works.
  • My ultimate goal, however, is to build intuition and trust in myself... so that I can execute flawlessly!