What Does A Professional Trader Work On In His Trading?

I jumped at the opportunity to participate in the upcoming Festival of Learning hosted by RealVision.  (Here is where you can sign up for the sessions that run from September 2nd - 4th).  My eagerness came from the chance to speak with Mark Ritchie, Jr., an experienced trader and fund manager.  I wanted to hear his take on trading psychology and the challenges he faces running his own fund.

So what was one of the very first things that Mark discussed in our pre-recorded session?  Was it managing his losses or staying in emotional control of his trading?  No. It was letting his profits run.  He wisely pointed out that a trader can be great at limiting losses and getting stopped out, but still not make the most of his or her trades.

Mark questioned the wisdom of the old saying that you can't go broke taking a profit.  Because much of a trader's total return comes from a handful of top opportunities, taking profits prematurely can cap success.  This is why, in my work with traders at SMB, we focus on monthly statistics and pay particular attention to whether the average size of winning trades is greater than the average size of losers.  Many times that ratio needs improvement, not because the trader is letting losing positions go or adding to them, but because they stop out of winners before the positions have hit their targets.

Here's a massive mental point:

The traits and strengths that we need to limit our losses are different from the ones we need to maximize our gains .  We need to consider these as separate skill sets and work on them independently.

Limiting our losses is all about prudence and conscientiousness:  the ability to be careful.

Maximizing our profits is all about self-control: the potential to sustain a goal in the face of uncertainty.

Mark's insight was that, for experienced traders, the prudence comes naturally.  If it didn't, they would never get to the point of being experienced!  But tolerating uncertainty is different.  When we watch our positions tick by tick, it's easy to see something concerning and use it as an excuse to bail.

There's an old saying:  failure to plan is tantamount to planning to fail.  If tangible targets for our positions aren't firmly set in our minds and mentally rehearsed, we will have no goals to focus on to get us through the uncertainty of price paths.  The real problem is not just getting out of trades too early.  The problem is failing to set vivid goals for our trades that energize us and feed our willpower.  Come to think of it, that's a problem many of us face in life as well as markets!

RealVision Festival of Learning


forex trading forex factory what is forex what is forex trading forex market forex scams forex brokers forex com forex market hours forex news forex trading app forex trading for beginners how to trade forex best forex broker forex charts forex signals is forex legit pips forex forex investment ig forex forex calendar forex trading strategies hdfc forex card login best forex trading platform forex brokers usa forex cargo forex demo account forex exchange forex patterns forex reddit forex trading scams how to start forex trading tradera forex what is forex trading and how does it work what is leverage in forex best forex broker in usa best forex trading app forex app forex compounding calculator forex currency forex factory calendar forex profit calculator forex tracking forex trading platforms forex vs stocks learn forex trading lot size forex no nonsense forex td ameritrade forex forex cargo tracking forex definition forex login forex meaning forex pip calculator forex ranks forex reviews forex time zone converter forex time zones forex trading for dummies forex trading hours forex trading reddit free forex signals iml forex is forex trading profitable what is spread in forex best time to trade forex forex calculator forex candlestick patterns forex chart patterns forex com login forex correlation pairs forex day trading forex economic calendar forex for beginners forex session times forex stock forex strategies forex trader salary forex trading meaning forex trading reviews is forex legal live forex charts scalping forex us30 forex what is forex market what time does the forex market open when does the forex market open divergence forex forex com review forex factory news forex for dummies forex hours forex indicators forex market times forex pyramid scheme forex quotes forex sessions forex trading course forex trading signals

Iklan Atas Artikel

Iklan Tengah Artikel 1

Iklan Tengah Artikel 2

Iklan Bawah Artikel