Ha 2016 liquidating trust
Many traders misplace their stop losses by placing them at the wrong levels, and they are often too wide or too tight.
Stops can’t just be placed randomly nor placed based on the position size you want to trade, they need to make sense and be in the context of the price action trade signal / setup and also in the context of the current market dynamics.
He has a monthly readership of 250,000 traders and has taught over 20,000 students. We’ve all heard that only about 10% of people make it in the trading business, so how do they do it? I know that for me personally, the biggest ‘ah ha’ moment in my trading career was when I realized that I could dramatically improve my trading results by simply being more patient; by waiting for only high-probability ‘absolutely obvious’ trading opportunities.
What is their mindset like, what is their trading process and routine like? In today’s lesson, I am going to give you some insight into these questions that will hopefully be the catalyst for a significant improvement in your trading performance. Many beginning and struggling traders do not realize that trading less often will typically increase their overall profit factor, and the more patient and precise you are with your trades, the more control you have over your trading and that means you can ultimately extract more money from the market.
The amateurs and ‘worst’ traders we shall say, tend to jump in right as trends are ending because it’s at this point that they are feeling the fear of “missing out” on the move…because it has come so far and looks so good…but this usually about when it’s ready to end.
As markets trend, they weed out stop losses and create position liquidation or position covering that pushes the trend further, it’s a natural phenomenon that contributes to the self-fulfilling aspect of trends.
There is more in my course about stop placement for various trade setups…
Great trends are often self-fulfilling, meaning they tend to continue higher or lower, often just by the very fact that the longer they persist the more traders jump on-board, until the very weakest hands are on-board right before the trend comes crashing to an end.
Great traders need to back themselves and have the tenacity to take risk and handle the emotions that come with it.
Each trade takes careful planning, and if you are cutting corners or looking for ‘short-cuts’ or even just being lazy, I promise you that somewhere some other trader is not.
You need to be sure you’re doing everything you can to put the trading probabilities in your favor, this is the only way you can ‘outsmart’ and preempt your opponent, because I can guarantee you the approximate 90% of losing traders are NOT doing everything they can to put the trading probabilities in their favor.
A very important factor in your long-term success as a trader is CORRECT stop loss placement.
Whilst stop losses are a necessary risk management tool, they are also the reason a trader gets stopped out of a trade for a loss; because there stop loss gets hit.