Whilst drawing up the trading plans I analyzed edges, key price levels, expected profits/losses, trade management, probabilities etc. After the trade has been executed, I became obsessed with the P/L (profits and losses). Traders who focus on the P/L will likely swing with changing short term accounts of the market environment. They will lose focus of the overall picture […]
An old friend shared how discouraged he was with not being able to manage his impulsive trades. That evening we decided to observe how he traded the US session. He certainly was hard working and eyeballed every 5 minute bar. He had a reasonable trading strategy, but on several occasions strayed from the original plan, and “analyzed” various opportunities on the fly. Quite […]
The Beginning Trader A few days ago, my friend (a reasonably new trader) was lamenting over his losses and mistakes. He felt miserable. If not for his naturally glowing persona, I presume he would have fallen into depression. I wish I could help him, but really I couldn’t do more than lend him a listening ear. There is no secret to […]