Executing Trades Properly When Trading
Trend following is not easy. Millions are not made easily in up and down markets. This is only to sell books…
Trend Following is about having a thought out plan that you can follow…I can promise you …It is not EASY!!!!
The only way to execute trades properly is to know exactly how much you are willing to lose on a trade before hand. This amount has to be negligible for you. Trading in this fashion a loss does not cause you emotion distress. Any losing trade causes no pain and thus you are capable of putting on the next trade without any hesitation. Basically you become more interested in following your trading plan and your trading rules than the money itself. This really is the ultimate goal. Successful traders think that trading is a game. They attache no monetary significance to the trades. I know this is a fathom leap of trading development however accepting small risks put you on the path of successful trading.
Another massive issue is accepting that any trade does not have to work and that your money will be made over a long series of trades…You grind it out. You can not quit when you go through the inevitable draw downs. Draw downs can not be prevented….
Execute your plan…keep your risks small and you are on the path to potentially compounding money over time
Past performance is not indicative of future performance