Your Trend Following Course is Great- Can I Prevent Losing Trades?
Yes…actually I had this conversation with a trader who wanted one one one mentoring. He started the conversation as
“Your Trend Following Course is Great- Can I Prevent Losing Trades”?
To his absolute dismay, I told him yes…the only to prevent losing trades ( trades that do not work) is do not trade. He was shocked. He asked again…really is there a way to prevent losses…or maybe just a couple? I told him no…there is no way. The goal is to try to keep them small…however anything can and will happen. There will be gaps…there will be positive earning reports and stocks go down. We are dealing with complete uncertainty.
He is not alone. I have recently spoken with a Hedge fund group who to some degree also wanted to improve their trading and to as they called it negate some of the uncertainty. We must accept the absolute fact that many trades will not work…that one does not need to know the future. The key is what I do teach as I do it every day since 1994. I teach consistency, I teach discipline, I teach patience, I help to develop a trading plan.
Trading is not easy. It has to be one of the hardest things to do, let alone succeed over time.
If you are looking to improve your trading, I offer a 1/2 hour free consultation to see if I can really assist you. In cases as in the above I would not want to take on a client like this. One must have realistic expectations in order to learn…
Email me if you would like to arrange a time to speak…