Thursday, 2 February 2012

Calm Trading

A while ago I met an options trader through a very curious quasi mystical group who were into other worldly things. This trader was offering his services too but after chats with him, I figured I was doing ok. He went through a rough patch with trading,and we drifted apart,but he had a website about CALM trading-and that is something I have always tried to achieve,and I think I am getting there.
so why should trading NOT be calm?
start here:
1. poor preparation
2. No exit strategy
3. No clear entry strategy
4. No money management
5. No understanding of risk
6. Failing to do a 'what if' scenario.
7.Trying to trade news(which is too old to be of use by the time you get it)
Gambling is doing any/all of the above and is for thrill seekers.
Traders are seeking to make money from the markets,for thrills I like cycling no hands with my eyes closed(not on main roads). I get a buzz out of my other life too-which is about helping people,the key to a happy life so it is said.
We are all of us guilty of impulse/revenge trading and sometimes we have a tiny influence on the market,but that is not why we trade. emotions are for the other parts of our life and an emotional response is usually the worst response to the risk, unless you are on fire or fleeing from an enraged tiger.
I get a lot from mentoring,and hope to establish one day a small group who make money and live a stress free trading life.

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