Whenever people ask me about my trading performance and I told them I am able to generate 10% and more a month, they will full of surprise and doubtful. “What strategy you use for your trading”, “How did you do that?”, “Are you trading using price action?”, “You using F.A and T.A?” … and the list goes on…
However, I seldom hear people talk about topic regarding trading management. You can do some googling and you can easily find all kind of strategy like Elliot Wave, Harmonic Pattern, Price Action, Swing Trading and the list goes on.
Unfortunately, not a single trading management is covered. This puzzled me as trading management play a big role in my trading. You might be wondering now, what is so big deal about trading management.
Trading management is the application of knowledge, skills, tools, and techniques to maximize your return with lowest risk and lowest cost in shortest period of time.
Have you ever wonder why we venture into trading? If what we focus is about profit then before we venture into trading we might as well look into other alternative that is less risky and can fulfill your profit expectation.
For example, become a Grab or Uber driver can potentially provide you 700 to 1,200SGD per week. Someone make an analysis and breakdown here which you can understand more on their revenue generated become a full time Grab or Uber driver.
So before you jump into trading with excitement and high hope, you might want to take a step back to understand what you are getting.
So am i just going to pour you cold water and just stop here?
Don’t worry! I won’t.
What I want to point out is that if you are a profit seeker, there are always alternative as this saying goes, “all roads lead to Rome”
However, if we put trading management into perspective. You will be surprise how it can lead you to understand why trading is so lucrative and outstanding compare with other options.
Trading management is not just about technique and strategy to manage your trades, it is much more than that.