The Most Underrated Topic in Trading: Trading Management (Part I)

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.

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Issue with technical analysis and solution to overcome them

I always received this question when meetup with other new traders, who asking about the best way to find entries and which technical analysis strategy should they used.. And my answer is always the same: it does not matter; every system can be profitable. Entries don’t matter.

Below is a great article written by a trader called Rolf and his sharing totally resonate with my thoughts.

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How to identify a trading edge & the realistic path of a trader

Every week,  Aaron Fifield will interview different traders to extract their best insight.

I will be sharing with my readers one of the best video by one of the well respected trader in traders circle- Adam Grimes.

If you are still struggling in your trading or you maybe already doing quite well in your trading, this insight will still help you in one or another way 🙂

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Less is More – 10 situations when not to trade

Hunting signals, looking for a cross on your Stochastic, waiting for the pinbar to finally print, hoping that the gap will close and anticipating that support will hold – this is trading. Wrong. The reason so many traders fail is because they are always trying to get in the next trade whereas all they should do is find reasons to trade less.

If you don’t believe us, just wait until you arrive at the end of this article and you will understand why trading less and knowing when not to trade is the skill the professional and profitable traders have perfected.

“Money is made by sitting, not trading.” – Jesse Livermore

 

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A Forex Trader’s Biggest Lesson For Life: Stop Comparing Yourself To Others

It is Friday! Happy T.G.I.F everyone. It has been a while since i written any post as I just back from Korea trip and complete a crazy week after BOJ and FOMC annoucement, barely sleep for 4 hours everyday. Finally I can have some good rest too, hope you too 🙂

So this time I am going to share with you a good article from a trader where his first post appear in huffingtonpost. I can’t agree more with his stand in this post.

So let’s read! 🙂

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