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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Four stages of competence

I still remember when I started learning  guitar, I struggle a lot. Unlike my friends, they pick up the skill in a such an easy way, they just need to do some google+ing and youtube+ing and bingo, they just know how to play.

Due to my persistent temperament, I have this die die must master it mentality, in the end, I spend hundreds of dollars to went for guitar courses, to discover what I don’t know, I don’t know.

Then, I realized in the process to master a skill, there is this four stages of learning/competence.

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How I manage to break-even my 80% drawdown and trade for living

Sometime I will see new Forex traders a bit discourage perhaps they are still having drawdown after trading for few years. It seem not hard to understand, when i am new to Forex trading (I am still new by the way :D), I always see how people brag how much return they made (they talking about few hundred percent return a year). How people share their 5 digits profit screenshot and how they made Forex trading look like a no-brainer thing. This lead to newcomer to think like why other people do it like so easy but it is so hard when we are the one who doing it.

Also, some traders become skeptical after trading for years and wonder is it Forex is entirely a scam or is it a financial instrument that really can help us grow our wealth.

I totally understand that, their doubt, because once I am just like them. Please allow me to share my story on my Forex trading journey.

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