Stanford '04. former pro golfer, options trader, runner, sports fanatic, foodie, fur mom.. Bring it! You may recognize me from Golf Channel's Big Break XI: PEI.
5 Trading Lessons to Improve Your Trading Tomorrow ✅
Lesson #1: Master Yourself
Achieving consistent success in trading and life requires a strong and stable mindset. Emotionally-driven trading mistakes, such as FOMO and oversizing, can be avoided by staying calm and composed. Identifying your weaknesses and addressing them is crucial in building the right mindset. Keep in mind that a compromised mind leads to compromised trades.
Lesson #2: Prioritize Risk Management
Don't focus on profit potential alone. Instead, consider the risk associated with a trade before entering. Accept all possible outcomes to trade with clarity and confidence. A well-defined trading plan and acceptance of risk put you in a position to succeed. If a trade goes against you, emotions won't impact your decision-making process.
Lesson #3: Take Profits/Losses Methodically
Many traders let profitable trades turn into losing ones by holding onto them too long. Avoid this by systematically taking profits along the way, rather than holding out for unrealistic returns. Base hits will help your account grow more steadily than always going for home runs.
Lesson #4: Stay Grounded
Winning streaks can lead to overconfidence and irrational decision-making. Regardless of whether you're winning or losing, staying grounded is key. Never let a series of losing trades impact your account drastically or change your trading career's trajectory.
Lesson #5: Patience Pays
As a trader, your goal is to seize opportunities when they arise, not to trade every day. Waiting for the right moment to execute trades is essential to grow your account. Never forget that cash is a position, and you don't need to trade every day to make progress.
Summary:
- Focus on maintaining a strong and stable mindset
- Prioritize risk management over potential profits
- Take profits methodically to minimize losses
- Stay grounded to avoid making irrational decisions
- Patience is key to seizing opportunities when they arise
Don’t be afraid to chase your full potential. You are your only limit.
According to NAAIM, the most bearish active managers are the most short they've been on US stocks since the beginning of the Russia-Ukraine conflict. Also note the dispersion in conviction--the bulls are very bullish while the bears are very bearish. Both can't be right...
$SPY Weekly 😘
Top of the grey line = when fed presidents decided it was unethical to trade
That bear trend resistance looks like it’s acting as support with building volume. Can still break either way but have a bullish bias with previous resistance acting as support