YS

[YS @toastreturns]

@jfsrev Saved by 30min rule 🙏🏼 was hovering a buy stop above the 30min candle

[YS @toastreturns]

@StillPoolTrades @BrianLeeTrades I have been thinking about this as well. I still allow the market to take me out 1/3 or even 2/3 until the ticker proves strength .I will then add new positions in and protect with 1/3 stop loss on the new positions. Took this from Phantom of the Pit

[Celestara @celestaracosmos]

Your normal day is someone’s dream so be thankful everyday.

[YS @toastreturns]

- The Strangest Secret

[YS @toastreturns]

It is easier to look greed and fear in the face with the proper frame of mind. You have to be your own motivation expert in your trading. The motivation must be tilted toward the rewards of keeping big losses out of your account

-Phantom of the pit

[YS @toastreturns]

Shall take a wait and see approach after the downgrades on the US credit ratings. The euphoric rally could easily get pullback which will again provide us an entry area for an easy $ environment

[YS @toastreturns]

@traderwillhu Thanks, @traderwillhu. got the idea to add the macro calendar to my daily dashboard from you. Cheers

[YS @toastreturns]

"Many shall have to face the aspect of human nature to oppose any change. Change is required, and you are the only one who can do it. Your trading career depends on it."

[Market Rebellion @RebellioMarket]

You must watch:
#1: CUT YOUR LOSSES.

[Jay Yang @Jayyanginspires]

This quote from Steve Jobs lives rent free in my head...

[Sahil Bloom @SahilBloom]

Everyone needs to hear this…

[YS @toastreturns]

“In a losing game such as trading, we shall start against the majority and assume we are wrong until proven correct! Positions established must be reduced and removed until or unless the market proves the position correct” - Phantom of the Pits

[Clement Ang @Clement_Ang17]

30 Jan 2025:
On Dealing With Drawdowns:

[YS @toastreturns]

@TedHZhang @Deepvue @CrystalTaemin

[YS @toastreturns]

@jfsrevg @tradingview Merry Christmas and a Happy New Year!

[Jeff Sun, CFTe @jfsrev]

The Benefits of Maintaining Fixed % Risk Relative to Equity for Long-Term Trading Success

Discipline and patience are crucial in trading to facilitate the compounding of returns, as supported by the law of large numbers. Compounding can be achieved through a straightforward risk management principle: Maintaining a fixed percentage risk relative to equity.

In the two-line chart below, I simulate the outcomes of 1,000 trades, showing consecutive 1R wins and -1R losses based on the simple principle of maintaining a fixed 0.3% risk relative to realized equity. This approach can propel your equity in a parabolic trajectory during a strong winning streak over a large trade sequence, while a losing streak results in a gradual decline as the dollar risk per trade adjusts automatically in line with the %-to-equity principle. Additionally, you get rewarded to increase/reduce risk in an automatic based on your trading performance without discretion. This risk principle carries a minimal risk of ruin at just 0.01%, making it highly valuable for testing strategies without the need to top up your trading account.

Account Start: $100,000
Risk to Equity: 0.3%
Dollar Risk (Start): $300

After 1,000 Trades
Risk to Equity: 0.3%
Dollar Risk (End For Win Graph): $1,337 (+$1037)
Account End: $447,164 (Gain +$347,164)

Dollar Risk (End For Lose Graph): $67 (-$233)
Account End: $22,263 (Loss: -$77,737)

I hope this post serves as a reminder of two key trading principles that are often overlooked in the context of long-term success: 'Treat trading as a business, not just a series of isolated trades,' and 'Focus on the process rather than the outcome of individual trades.'

Do retweet of you find this post helpful.