Applying this concept to your trading will be one that will really help you move forward!
But only if it's done correctly.
So firstly, what do I mean when I refer to time and space in trading?
Think of TIME in three ways…
1- The TIME you have been trading
2- The TIME you spend trading
3- The TIME you are in trades for
Think of SPACE in three ways…
1- The SPACE you give between each trade
2- The SPACE you give between the action you take and the results you get
3- The SPACE you have between your actions and emotions
Now before you think I have gone way out there, let me break this down into one concept.
1. When it comes to the AMOUNT OF TIME - most traders are expecting results over too SHORT a time frame.
2. When it comes to FILLING OF SPACE most traders are presuming and thinking the wrong things about what is hindering their progress.
Here is an example...
Joe the trader thinks "I should be making money by now!" even though it's only been three months since he started.
But he says to himself, "I am doing everything right"
So the three challenges he has are...
1- How does he know he is doing everything right, who is checking?
2- If he is doing everything right, how does he change his time horizon to be more patient?
3- How does he change his perception that doing everything right in the short term, doesn't always mean short-term results will follow?
Simple...
Coaching and feedback
But even more importantly...
Coaching and feedback from someone who understands this process a trader goes through
And lastly, if you are reading this ask yourself the following to help
1- Is the strategy I am trading proven to work over the long term?
2- I am doing exactly what I need to over the long term to make it work?
Until next time.
Trade safe,
Alright… Not one of the most exciting subjects we have ever covered, but definitely one of the MOST important.
Risk management is something so many traders “think” they have locked down, but actually what they are doing is taking themselves down a road of no return.
Both for them and their account balance.
And what’s worse…
There is a group that simply overlooks risk altogether, or takes some one-time advice that is usually completely inappropriate for them and the way they trade!
So how do you make sure you not only know what to do when it comes to risk management, but you ACTUALLY do it?
First Off…Know Your Numbers
Yes, it’s a small bit of maths, but knowing the simple multiples can save your account balance!
Let’s say you are risking 10% of your cash pot per trade.
But that only requires a 5 trade-losing run to be the best part of 50% down overall.
Oh well, I still have half my money.
Hang on!
You now need a 100% return on that balance JUST to get back to where you were 5 short trades ago.
Let that sink in for a second…
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