Thoughts on Risk Management

[oilman5]

Trading starts with excesses.........excess knowledge/excess time/excess money.
3places u have to fight..............self/other traders/market.
Your other life.......should not fight with your trade learning life,this environment is imp.
then comes choise of system /strategy/timeframe.
variable market condition.......up/down/volatile/nontrend small move .
Which one to be done by you.......as per ur expectation......buy/hold/sell.
What price is telling u to do? .....buy/hold/sell
Now understand to prepare trade journal.........its tool of tuning,understand what u r supposed to do vs what u have done actually.
What is ur info source......can u nullify any hearsay from market..........your decision making skill should not be variable.....it must be sharpen constantly.
how u handle stress generated out of trading.
ALL this must be writen and followed just like breathing, then u r a trader.

 

[linkon7]

Trading starts with excesses.........excess knowledge/excess time/excess money.
3places u have to fight..............self/other traders/market.
Your other life.......should not fight with your trade learning life,this environment is imp.
then comes choise of system /strategy/timeframe.
variable market condition.......up/down/volatile/nontrend small move .
Which one to be done by you.......as per ur expectation......buy/hold/sell.
What price is telling u to do? .....buy/hold/sell
Now understand to prepare trade journal.........its tool of tuning,understand what u r supposed to do vs what u have done actually.
What is ur info source......can u nullify any hearsay from market..........your decision making skill should not be variable.....it must be sharpen constantly.
how u handle stress generated out of trading.
ALL this must be writen and followed just like breathing, then u r a trader.

simply wow...!:thumb:
please do go on.... :clap:
i keep waiting for new post from you everyday....!:clapping:

 

[vijayvaliya]

linkon,

oilman is your friend and thinks the same lines as you do.

 

[linkon7]

linkon,

oilman is your friend and thinks the same lines as you do.

Oilman is a highly respected senior... He has seen it all....
I'm just a 2 yrs old in front of him...

 

[AW10]

Trading starts with excesses.........excess knowledge/excess time/excess money.
3places u have to fight..............self/other traders/market.
Your other life.......should not fight with your trade learning life,this environment is imp.
then comes choise of system /strategy/timeframe.
variable market condition.......up/down/volatile/nontrend small move .
Which one to be done by you.......as per ur expectation......buy/hold/sell.
What price is telling u to do? .....buy/hold/sell
Now understand to prepare trade journal.........its tool of tuning,understand what u r supposed to do vs what u have done actually.
What is ur info source......can u nullify any hearsay from market..........your decision making skill should not be variable.....it must be sharpen constantly.
how u handle stress generated out of trading.
ALL this must be writen and followed just like breathing, then u r a trader.

Wonderfully structured, to the point message.
Oilman - hats off to you.

I am developing the skills to read words.. and not wait for sentence /paragraphs.
Each word of your post can easily turn out in a para easily.

I like your style of writing. Waiting for more such posts.

Happy Trading

 

[vijayvaliya]

"toughest learning is switch from one timeframe analysis to another time frame...."
can you explain this a little more?
ya explaining it.
Ans : In normal 3 yr of learning ,all novices start to learn some method of entry, may be long term......bull entry, may be intraday.......% move and then profit book, similarly some swing buy.....like buy in pullback ie.bottom of a cup pattern.
Soon ie. after 3yr , its not suffient to earn from market is now known to him.......unless by God gifted luck he had made enough and left out Market.
So other method . other timeframe play, other forecasting idea like.......fundamental.ta or psychological + bookish random variable entry/exit system.....quantum method/fractal theory.........r read and variable strategy for different market condition which one to be applied.............r practiced for mastering.
Another problem is to fit ,where he fits naturally.........thats timeframe and style gives higher return with better strike rate.
In this search and learning ,he found out........its difficult to erase ......first pick up learning , it may be say break out play. So he has learnt it early......its with him now,........so even after 7 yr , .....if he finds a break out play in present market condition with poor probability , he may actually trade it only to lose money ,.......as he enjoys the thrill of early learning days.SIMILARLY its the time frame,.........many trader starts early as investor,........that backgroud stops not to trade at certain condition, because of complex RISK..NONO. THose who starts strong as dealer,......can not hold a 3day profit run..........knowing fully well it will move another 15% ,but block with condition of max 5%profit book, more than that u r greedy,,,,,,,,scalpers curse.
Similarly a trained swing trader of booking around 10-12 % profit ,.......can not move down to 3-5 %profit in random time frame mode so easily.
YES IT IS THE HARDEST THING TO DO

Very nicely explained sir, I feel in the sum total experience is the key

 

[oilman5]

Journey of a trader starts from novice to beginner to advance level to expert. then comes Master.Now between advance level and expert.............its really very slippery,.......i forgot to count how many times i flawed........mostly when i think i know market..........i am humbled to basic.........fortunately like cat has 9 lives........again i move. Humilation ,to face it........discipline ,recoup energy and walk again.....is i posses as trader

 

[oilman5]

this time i have to learn..........portfolio management........yes i dont know it

 

[vijayvaliya]

can you share your thoughts on portfolio management?

 

[sumosanammain]

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