Old Soldier's Comment
"I follow a pretty strict Risk Management and Trading Process:
1. Never risking more than 1-2 percent of my Portfolio on any one trade - EVER!. I do this through my technical analysis and risk planning prior to the entry. No entry until the exits are planned. I use only mechanical stops, limits, etc. No emotions this way. Once set - they are set! I have learned through costly experience that when I have adjusted the stops or limits I have had either smaller profits or greater losses. No matter what! I use and trust the mechanical "servants" over my human "emotional" mind. Some use what they call "mental stops", I disagree with this method - life happens. Network connections go down, distractions appear out of no where, markets crash unexpectedly, etc...
2. Keep entry points at viable areas to maximize gains, always selling half my shares/contracts (always play even number of contracts: 2,4,6...)upon reaching my initial target point. If I "leg" into a trade then I will treat these additional contracts as new plays and treat the them the same way.
3. Always placing a pertinent trailing stop on remainder of shares/contracts based on the ATR and prior support/resistance levels.
4. Never complaining about taking profits even if the stock continues to move after my exit (why complain if I achieved my goal and met the conditions of my plan?). It is not profits until you sell - on "paper" doesn't count.
5. Maintain viable watchlists and playlists.
6. Follow a strict daily routine for all areas of my trading. This is a business NOT a hobby.
7. Keep my focus!!! I try to balance my trading with all the other areas of my life. To do this, I try to make every move count. Worry is not an option - no pun intended. To worry is to be distracted. ALways remember this is a business it is not a game.
8. Always help someone along the way! I got here because of some other really good people who gave of their time and experience to me. Always be willing to learn - when we stop learning we stop living!"
Thanks Old Soldier! I've always feel that blogging is about sharing and learning. So don't be shy to drop me a comment anytime, I welcome them.