Trading to win using the Secret Code of the Illuminati

I don’t know
Risk and Reward

Risk and Reward

I don’t know, and I don’t need to know where Mr Market is going tomorrow.

The only thing I do need to know is where am I willing to take a risk, and what am I willing to risk.

Of course, targets and partial targets are also nice to know. That is part of our system, and as a day trader, I seek these short term imbalances and fleeting opportunities.

On good days, they are plentiful, and I guess right. I make money.

On bad days, I guess wrong and overtrade trying to get in synch with the market gyrations.

On really bad days I violate my rules and if I am lucky, I get punished.

Why lucky? Because I need to have the consequences of my bad decisions hammered home to me until I no longer feel a need to break them. Violating my rules and getting rewarded for it only trains me to be sloppy and lose respect for the market.

Taking a calculated risk and placing a trade is what we do for a living. Being wrong is no problem; CONTINUING TO BE WRONG with my decision is definitely a problem.

That is something I do know.

Tagged as: , , ,

Comments are closed.