Master the art of trading Simon Brown 18 th September 2012.
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Transcript of Master the art of trading Simon Brown 18 th September 2012.
![Page 1: Master the art of trading Simon Brown 18 th September 2012.](https://reader031.fdocuments.in/reader031/viewer/2022012914/5a4d1b6a7f8b9ab0599b2db0/html5/thumbnails/1.jpg)
Master the art of trading
Simon BrownJustOneLap.com
SimonBrown.co.za@SimonPB
18th September 2012
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Trading is easy
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Stages of a trader•Unconscious Incompetence
•Conscious Incompetence
•Conscious Competence
•Unconscious Competence
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Losing money
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Being wrong
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Desire•To be right
•To confirm ones view
•To get positive feedback from the market
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External fearCaused by something outside of you which you are strongly motivated to avoid.
Example: being wrong, losing money
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Internal fearSomething inside of you that you link to a negative emotion.
Example: being wrong, losing money
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BUT•Life rules and trading rules are different
•We are wired for life rules
•Have to wire ourselves for trading rules
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What to measure•Measure success by what we can control•Discipline•Consistency•Monitoring trade•Exit (stop loss)We can not control winning or losing
trades
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How to measure•Generate trade•Determine exit strategy•Determine trade size•Enter on confirmation•Monitor trade & stop loss•Exit as planned•Keep a journal
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What to loose•Losing trades are a fact of trading, a cost of doing business•Start up capital
•Be comfortable with the potential loss before you enter
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What to loose•Stop loss determines Rand risk per trade•Be comfortable with this
•Worse case of 20 losers in a row?
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How to trustDiscipline requires trust•Eyeball the system on a chart (at least 20 trades)•20 paper trades•20 real trades with small amounts
•Than the real deal
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Greed
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Further reading•Trading in the Zone•Mark Douglas
•Mind Power•John Kehoe
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Re-cap•You can’t trade with fear•Know how to measure•Accept potential losses•Trust your system
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?
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Master the art of trading
Simon BrownJustOneLap.com
SimonBrown.co.za@SimonPB
18th September 2012