"~ On Risk Management ~
Trading management is just as important as stock selection.
Think about the risk versus reward before taking any position.
Capital protection is always the top priority.
Cutting losses is the holy grail.
Don’t play chicken using mental stops. Set hard stops and manage the risk.
Avoid large losses always. Keep losers small and you can survive anything.
No edge means no trade.
Sitting on your hands can often be the best trade.
Don’t participate in the market, just to participate. Make sure the conditions are favorable to your method of trading.
Only losers add to losers.
I used to be an all in and all out trader, but scaling methods have improved my performance.
The trick is to get on board and stay on board until the trade fails.
Limit the number of trades you make every day forces you to be choosy and place better stops.
When you are up the most is when you are most likely to break your rules.
When having trouble dealing with the market, reduce your position size and raise cash.
Proper position sizing is key to risk management.
Without taking risk, there is no reward.
~ On Strategy ~
Keep it simple. Simple works.
Trade what you see not what you think.
Learn to think for yourself. Trust your gut.
A good trading system must fit both my strengths and time limitations.
Follow the price trends rather than the pundits.
Less is more. Learn one “bread and butter” strategy and trade the hell out of it.
Be calm, have a plan, and ride it out through the rough times.
Trying to pick tops is a sucker’s game.
You must fight the feeling that you have a good idea of which way the market is headed.
When you become an expert of one basic simple trade, results can be truly outstanding.
Let your setups come to you – do not chase. There will always be another day, another setup.
Don’t overtrade. It is the sitting that makes the difference.
Your analysis must involve multiple time periods.
The more time spent at the keyboard, the luckier I get.
Keep your universe of stocks to review small. Only work on a limited number of instruments until you have mastered your strategy.
- Continued:
- http://www.kirkreport.com/category/freereports/page/2/
No comments:
Post a Comment