-Overtrading
-Analysing TOO much of data
-Forgetting SL
-Risk management
-Overconfidence after homerun
-Following gurus BLINDLY than doing homework
Friday, 18 February 2022
Don't memorize patterns, candlesticks, and etc.
If you want to get better at this game, ask yourself:
What are traders on the sideline thinking?
Where will other traders get trapped?
Where’s the path of least resistance?
Where will new players enter?
Where will losers cut loss?
Trading tip: Have multiple sell rules to exit a position:
1) Exhaustion: If the stock is exploding to the upside.
2) Gap up/down: Sell into strength/weakness.
3) Normal: If you have a perfect trend.
4) Not moving: Sideways a long time.
5) M&A: You need a plan for that.
5 trading rules from Paul Tudor Jones
1 Don’t ever average losers
2 Play great defense, not offense
3 Markets move sharply when they move
4 Don’t focus on making money; focus on protecting what you have
5 Look for opportunities with tremendously skewed reward-risk opportunities
If you are retail option trader
If you are retail option trader who mainly focus on naked option buying then follow this Simple rule.
Never buy a put option if price trades above previous day high.
Never buy a call option if price trades below previous day low.
This rule will save you a lot.
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