The less I trade the more money I make by avoiding trades taken from impatience and boredom and focusing on good set ups.
All my biggest profits were made on option contracts I bought not ones I sold. Option contract asymmetry favors option buyers while winning percentage favors option sellers.
My number one job as a trader is to manage risks and keep the capital I already have not make money.
The best traders in history were the best risk managers not the best at entries and exits. The traders that survived to be the big winners were able to accept when they were wrong and exit a losing trade.
The ability to admit you’re wrong about a trade & get out is more important than being confident in a wining trade & staying in no matter what. The risk of ruin is greatest when you have conviction about a trade & can’t accept when you’re on the wrong side of a strong trend.
Winning traders think like a casino losing traders think like gamblers. What is the best way to make money in a casino? Own the casino. Casinos are profitable because they have a mathematical edge that plays out over the long term as long as they have table betting limits.
Opinions, projections, and predictions are worthless, trade the price action. Good trading systems can only take signals in the present moment. The future does not exist yet.
At times market fundamentals can be good filters for a trader but they are always terrible masters. Price trends where it wants regardless of fundamental valuations.
Only date your stocks but marry your risk management. Stocks are only good if they’re going up. Same for cryptocurrencies.
The smaller and more focused my watch list the better I trade what is on my watch list because I know the backtested price action and the historical charts very well.
Have you discovered any other trading paradoxes on your journey?