The easiest way to fix the "i have to be green every day" mentality is to trade the way a lion hunts. Lions:
1 dont hunt every day
2 prey only on the weakest of the herd
3 know when the battle is lost (they dont try to be heroes)
What is that in trading language?
1 dont hunt every day
2 prey only on the weakest of the herd
3 know when the battle is lost (they dont try to be heroes)
What is that in trading language?
1 Lions dont hunt every day:
Hunting too much burns way too much energy. Instead they focus on rare but easy opportunies, binge eat, then rest. In trading, that is simply waiting for the best setups and CAPITALIZING on them instead of piking. Piking ALWAYS leads to overtrading.
Hunting too much burns way too much energy. Instead they focus on rare but easy opportunies, binge eat, then rest. In trading, that is simply waiting for the best setups and CAPITALIZING on them instead of piking. Piking ALWAYS leads to overtrading.
2 Lions hunt only the WEAK
Contrary to pop belief, lions are actually LAZY hunters. They focus on the weakest of the herd. the babies/injured. Why? less risk of injury, less energy spent. For trading, focus on the EASY setups, let others get gored trying to nail tops & bottoms
Contrary to pop belief, lions are actually LAZY hunters. They focus on the weakest of the herd. the babies/injured. Why? less risk of injury, less energy spent. For trading, focus on the EASY setups, let others get gored trying to nail tops & bottoms
3 Lions know when the battle is lost.
You ever wondered why lions dont even bother running towards a gazelle at the water hole? b/c they know that their edge lies in AMBUSH. They're not fast enough, so once they're spotted, they dont even waste time trying to chase the gazelle.
You ever wondered why lions dont even bother running towards a gazelle at the water hole? b/c they know that their edge lies in AMBUSH. They're not fast enough, so once they're spotted, they dont even waste time trying to chase the gazelle.
Same reason why they avoid hunting elephants, rhinos, or hippos. Yes, they know that the reward is HUGE, but they also know that the RISK is even greater. So they "stopout" & move on. In trading, that is realizing that NOT EVERY BATTLE HAS TO BE WON, NOT EVERY DAY HAS TO BE GREEN
In conclusion, focus on trades that give u the BIGGEST reward for the SMALLEST risk. If your max loss (1R) is $100, aim for $300-500 wins 2-3 times a week. It's MUCH easier to manage risk when you know that ur average win typically erases 3-5 consecutive losses
#BearTIpOfTheDay
#BearTIpOfTheDay
