Too many times on social media I get feedback from traders that misunderstand how I trade. Many times they even show that they do not understand what successful trading even looks like. Sometimes they are just lashing out because they were trading against me and do not understand how the market did not follow their logic. Other times they think trading is about ego, emotions, and perfection. Here is my attempt to clear up five areas of my trading:
- They do not understand what robust entries are, they think my trades are based on opinions and ‘calls’. My entries are based on chart studies and back tests not ‘feelings’.
- Confusion arises when they think that I care about any one trade being a winner or a loser. I trade small enough that every trade is just one of the next 100. I understand that I do not always have winning trades so I make sure my losers are small through position sizing for volatility and placing my stop at the level I know I will be wrong.
- There are traders that think I get emotionally involved in trades. I don’t, I run a business I am not a gambler in a casino I am placing trades against the gamblers that are on losing streaks.
- My total risk exposure is small enough that even sharp moves are not devastating to me. Most the time I have on between one and three trades with little risk exposure. There is no reason to worry about me I will be fine.
- During losing streaks and volatility I trade smaller and smaller so I am at my smallest position sizing when I am losing and my biggest when I am winning in a strong trend.
