Focus on losing less on my worst trades. Systematic, stick to my rules and move forward. Cut my losses quickly. Remembering my why and reviewing each trade in my journal.
Trade less is a very important concept that I need to work on. I still seem to make mistake of getting 2-3 good trades in first thing and then give it back by getting cocky and sloppy. Discipline and only the best set-ups while not adding to losers are all key concepts that I am continually trying to master. Thanks for all you do for the trading community. It has made a huge difference in my trading.
Steve, You are the intellectual of SMB! You sound like my college professors as you articulate the fine points of elite trading. I'm strictly an options swing trader. I hate intraday trading; it makes me feel like I'm driving in a thick fog and can't see past the hood. My goal is to get to flat. Ever since I read "The Playbook", I realized that I didn't know what I didn't know about how important it is to get to flat. I'm trading less, AND being more systematic about the set ups I commit to.
Great video Mike ..makes you realise there are two sides of trading you have to Master if you want to be a great trader .. Getting In and Getting out! Sometimes not trading is your best trade! Good to hear from you again Mike! Keep em coming!
Absolutely love,love your education to finding strengths and weakness and most of all the desire to become more efficient and productive. Thank you for posting these videos.
I believe trading less Is basically relative concept. Better word should be trade as per your strategy. To get the probability in your strategy you have to trade more. If your strategy says to take 3 trades per day then you should not take two.
Thank you. One area I want to work on is developing an appropriate profit taking strategy that involves taking partial profits at a particular point and then coming up with an appropriate trailing stop for the other half. I have been studying quite a bit in my goal is to become an excellent option swing trader using the week ways on highly liquid indices and stocks and etf's. Maybe I need to hook up with the techie type person and do some back testing and experiment with some different strategies?
good advice, I am constantly looking back to my trading journal and searching for room for improvement. Some commodities tend to work better for me, while some brings challenges
optimising my entry points. So this really relates to minimising drawdown. Getting my long entries moving up away from my stops (and my shorts moving down).
great video. I have been struggling for a long time but have been "moving toward" these ideas (much too slowly). As a result, my confidence has been growing (much too slowly). This video articulates these ideas very succinctly in less than 20 minutes. Question: you reference methods to get out and/or avoid situations in which you get into a loss soon after your entry, add to your loss as the morning wears on, get increasingly complacent, arrogant, etc... only to finish the day with a huge drawdown. Could you please share a few examples of these methods?
As always - thanks for valuable info. Off topic question - Do you suggest for intraday trend traders to use only filtered blocks tape? I haven't noticed any trader to use unfiltered tape at crucial "see it on the tape" moments in your videos..
Awesome advice: trade less and draw down less are correlated in my opinion. Only trade your best set up. Lately I've noticed I could be done for the day before 10am. And also missing my entry is hard but should be accepted and not chase, cause it could be so destructive. Thanks guys!!
I'm currently working on all three ideas/rules. On the draw-down less, I have to remind myself if it is worth salvaging a loss, I need to sell out of it immediately and buy back in at a cheaper price when and if the opportunity arises and makes sense. In other words, I try to convince myself of the logic that buying it at the lowest price possible would make more sense than trying to average at the current. The crazy thing is, this is a fact and why the human mind wants to make excuses like "I got in to early" is confounding and I've done it myself and probably still will periodically, then I don't for a few months as I remember financial pain and emotional pain of a fool. Wouldn't we all like to buy it at the for sure bottom cheaper price right after the turn because we could get even more shares at the lower price than at the price we are about to pay and have paid? It's just better to get kicked out with a mechanical or discretionary stop immediately and the numbers prove it. Yet still, it happens.
I feel it for the Trade Less idea. Used to trade >10 trades per day in SIM & ended up wasting the efforts & times to manual record a week of trades into journal over weekends. I felt frustrated as I couldn't spend the time on studying tapes & backtest setups. I also can see significant improvements on P&L & getting calmer when trading.
im focused on being more systematic with one of my best trading setups. im focused on setting better rules for the setup and executing these rules correctly.
Thanks for another great video. It is really great to learn more from experienced traders to get better everyday . One question : does it make sense to start with a small position to feel the trade much better and to understand if you are on the right side or not. I remember Shark and Gman mentioned this in some old smb videos or smb blog that it may prevent big losses if you are wrong and if you are right you may bump up your size.
Ismail meşe sometimes. But other times there is the moment that you see when the trade will work. We say you SEE IT. And if so then you want rams risk on for the risk you allow that trade. More often you SEE IT and then pounce.
I am into currency automation, gives me 20 % a month, double entry (buy sell) martingale system, of course I have to avoid the long trends. Learning from SMB would increase my income even more
You are definitely correct that controlling excessive draw down is a critical component of success. My problem is that I get into a large draw down in a tic by tic fashion, i.e. I will give this trade idea a little more room and the underwater graph looks like a bomb 💣 hit it. I want to control this loss running better. I primarily run option credit spread trades on large indexes. These trades by their nature will produce larger losses when the market is on a run. Why not just close out and get out of the way? Preserve your powder for a chance at another turn in price.
Losing less. While driving I just realized that I should be putting tiers on for my move to move trades. Having a starter position on to see if I’m right in my idea( also serving as a buffer to my risk). Adding a second tier when the idea gives me positive confirmation. This should let me further skew the risk/reward in my favor as well as keep my mental bandwidth usage to a minimum by not worrying about large amounts of red
Implemented today. Very large win on ARWR short, as well as a long on /CL from Sunday. Thanks for the free coaching, I’ve recently started trading full time and SMB has helped cultivate my game with this free content.
Drawing down Less and Trade more caused by No Systemic trading in my worst trading. Please explain more about detailed information for becoming Systematic trading. Also analysis to discover some favorable Edges to a couple of stocks before pre-market. Thank you!
Great topic! Thanks for sharing. Utilizing a "systematic asset selection process" with technicals for timing and risk management for capital preservation is how I prefer to trade. The more accurate I am with identifying assets that are likely to provide the higher volatility that traders love, the more precise my entries and exits can be along the curve. What I love about my results is the feedback it provides of how well I'm executing on the process. I believe frameworks [systems] are generally more adaptable to different market conditions than rule-based strategies, alone. However, in my experience, strategies that are informed by a systematic process often lend more conviction to a trade than one might have without it, though to be clear that isn't necessarily license for high volume/drawdown rates. Less trading and drawdown are more desirable to me now because the entries and exits are deliberately more precise than they used to be along the [distribution] curve. Some are better at trading around the middle of a range. Some are better at trading near its extremes. It all depends on market conditions, institutional mandate (where applicable) and individual preference, I suppose.
I need to do all 3 because they are all in my psychological block trading, all 3 are my kryptonite , otherwise, I would be consistently profitable now.
Trade less...be more patient and follow the path of least resistance. I do not know why but I have a tendency to want to short. It's a psychological issue I'm dealing with. So, I'm forcing myself to trade less and wait for the best setups in either direction and get rid of my bias to short. I trade just one market, NQ futures.
I’ve been focusing on losing less and my biggest loss has been 29% since, with my new level being around 21. Only one trade would have rallied and gotten me 100% PnL and the money saved from the other plays is nearly 3X that of the PnL from the one that would’ve turned around
Exactly trading less! Being inspired by matket wizards and high win rates I decided to trade a single stock that I followed and I traded the same setup only 13 times. I was going for the best probability setup on that issue. That was my playbook trade before the book was even written. I won 100% that year with 13 wins and a 60+% return. Not bad for very lazy swing trading! Most of my trades lasted 3-5 days. My typical monthly win rate would vary from 70-80% but all it takes is one loser and poor money management to erase all your hard earned success.
Could you share what are the frequent triggers that make them add shares to a loosing position? I think to be systematic or having a rule to get out of a trade and stick to it , in the long run, saves a lot of psychological capital. To be tranquil when trading is one of the most important things. At least for me . As for trading less , I only trade using times and sales ,scalping, so I’m in and out a lot. I have a hard time figuring out when is enough. Thanks for the videos they are really insightful.
I haven't looked into in great detail, but I like to get out when price crosses Donchian middle line. That is if I am in a trade for several days on 4H. If the uptrend keeps going price tends to bounce off middle line or always stay above it.
Sept Game Plan..Concentrating on trading less...reduce losses..let my winners run...let my losers go quicker...dont give back prior trade profits...dont add into loosing trade...add into winning trades...give myself reasons for entry/exit...get up earlier to prep for market/go to bed earlier ...start back meditation prior to market open...First trade green first day...2nd day dont give back profits...First day loss break even...
My first focus is to trade less. I’ve noticed from my statistics in trader vue when I trade more I tend to turn green trading days into red days like today. Second I’m going to learn to loose less and be ok with a loss. Far too many times if I have a loss I tend to start revenge trade out of frustration that I was wrong.
Love this channel, wishing you guys all the beat, you’re putting out great content that helps even experienced traders like me. The trading game is a business that you can never to get your fundamental rules, get lazy or complacent. Agree with everything in this video
trade the open and then its hands off for me. I am working on buying and holding better, I think a system for getting out is a great idea. I get shaken out too easily even if there is a good positive catalyst.
Hi thank you for the great trading content. I have a question regarding trading and the time of day. For the most part, i only trade within 1-2hours after open. If i do trade after this, im often chopped up and generally feel its really difficult to trade. Ive watched many of your videos and from my understanding a lot of you trade most of the day. If possible, could you make a video sharing any tips on how to successfully trade throughout the day? Thanks
I would love to know how people are using TradingView to use “tags” or how to use trading view to make notes of trades. Is it possible to add you buy and sell entry’s? Can anyone point me to how I can use trading view to help with my trading journal? I feel like I’m missing trading views “journaling features” and would love to see how people are making notes of their trades.
RHS you should see a lightbulb on the tool bar it's called "My ideas" click on it then a panel should slide out, at the top is a '+' symbol click that and it will take a screenshot at that moment of your set up and you can't annotate it, just hit save when done and it will be viewable whenever you need, when you return to it after the trade is over you can press play which will re-play the trade from the time of creating your idea to now so you can see how it went. N.B. I have the pro+ paid version of Trading View so not sure if it is available for the free version
Personally, I’m working on less drawdown on bad plays. It’s creates a psychological rut (like you mentioned in the video) that spirals out of control, especially if that poor trade is one of the first of the day.
Trade Less ... I have devised a rule named, "Casino Syndrome". While at casino, once you start loosing your arrogance would not let you quit. I have quantified on this psychology trait as its my biggest money loser. If I cross a particular threshold, I cut my fingers ( not practically ... ha ha ha) for not to trade more.
@@mbellafiore19 Hey ther thanks.I just want ask you one more question if i can do you make some video about how you money menagment in your company? Becose i watch a lot of your videos from SMB very informative :) Just simply yes or no will be great and i search for this video.If you don't make such a video please make one how to money menagment like a pro.
I doing middle size trade not less or more I did trade myself from 1996 but I didn’t have a money for day if I have more money I can make from 100k turn to be 500k couple month I know to know but no body believe me Bc I don’t have liscen for option and stock trade i was quite trade bc didn’t have time to trade for paper account my dream is stock and option trade I hope one day firm can give me a chance to work with option and stock market soon
Trade less only the best set ups along with really focusing on cutting losses when I'm wrong very quickly. Big losses and to many trades are the biggest way to kill account growth
@@smbcapital need a help just through trading I vanished 5000k in 6 months I have learnt to earn but when I did I end up day over trading and end with minus and jump quickly as the market starts still want to continue in market what should I make changes I will be glad if you answer it.. your videos are motivating and your channel too 🙌
