| | From The Desk of The Trader |
| “Guerilla style trading is the best, purest trading”
-- The Trader
|
| | FAF19 Day 12 Lesson 11 19 February 2019 |
| | Daily Goal: 100 Ticks
Max Contract Size (Per Trade): 5 (Margins $700; acct balance over $3500)
Performance: 0 Ticks on 0 Contracts
Summary: I had another "not feelin' it morning, so no trades today. And it's a good thing in light of how the market traded today (see video).
Recap Video: Click here.
|
| Today’s Trading Lesson: The 3 Things You Need To Get Started
|
| This lesson is simple.
There are 3 and only 3 things you need to trade successfully (profitably).
Those 3 things are Financial, Strategic and Emotional Capital.
A bit more about each...
- Financial Capital -- This is the simplest and most straightforward form of capital. You either have or you've enough money to begin trading or you don't/haven't. It's literally that simple. However... there's something worth noting. 1 way to "find" the capital you need to open a trading account is this. Take the total risk tolerance you have for your retirement savings for the coming year. Then spend the year accumulating that amount in a separate account. If your risk tolerance is high enough and your savings high enough, you should have more than enough to fund a futures day trading account. For example... Let's say you have a combined $50,000 total saved in your various retirement accounts. Let's also assume that you have risk tolerance of 10% meaning you're willing to accept $5,000 of risk to your $50,000 stash. My suggestion is you put your retirement money in essentially riskless alternatives like money markets and certificates of deposit. Then you set about saving $417/month. At the end of 12 months you'll have $5,004. If you've been preparing yourself, you'll be ready to open your trading account.
- Strategic Capital -- This is where most people try to start... Looking for their own Holy Grail aka a strategy with a high win percentage (and big wins to boot). The best solution here is to find a simple, price-action based trading approach that feels comfortable and right to you. It really doesn't matter what time frame its on, because of the what you learned recently about the concept of fractals. Once you find and validate the right strategy, then its a matter of practicing that strategy until it becomes a part of you
- Emotional Capital -- The final piece of your trading armada is your psychology. I call this emotional capital. This is where your discipline, patience, lack of greed, etc. come in. The bad news is I can't imbue you with positive Emotional Capital characteristics... but I can give you the tools that I use/used to turn the corner to profitable trading.
If you have or develop each of these forms of capital, you can day trade profitably.
And don't let anyone tell you different. |
| | |
