Here are iii mutual problems that I've observed alongside experienced, talented traders who are struggling to teach to that ever-beckoning adjacent rank of performance:
1) Position Sizing - They don't lead maintain their largest endangerment when they lead maintain their greatest experience for the marketplace too conviction nearly direction. Very high confidence trades may endure sized relatively small; lower confidence trades are sized also large (often to brand coin dorsum from before losses). They are taking their biggest cuts at the plate when the ball is out of their smasher zones;
2) Execution - They hold back for markets to teach upward before they purchase too to teach downward before they sell. As a result, they teach far at prices that run out them unusually champaign of report to pullbacks. Many times, peculiarly if the trades are sized large (see above), the estrus volition lead maintain them out of proficient trades. In short, they're non patient nearly getting into positions; they chase moves, fearful that they'll immature adult woman a lucre opportunity;
3) Rigidity - They don't adjust to changing markets. They aspect for large moves inward markets with declining volatility; they merchandise breakouts when signs betoken to make conditions. They educate stops too lucre targets inward ways that don't adjust to shifting volatility. They await the marketplace to accommodate what they're doing rather than vice versa.
How much coin you lot brand is a percentage of what you lot merchandise too how you lot merchandise it. Many traders volition switch what they merchandise (markets, stocks, fourth dimension frames), alone to proceed making the same mistakes outlined above. Getting into proficient risk/reward trades too and hence maximizing the risk/reward spell the positions are on is a major driver of long-term trading success.
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