Village Trader Podcast - Episode 5

In this week’s episode I look back at the key lessons  and 5 components for traders 

Goals

Before

I had a giant goal, which was completely unreasonable

Outcomes based

No plan

Now

My goal is simple- A perfect trade

Keep and update my journal regularly

Read one trading book per month.

Focusing on the weakest link (Me)

Money management

Before

I simply didn’t have any money management or risk management what’s so
I was the typical losing trader, I let my losers run with hopes that they would turn back in my direction until usually

Sometimes I would literally take a trade and hope for the best

Now

Now I subscribe to the mantra of only risking 2% of capital per trade


I am rigid with my stop loss, and I have no opinions on where my stop loss should be. I just place it where my predetermined plan tells me to put


My position sizing also adheres to the 2% rule and I don’t compromise

Discipline

Before

• To be honest I had no process or plan to be discipline to.


• I have key fundamental goals and processes that bring me closer to my goals

Now

1. I read a book everyday
   
   


2. Exercise
   
   


3. I have 18H00 appointment with my domestic watchlist (Resi and Finings index)
   
   


4. I only take trades that the 7/21 System give on those two indecies.
   
   

Resources

• I was trading an account far too small and I had unrealistic expectations.


• Still don’t have enough capital to trade with discipline and proper risk management.


• That’s why I am trading a demo, to work on myself while I keep slowly building up the required capital to trade with discipline.

System

Before

• In all honestly I didn’t have a system. I was jumping from system to system.
  
  


• Essentially I was caught in that vicious cycle of looking for a holy grail system that has 100% win rate. Which none exist.
  
  


• And jumping from timeframe to timeframe.

Now

• I only trade the one system, the 7/21 system


• Only on a daily chart


• Only on the Fini and the Resi index


• Only the mini contract.


• I now keep it simple

My book recommendation

• Trading in the zone -Mark Douglas


• Trading for a living - Dr Alexander Elder.

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