Here is the link.
so in trade management that's the part
00:11
that you do once you've already entered
00:12
to me that's the part when you least
00:15
mentally stable because you've expressed
00:18
a view and you will only tend to see
00:20
psychologists have shown we tend to see
00:22
the view when if I give you two pieces
00:24
of fundamental information one that's
00:26
bearish for your case and one that's
00:28
bullish and you've bought the share you
00:30
superimpose the significance of the
00:32
bullish one at the expense of the
00:33
bearish one and that is psychology
00:36
because you're trying to combat a
00:38
cognitive dissonance in your own mind so
00:41
there was something that's upsetting you
00:43
there and there's something that's
00:44
pleasing you and you'll say the one's
00:45
more important and overalls the other so
00:49
you need to have specified in yours
00:53
stop your entry and your take profit at
00:56
the point of placing the order and
00:59
that's usually a pending order in other
01:00
words the market comes and gets me and
01:02
this trade only becomes live if it does
01:04
what I expect it to do and it runs a key
01:06
level if it doesn't I am totally happy
01:09
and I will take the order away and it
01:11
can fall do whatever else it was going
01:13
to do and I just say my view and all the
01:15
research I did was incorrect and when
01:17
let's find another place where we can
01:19
try again so the in trade management the
01:22
hunt volatility funnel trading strategy
01:25
reduces the pressure on in trade
01:27
management most people have pressure on
01:29
in trade management because they've
01:30
never thought about this stop until
01:32
they've already expressed the fact that
01:33
they want to buy a market that they
01:35
think is going up and that's why they
01:38
now have a stressful in trade management
01:39
they've never thought when it's in money
01:41
at what level they'd be happy to get out
01:42
and so the lowest common denominator is
01:44
your emotions so greed keeps you in pain
01:47
gets you out simple the stability in
01:52
trading stability and outcome in trading
01:59
would be consistently doing a very
02:03
specific set of systemic rules at that
02:06
have good elements of money management
02:09
incorporated in them and that will still
02:11
mean taking losses but it will mean take
02:13
sized acceptable losses and a gathering
02:16
and accumulating your wins and that is
02:19
the hunt for stability in trading
02:22
certainly in terms of outcome how can
02:26
one plan trade entries and exits you
02:33
should plan always and how do you do
02:36
that decide what you're looking for
02:39
specify it write it down in algo format
02:44
so it's actually mathematical logic so
02:47
you need to almost write program code
02:50
English and preferably get someone who
02:52
can then code it for you and be specific
02:56
of those criteria don't have too much
02:58
but know which ones add value don't have
03:00
conflicting criteria because you'll
03:01
never get any hits and then you will
03:05
have begun the process of establishing a
03:09
personal strategy and what about city
03:12
start losses in service how do you do
03:14
that so for me stop losses always have
03:17
to be technical they have to be based on
03:19
what the market price behavior has
03:20
already shown you so look for where the
03:22
market is respecting a level for which a
03:26
breakthrough that level would then
03:28
represent a change in direction so if
03:32
you're trading with the trend at the
03:34
same time always try to get that as
03:36
tight as is allowable for the market
03:39
conditions which is why I favor low
03:41
volatility periods which allows the
03:45
title to stop what many people don't
03:46
realize is if I ever one is to two point
03:50
five trades but I get a lower volatility
03:52
later period where I can actually have
03:55
the one I actually have a one is to five
03:58
trade because I can then reduce that
04:03
unit I can trade twice the size for that
04:05
half distance and therefore that size
04:09
relative to the original reward is now
04:12
five times instead of two point five
04:14
times people don't focus enough on how
04:17
much can I take for how much I can risk
04:19
and which market conditions give you
04:21
those rare opportunities and what about
04:24
training stops
04:26
why are they not trading strategy Kaling
04:29
stop skilled trades so I'm pretty sure
04:32
the brokers love stop losses because
04:34
usually a they said too tight in other
04:36
words people don't identify the rare
04:38
occasions when you can set them pretty
04:40
tight they said to tie generally and
04:43
therefore they take people out with
04:45
guaranteed losses and also trailing
04:48
stops mean that any progress that is
04:50
made people hustle to it's almost like
04:52
an accounting thought well trailing
04:56
stopped to entry for break-even trades
04:58
no one ever got you know shot for doing
05:01
that and no one ever got lost money
05:03
doing that well actually if you do do it
05:05
too soon you keep killing good trades
05:07
and unless you're trading incredibly
05:09
fast moving breakouts which I aim to do
05:12
and even still doing that you still can
05:14
have a slow start and then it
05:16
accelerates stops kill the trades so you
05:19
have to have a really strong stop level
05:21
that you agree initially and you need to
05:22
stand by it and not trail in my opinion
05:29
that's what works for me and how
05:32
important is it to look to risk to
05:34
reward calculations imperative central
05:38
part of money management as to whether
05:40
the trade should be taken and something
05:43
I've already said before so risk reward
05:45
is the cornerstone for me because the
05:48
truth of the matter is people will say
05:50
our risk reward okay I'm only gonna risk
05:52
1% 2% 3% or 4% of their accounts that's
05:55
slightly almost less important than what
05:58
you're getting out of the trade if you
06:01
have a reasonable probability that's 50%
06:03
and you're getting risk rewards on
06:05
averaging 5 to 1 in the long run you're
06:08
going to make money that risk reward is
06:11
is the key part of why you will make
06:13
money even if you lose 50% and
06:15
occasionally 45% only winners of your
06:18
trade the net you'll net me up and I
06:22
don't know why risk reward isn't more
06:24
emphasized and the only way the other
06:26
key element is the minute you have a
06:28
risk reward criteria it enforces on you
06:32
to have a target because what often
06:34
happens is people have the target they
06:36
have the qualification for the trade it
06:38
starts moving then it goes down and
06:40
little bit as even a best breakout to do
06:42
and this is what happens on hun
06:44
volatility theory we actually show you
06:46
have interim levels to your target and
06:48
you can expect to pull back so that when
06:50
it's happening and you're feeling
06:51
emotionally uncomfortable you realize
06:52
though it is in fact complying with what
06:55
we expect even though it's not pleasant
06:57
and you stay in the trade and you
06:59
actually get your 1 is to 5 many say
07:02
whoops I had one is 21.5 it's now coming
07:05
back I don't want to lose that I'll
07:06
snatch it and they end up getting a one
07:09
is to one trade when a one is to five
07:12
was for grabbing and only getting them
07:14
forty percent of the time so by
07:16
destroying the risk rewards you actually
07:18
put yourself on the course for losing
07:20
the game
07:28
you
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