It appears if I "limit my risk" success is guaranteed.
"And a reminder:
I care about you. I care about how you are doing with your trading. I always like to hear from you. You can text me anytime at 304-281-8332.
And now, a little bit of a rant:
I have been seeing the words "should I" in a lot of questions lately.
Should I buy IBM?
Should I take profit on USD/CAD?
How many shares should I trade?
Is this trade ok? Should I get out?
The answer is: No one knows what you should do.
Except, of course, for you.
Too many traders feel there is some "right answer," or magical "risk management formula," or "special strategy".
But, in fact ...
... There are just are two types of traders:
Traders who let losses get out of control. They fail.
Traders who do not let losses get out of control. They win.
You might say, "Well, what strategy should I use?"
No one cares.
It doesn't matter.
Use a different strategy every day until you find one that is so awesome you don't want to use anything else.
Stop asking for permission to do your trading in a way that you like.
Stop wondering what a guru thinks of your trade.
Stop looking for validation outside of yourself.
Stop looking for a mentor. And instead ...
... Protect your account from big losses.
After that, do anything you like.
The big not-so-secret-secret is this:
If you protect your account from large losses, and do what is easy for you to do, you're going to be ok.
On the other hand, if you ever allow yourself to take a big loss, you are breaking the only trading rule that matters, and it doesn't matter if you have the "best mentor," the "best strategy," or you're using Van Tharp's sexy "optimal breadsticks method of risk management" or whatever.
Let me be very clear:
Backtesting doesn't matter.
Journaling your trades doesn't matter.
Your mentor doesn't matter.
Your strategy is irrelevant.
The size of your account is unimportant.
What market you trade doesn't matter.
Your past trading success/failure doesn't matter.
All that matters is that you make ONE decision every day:
I am not going to allow a large loss in my account.
Then, you just do what is easy for you to do, and you do it over and over again, and you compound your gains.
Have the best weekend ever.
The 5 things email will return on Monday."