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4 Ways to Overcome Impulsive Trading 🚀
Impulsive trading is one of the most common challenges traders face, regardless of experience level. It often leads to emotional decision-making, unplanned trades, and unnecessary losses. Learning how to manage this impulsivity is key to becoming a disciplined and successful trader. Here are 4 tips to help you overcome impulsive trading 👇:
Trade Tiny To Win BIG
Looking at old ideas with fresh eyes can be incredibly valuable. One old idea is to Trade Tiny. The idea was to trade the smallest possible size of 0.01 units on all your trades even if you had a five or six-figure account and could afford much larger positions. My argument for this approach is that Trading Tiny eliminates almost all bad trading behavior. It allows you to trade much larger time frames with massive 200-300 pip stops because a loss on any given trade is only $20-$30. 💡📉💵
Never Confuse Brains with a Bull Market
Ray Dalio, the multi-billion dollar hedge fund manager, has always claimed his risk parity portfolio was 🌩️ “weatherproof”. But the truth appears to be that he simply rode the 30-year bull market in bonds for all that it was worth. Now that bonds are essentially a state-run enterprise of the Federal Reserve 🏛and bond/stock correlation no longer exists 📉 neither does the “brilliance” of Dalio’s strategy.
4 WAYS TO TRADE PRICE ACTION
Price action is one of the most straightforward and effective ways to trade the markets. Think of it as a way to cut through all the noise and focus on what really matters—the movement of price itself 📉. No need to clutter your charts with tons of indicators; instead, you’re learning to read the market’s story as it unfolds 📖. Ready to dive in? Let’s explore four fun strategies that will get you started: trading the range, trading breakouts after a retrace, trading resistance at swing highs and lows, and running and testing significant levels.
Avoid Breaches by Uses Average True Range (ATR) to Determine Proper Sizing
In prop trading, managing risk is crucial to avoid hitting loss breaches and maintaining consistent performance. One effective way to do this is by being aware of the Average True Range (ATR) and adjusting your position sizes accordingly. Here's how to incorporate ATR into your trading strategy:
