Only a fool accepts widely held trading maxims

Trading maxims that are treated as gospel, but nobody actually investigates their accuracy.

Why do we implement them into our trading plans without investigating? 
It is because we are sheep, and it’s easier to be a follower.
Successful traders think like wolves and never follow the herd. In fact, they avoid the herd like it’s the plague.

Last summer I realized I had spent my entire trading career as a sheep in wolves clothing when it came to risk management.

For years I had steadfastly held on to the belief that you must get 2:1 on every single trade. After getting stopped out of a number of trades that initially went my way I decided to investigate the 2:1 mantra.

My research was enlightening and totally changed my attitude towards risk management and probability trading. It showed that had I taken on 1.3:1 risk instead of 2:1in rangebound markets, I would have increased my profits and win rate.

I am no longer mislead by this false risk management “truth”.

Let this be an important lesson. Never accept strategies that the herd adopts and investigate everything, no matter how nice it sounds.


If you would like to learn more about how I trade, receive my nightly focus list with market analysis, setups and trade alerts, sign up at BullsonWallStreet.com
//platform.twitter.com/widgets.js

3 thoughts on “Only a fool accepts widely held trading maxims

Add yours

  1. You have aligned all in binary options , binary options software and binary options charts in a very perplexing way. I think investing in Forex market requires more mental smartness rather than binary market because of high complexity level and quite new concepts. That's why I am not agreeing upon your assumptions for accessing high deposit through Binary.

    binary options brokers

    Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s

Blog at WordPress.com.

Up ↑

%d bloggers like this: