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    16 - 7-PDF - Wiley CandleStick and Pivot Point Trading Triggers

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    Pranay
    This document discusses the importance of asking questions before trading to avoid making emotional decisions and to determine the appropriate trading strategy. Some key questions to ask include what time commitments are required, what risks you are willing to tolerate, and what returns are needed given your account size and living expenses. Asking the right questions helps ensure you have a well-thought out trading plan and realistic expectations.

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    16 - 7-PDF - Wiley CandleStick and Pivot Point Trading Triggers

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    Pranay
    46 views1 page
    This document discusses the importance of asking questions before trading to avoid making emotional decisions and to determine the appropriate trading strategy. Some key questions to ask include what time commitments are required, what risks you are willing to tolerate, and what returns are needed given your account size and living expenses. Asking the right questions helps ensure you have a well-thought out trading plan and realistic expectations.

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    16_7-PDF_Wiley CandleStick and Pivot Point Trading Triggers

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    This document discusses the importance of asking questions before trading to avoid making emotional decisions and to determine the appropriate trading strategy. Some key questions to ask include what time commitments are required, what risks you are willing to tolerate, and what returns are needed given your account size and living expenses. Asking the right questions helps ensure you have a well-thought out trading plan and realistic expectations.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    46 views1 page

    16 - 7-PDF - Wiley CandleStick and Pivot Point Trading Triggers

    Uploaded by

    Pranay
    This document discusses the importance of asking questions before trading to avoid making emotional decisions and to determine the appropriate trading strategy. Some key questions to ask include what time commitments are required, what risks you are willing to tolerate, and what returns are needed given your account size and living expenses. Asking the right questions helps ensure you have a well-thought out trading plan and realistic expectations.

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    10 CANDLESTICK AND PIVOT POINT TRADING TRIGGERS

    Trading without asking questions or without probing leads to trading


    blindly or without a plan. It opens the door for destructive emotional inter-
    ference. Another quote from Jesse Livermore helps confirm this: “There is
    nothing new on Wall Street or in stock speculation. What has happened in
    the past will happen again and again and again. This is because human na-
    ture does not change, and it is human emotion that always gets in the way
    of human intelligence. Of this I am sure.” (Smitten, Trade Like Jesse Liver-
    more, p. 167)
    That statement was made over 65 years ago and is without a doubt still
    applicable to this day. Do not let your emotions get in the way of your trad-
    ing decisions. If you ask the right question before placing a trade, you stand
    to gain an edge on winning the emotional battle of trading. It is generally
    those who are afraid of losing through fear itself who stand to lose because
    that emotion will interfere with rational, well-thought-out trading plans.
    Asking yourself the right questions will help you to choose a more apro-
    priate investment vehicle or trading strategy. For example, ask yourself be-
    fore entering a trade: What are the time expectations for a result to occur?
    Do I have availability of time to see the trade through? Would short-term
    day trading or swing trading be possible if I have a regular day time job? In
    what time zone do I start work? This is relevant because a person living on
    the West Coast could trade an early morning market such as the Chicago
    Board of Trade (CBOT) bond contract opening session; however, a person
    with an early morning job may want to consider foreign currency or forex
    (Foreign Exchange) trading on the European session starting at night.
    In order to know what time demands you need, you should also ask
    yourself if you have the tolerance for trading a leveraged product and if
    you have the tolerance for the risks: Should I use a time period stop—if the
    market does not move or react within a specified time period, should I exit
    the position? Should I use a conditional stop, such as a “stop-close only”
    order? Does my order platform take such orders, or do I need to manually
    watch and then implement such an order? (In intraday trading, the answer
    is yes, you need to manually watch the close of the time period you are trad-
    ing in.) Can I afford to place a stop, say, 10 or 20 percent of my overall ac-
    count value?
    You need to be clear and honest with yourself when answering these
    evaluation questions. Remind yourself by asking: Why am I trading? What
    are my expectations? (I have met too many people that look at trading as an
    easy and quick way to make money or to replace their current career.)
    Based on your trading account size or your risk capital, ask: What returns
    will I need in order to generate sufficient income? Is my starting equity size
    or bank roll inclusive of my living expenses? Are my expectations on that
    return realistic on a constant basis?
    These questions are important because they will help you to determine

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