Trader Mindset MMS EP #26 - Changing Trading Styles
Aug 30, 2023
The hosts discuss a tragic loss in their community and its impact on market emotions. They explore the mindset shifts needed for transitioning from intraday to swing trading, and emphasize starting small to manage change effectively. Key strategies like position sizing and effective order management for overnight holds are highlighted. The importance of patience and resisting reactivity in trading is discussed, along with the value of cross-training in multiple trading disciplines. Personal evolution and data-driven decisions are encouraged as traders adapt their strategies.
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Trading Style Evolves With Your Life
- Human needs and tolerance change over time, so trading style often evolves with life stages.
- Longer holding periods frequently appeal as traders age or seek less screen time.
Transition Slowly By Position Sizing For Risk
- Start small and experiment with longer-term trades using tiny position sizes to learn without emotional pain.
- Position size based on worst historical overnight moves and plan stop adjustments before entering trades.
Define Acceptable Losses And Work Backwards
- Always play superior defense by knowing your average and max loss and sizing positions to those limits.
- Work backwards from an acceptable dollar or emotional loss when designing new swing positions.
