Trader Mindset MMS #27 - When To Stop
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Sep 6, 2023 Listeners delve into the intricacies of system trading versus ad-hoc methods. Strategies are highlighted, showcasing the importance of data tools, performance metrics, and adaptability. Emotional management and resilience are emphasized as key elements for overcoming trading drawdowns. The discussion connects personal motivations to trading success, urging traders to align strategies with individual goals. Unique comparisons to competitive gaming reveal how mindset impacts strategy, inspiring growth through experience and reflection.
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System Trading Explained
- System trading and back-testing use historical data to produce outcome statistics for defined rules.
- This provides objective measures like expected value, drawdowns, and equity curves to judge rule robustness.
Trade Higher Time Frames
- Focus on trading setups visible on daily or weekly charts rather than intraday data.
- Avoid pushing or chasing trades; wait for statistically significant edges to maintain discipline.
Practice Trading Like Esports
- Use back-testing for practice and experimentation to find trading rules compatible with you.
- Treat nightly chart reviews like video review sessions to analyze trades and improve decision-making.