Trader Mindset How to stay objective and build consistency in your trading
Sep 10, 2024
Discover the critical role of consistent position sizing in trading. Learn how maintaining disciplined risk management can help reduce emotional biases. Understand the importance of determining risk as a percentage of capital for making objective decisions. This approach can significantly enhance your trading performance and foster consistency.
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Use Consistent Position Sizing
- Use consistent position sizing as a percentage of your capital to manage risk effectively.
- Avoid optimizing the number of shares; this helps remove bias and leads to consistent performance.
Manage Risk with Bet Size
- Manage risk by keeping losses small and avoid going overweight on trades.
- Use consistent bet sizes to prevent fear and greed from influencing your trades.
Indifference Through Bet Size
- You can't consistently handicap unique events without data and backtesting.
- Consistent bet sizing creates indifference and objectivity in trades, keeping emotions out.