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LESSON: Recap

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[op_liveeditor_element data-style=””][text_block style=”style_1.png” align=”left” font_size=”16″ font_font=”Montserrat” font_color=”%237e7e7e”]The main concern for traders should be protecting their capital. Without capital we don’t have anything to trade with or make any more money with.

So often the new trader falls into the trap of looking at what they can make rather than looking and protecting the downside.They also fall MAJOR PREY to the universal fear of missing out. Missing out on what they perceive could be a big winner, a big profit without them on it, a big running trade if they don’t let the trade run a bit longer whilst they continue to lose and lose, etc,.

The professional trader does not make these mistakes as they realise to make a profits their wins must cover their losses, and making their losses as small as possible will go a very long way to becoming profitable.

This section is all about helping you with managing your risk. Yes, big running trades are lovely, but what’s more important is locking in profit as the market makes it available often and noticing that the market may be turning against you and cutting a losing trade before it costs you too much could be key!

One of the most important things is not how you decide to use this trade management knowledge but that you add it to your plan and understand exactly when you will use it.

It is no good just saying “I will use price action to manage my trades”.

Your plan needs to cover exactly what situations you use price action and EXACTLY what rules you will follow to do so!

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