bakrob99

Page 2 (continued)

And you never ever know which trade will work out. Some will. Some won't. You need to have your losers MUCH smaller than your winners. And you need to have SMALL losers. The reason is that large losers will screw up your emotional makeup and keep you from either re-Entry or taking the next signal.

If your rules are too precise - they won't get you in the next move because the market is always slightly different. I can tell you that ghe price action of these moves today are quite a bit different than they were 2 years ago. Your entry rules have to evolve and keep changing to meet the market change,

It is your ability to develop your MENTAL EDGE that will make you money.

You could read the best book (out of about 100 that I wasted my money on) on trading written by Chris Shea called LICENSED TO PROFIT. It is all about how you need to think about trading as a business.

I noticed your post regarding New Traders being more interested in Entry Setups than other masrket considerations. I just wanted to tell you that I shared that belief when I first started. But my experience of the past 6 years of trading the ES and other futures markets shows that this is not where you should be spending most of your efforts.

The key for me has been to develop a flexible (repeat FLEXIBLE) not cast in stone criteria for buying or selling the market and then knowing when to take a small loss. And then being willing to hold on for as much as the market is willing to pay on the winners.

see next PM for the 2nd part of this message