Tom Dante

Tom Dante

23-10-2022

16:27

22 years trading. Here are some of the most important things I've learnt (Part 2/2):

19. Work on finding the base level of risk that is right for you. To do this, you should know your metrics (win/loss percentage etc) You can’t afford to bet the farm on a trade. But if you trade like a pussy, you will never have a farm to be in the first place.

20. Risk can and should be varied from the base level. There are benefits to risking a fixed percentage per trade but there are times (and trades) when you should push the envelope. If you do not understand when these times are, you do not have enough experience.

21. Many traders make a mistake and then compound it in frustration by jumping into an ill-considered position or betting too big etc. This is illogical: If you have a flat tyre, you don't get out of the car and slash the other three. Don't be a cunt.

22. It is a bad habit to make the same mistake twice. It is unforgivable to make the same mistake a third time.

23. Emotions should be dealt with like with calories. Absorb them and then burn them off before you enter the next trade.

24. If you have a problem, the process to solve it is by asking yourself: - What is the problem? - Why do I have it? - How will I solve it? Many make the mistake of leaving out the second part. Without considering why you have a problem you cannot effectively solve it.

25. Journal everything you do. Question everything you read. Test every idea you have. Compare multiple outcomes on trades. (Start with whether it's a good idea to move to breakeven. Go onto whether it's beneficial to take partials)

26. Take time off to recharge when you feel you need it. Time is a great healer.

27. Money comes and money goes as you win and lose. The only number that matters is the amount you leave the casino with when you retire.

28. The true cost of trading isn't always limited to the money you think you're risking, the education you pay for or the time you spend learning. The true cost isn't known at the start. But one day, someone will bring you the bill and you'll remember these words.


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