The definition of man-age:
- To
direct or control the use of; handle.
- To
exert control over.
- To
make submissive to one’s authority, discipline, or persuasion.
- To
direct the affairs or interests of.
- To succeed in accomplishing or achieving,
especially with difficulty; contrive or arrange.
1. Traders must be great risk managers.
“At the end of the day, the most important thing is
how good are you at risk control.” -Paul Tudor Jones
2. Traders must manage their own stress.
Trade position sizes that keep your stress
level manageable, if you can’t talk calmly to someone while trading you are
trading too big.
3. Traders have to be able to manger their emotions,
we have to trade our plan not our greed or fear
“There is nothing more important than your emotional
balance.” – Jesse Livermore
4. Traders must manage their ego and need to be
right.
“As a trader, you have to decide what is more
important—being right or making money—because the two are not always compatible
or consistent with one another.” -Mark Douglas
5. Traders must manage entries. When the time is
right take the entry. Don’t wait until it is too late and chase, and don’t get
in prematurely before the actual signal, also don’t get carried away and be too
aggressive trade the right size.
6. Traders must manage the exit. Whatever our exit
strategy is we have to take it. Sell at your target, exit into an exhaustion
gap, or take;
the trailing
stop, whatever the plan is follow it.
7. We have to manage our thoughts. We have to focus
on what is happening right now. Mentally time traveling back into the past and
reliving our losses has no value, we have to learn from our lessons and
move forward. Mentally time traveling into the future and believing that big
profits await if we take a huge position size and go for it, may be the most
dangerous mind set of all. We must manage our mind and focus it on following a
tested trading plan.
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