Another key principle I strongly apply is limiting the execution of successive new risks within a single session. Overly concentrated risk exposure based on one day’s market move might work at times, but more often, it can be harmful to your equity, potentially wiping out profits accumulated over weeks in just a few sessions of pullback. The key for executing swing and positional style trade is to gradually increase exposure a few sequential period when the market continue to prove you right. -Losing Months (2024): Max Month: 8 including re-attempts, -Winning Months (2024): Max Month: 6 including re-attempts (Avg Month: 5.4) This is where you need to exercise restraint after a euphoric day like yesterday, when everything seems to be 'skyrocketing' without any intraday pullbacks in that initial hour. 'FOMO' has to be eradicated from your trading dictionary.
Another key principle I strongly apply is limiting the execution of successive new risks within a single session. Overly concentrated risk exposure based on one day’s market move might work at times, but more often, it can be harmful to your equity, potentially wiping out profits accumulated over weeks in just a few sessions of pullback. The key for executing swing and positional style trade is to gradually increase exposure a few sequential period when the market continue to prove you right. -Losing Months (2024): Max Month: 8 including re-attempts, -Winning Months (2024): Max Month: 6 including re-attempts (Avg Month: 5.4) This is where you need to exercise restraint after a euphoric day like yesterday, when everything seems to be 'skyrocketing' without any intraday pullbacks in that initial hour. 'FOMO' has to be eradicated from your trading dictionary.
Jeff can u go into more detail around how u approach progressive exposure? In a lot of cases, when the mkt is moving correlation picks up and the moment with the highest EV entry occurs across multiple tickers in the same day. On a big market trend day it is not uncommon for 5-10 tickers to all break out. How are you approaching that? Are you just taking ur top names on the initial break, passing on the remainder, and then adding a new batch of risk in whatever your top names on the next wave of setups? Would be interested in understanding how you approach this situation if you would be open to sharing…
@jfsrevg My win rate is ~15% but I barely care because my median risk/reward is way above 10:1. I just follow the priciple of keeping the losses small and let the profits run.
