Today, I want to share a crucial lesson from my daily trading recap: the art of managing risk. As a professional day trader, I've learned that risk is the only element we can truly control. This realization has shaped my trading strategy, especially in an irrational market like the one we're currently experiencing.
The market has been quite extended, and despite the appearance of strength, it's essential to approach trades with caution. Today, I focused on executing trades with small size, ensuring that even if the market didn't follow my expectations, I could minimize potential losses. This approach allowed me to lock in profits, even on trades with limited follow-through.
One of the key takeaways from today's session was the importance of having a contingency plan. By designing trade plans with built-in contingencies, I was able to manage positions effectively, either minimizing damage or turning them into winning trades. This strategy proved invaluable, especially when the market didn't behave as anticipated.
It's easy to get caught up in the excitement of potential profits, but I've found that maintaining a professional mindset and prioritizing risk management leads to more consistent results. By sizing down and not holding positions for too long, I was able to navigate the day's trades successfully, ultimately securing a profit that more than covered my daily expenses.
In conclusion, the lesson from today's trading session is clear: focus on managing risk, and the profits will follow. By eliminating greed and trading with discipline, you can achieve long-term success in the world of day trading.
Thanks coach