— “The max loss in this position is $500. A hundred dollars more won’t make any difference.” (detail: the max loss rule is $400)
— “I found this opportunity of placing one more trade. Eleven positions won’t hurt because the probability of profit is very high.” (detail: the max number of simultaneous trades is 10)
— “This contract is not very liquid but has excellent ROI. I believe volume will kick in during the next couple of days.” (detail: the rule says to stick with highly liquid assets)
The devil is the devil because he is old in this business. And also because he pays attention to the details. One more position, a couple of days more or even a couple of dollars more can ruin your entire trading business.
The good news is it doesn’t take too much of an effort to beat the devil in the details. Every time you think you’re about to take a step towards the dark side of a position, ask this simple question:
– “Is it in accordance with the rules?”
If the answer is NO, then, NO. Either you dump the candidate or the trade. Beat the devil with one single word: check.
Chart of the Day
Follow the rules!
The scene above depicts Batman mentoring Robin.
(Image credit: Tackle Trading team member Daniel Williams in the Clubhouse)
Video of the day
Promote Maximum Efficiency and Creativity
Coach T reminds you to design your office to promote maximum efficiency and creativity.
Today’s Lineup
Coaches Lounge 11am EST
Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.
Halftime Report 12:30pm EST
The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day and fun in a way that only Matt and Tim can deliver.
Coaches Show 8:30pm EST
Join your coaches every Tuesday at 8:30 PM EST for the Coaches Show, where Coaches Matt, Gino, Noah, and Tim cover the latest market movements, forex news and trades, options positions, spread trades, and specific stocks and indices as requested by Pro members like you.
Market Recap – 4:30pm EST
The Market Recap is designed to give you a quick overview of the day that was. While brief, this report is designed to cover all of the major events that drove the markets that day and help you plan for the trading day ahead.
