The podcast is back after a long break! Today, we dig into some of the conventional wisdom and common “soundbites” that are used. You’ve heard these, probably over and over:
Only price pays.
The trend is your friend. Ride your winners
Never add to a losing trade
Never let a winning trade turn into a loser
No one ever went broke taking a profit
You’re only as good as your last trade
Each of these sayings (well, most of them) have a place and are exactly right for certain kinds of trading, but they are also wrong and maybe even dangerous. In this episode, I use these sayings and encourage us to think deeper about trading styles, markets, and what actually matters.
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Enjoy the show:
The other problem with “price only pays” – I still have to pull the trigger, I still have to size it right, I still have to have to conviction to ride it till the trend “bends”. I still have to decide (and follow-through) when to scale out or add back in. I still have to deal with multiple losers in a row. So really, how I execute is the only thing that pays.
Yeah any soundbite leaves a lot of things unsaid and sweeps a lot of details under the rug. Very true.
Nice to hear You again ! Thank You 🙂
🙂 Thank you!
so true, I often tell myself “you’re only as good as your last trade”, I suppose I never really thought about what that means. Especially as my trading relies on probabilities, of course I have losers but it’s the accumulation over time that’s important. I knew that and I still hung on to this contradictory saying. Thanks 🙂