Thread by @IMRiskManager

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#WeekendReading The Universal Principles of Successful Trading by Brent Penfold
read good reviews of it many times in past

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1 If u function only in an environment of certainty & security, like being in a secure relationship or secure job, then trading is not for u

2If u r n intellectual who rarely admits 2 being wrong, then trading is not 4 u,as markets have regular tendency 2 belittle u & make u wrong

3 There r no limits 2 foolishness wen instt. traders can be just as ignorant & clueless about what works in the market as the private trader

4 Nothing magical in 200 DMA, I(Brent Penfold) just use it 2 determine d dominant trend because I prefer not 2 place trend trades against it

5 if u aren’t already, plz becom a skeptic wen u read trading buks. Just cz I or ny author writes somethin, doesn't necessarily make it true

6 Trading’s only real secret is . . .

The best loser is the long-term winner.
—Phantom of the Pits

7 Most traders are bad losers. They hate taking losses, moving stops and looking for any excuse to keep a losing trade alive.

8 Psychology is often provided as an excuse 4 traders’ failure. However, while it can be a contributing factor, psych. isn't the sole reason

9 To succeed in trading, you need to cover three important areas:
- methodology
- money management
- psychology

10 methodology-analysis & trading plan behind why u buy/sell
money management-amount of money u commit to trades
......

......Psychology-having discipline 2 follow ur trading plan

11 Common mistakes traders make in their beginning years--
From The Universal Principles of Successful Trading

12 1st stage of "curve fitting,” in which novice traders'll attempt to mould their collection of indicators to fit past data
#SharedReading

13 Being slow to takes losses and quick to take profits is a recipe for disaster.
- Brent Penfold
#LearningTogether
#SharedReading

14 Most winning traders have learnt---
From The Universal Principles of Successful Trading by Brent Penfold

15 If you can keep your losses small and manageable, and your wins larger than your losses, you’ll stay ahead of the losers’ game
#trading

16 To survive as traders, you will need to look at your business of trading as a business of risk management.
Justifies my Twitter handle😉

17 The larger the % of ur trading capital u risk on any 1 trade, the higher ur probability of being wiped out, or ur risk of ruin, will be.

18 from The Universal Principles of Successful Trading by Brent Penfold--
Formula to calculate the Risk of Ruin in Trading---

19 Reduce risk of ruin by
Reduce amount of money risked/trade
Increase accuracy or win rate
Increase average win 2 average loss payoff ratio

20 Expectancy refers to what u can expect to earn, on average, for every dollar u risk in a trade
Expectancy formula from Brent Penfold book