New Traders Need Rules, Not Intuition
For newer traders.(everyone else can skip)
ps - read to the end for my bowling analogy…pretty proud of it.
One thing that helped me a ton early on was standardizing everything…way more than the typical “rules” that you hear online.
The goal (as a newer trader) is to make the smallest amount of “gut feeling” decisions as possible because you haven’t built up the intuition muscle. You have no reliable gut feelings…gotta earn those.
Your trading should have ZERO ifs, ands, or buts.
I’ll give you some *very broad examples* but make it up for yourself and your style/personality. Example standards:
> position size: 10% of port (no exceptions)
> stoploss: 5% below entry
> profit target: place a 10% trailing stop after stock passes your breakeven level and just let runners run
> vehicle: common stock only
…every single trade, like clockwork.
You have to earn trust with YOURSELF. Earn the flexibility to make decision on the fly. Or based on intuition.
Key takeaway here is:
1) if you’re unprofitable…swallow your pride, and simplify/standardize everything. Have structure.
2) Build the intuition muscle, with real money, but with real guardrails.
It’s like going bowling and you have those bumper things on the side. They guide the bowling ball in the right direction. Start there.
Hope this helps some of u guys
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