So a personal friend of mine who has dabbled in trading over the years just asked me “how I traded”? And I told him that the details of what I do take a long time to be able to “see”. He then asked if I could simplify it down to one thing, concept, idea, setup… what would it be? It really made me think, I told him there were about a handful of concepts that I thought were important. I ended up telling him if I had to pick only one thing it would be balance. I feel balance is not only involved in almost all aspects of trading but in just about all aspects of life. Anyway if I started talking about other concepts he wouldn’t of been able to grasp them being at the point where he is in his trading career.

I was curious what you guys thought of being “key concepts”



Here are the concepts that are important to me at this point:


Balance (in all aspects) *Psychology: (asking quality questions) (trading is only as difficult as I make it)

Simplicity

Constant Risk (percent risk model, risking the same amount on every trade)

Synergy Synergy Synergy of Key Events (Setups) / The accumulation of edges

Role Reversal

Quality Hidden Stops

Consistency (use of automation for sizing, execution and management)

Integration of all of the above, Planning & Preparation, into a plan

Trading in the direction of the Flow / Impulse

Low risk entries, the price where I can size the greatest amount of shares with a quality stop while keeping my R constant

Playing the numbers like a casino, keeping my R small and trading multiple positions at once


- Tommy