TRADING TIPS

Ego Will Kill You in This Business

Hubert Senters here. Let’s talk a little bit about ego and trading. Heads up, if you’re trading you probably got a little bit of ego just like a burial in the world. It’s very important to try to keep it at check if you can. Couple of really good books on this right on holiday. Ego is the enemy. Really good book. You can look it up on Amazon or you know on. And then also he’s got a book called The obstacle is the way. All of Ryan Holiday books are really good but those are two of my favorites of his. But anyway, let’s walk through an example of why ego can cost you and why I like using Ichimoku to keep my ego in check. So what I’d like to do with Ichimoku if whatever I’m trading in this example it’s crude oil. If crude oil is above the cloud I want to focus on the long side even if it’s the wrong side. Okay. In other words, I could be long crude oil like here, here and here. Heads up, I would lose money on all three of those trades. But if I keep my risk reward ratio set up to take care of me and not the market I can afford to take those three losses so that when it goes below the cloud now I got target one, target two, target three in place. Does that make sense? So if I have a string of 10 trades and if I’m on the right side of the cloud and I’m checking my ego. No. The technical is telling me I should be long. I’ve got to stay committed until that changes so I don’t have to be worrying about if I am right or wrong because I don’t care if I’m right or wrong. I’m in the business of making money. I’m in the business of making correct decisions every single time. It’s impossible to do even the best in the world of it are usually marginally halfway decent and there are like 40-50 percent right. And usually how you make most of your money is having a risk reward ratio that is way in your favor and not in the market’s favor so hopefully you pick up the book. Ego is the enemy either on Amazon or Audible. Read it. Digest it. Consume it. And make some improvements in your trading. Good luck. Hope it helps. And I’ll see you on the next video. Hubert.

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