The Voodoo Trading Post - February 7, 2022
"Cut your losses. Cut your losses. Cut your losses. Then maybe you have a chance" - Ed Seykota
Trading Strategy Tips
- Simplicity works. Your rules should be clear and concise. You should be able to summarize them on the back of an envelope
- Remember that buy and hold S&P Investors occasionally have 50% drawdowns on 8% annualized returns.
Weekly Instagram Trading Poll
How much of your trading equity do you usually risk on a trade......
Less than 2% - 44%
More than 2%
Many studies have been undertaken that prove that you should not risk more than 2% of your portfolio on any one trade. Even 2% is probably much too high for the average trader. New traders should probably start at 0.5% risk per trade for at least their first 100 trades until they have proven that their trading strategy is profitable.
What's on your watchlist? These are the strongest trending markets over the past month........
Recommended Trading Books
This is the true story behind Wall Street legend Richard Dennis, his disciples, the Turtles, and the trading techniques that made them millionaires. Dennis took trading novices and taught them his simple investment rules and philosophy and set them loose to consistently execute the trading strategy. Learn More
Please let me know what you think. What did you find most useful? What would you want more or less of? If you find this information useful please share with fellow traders.
Trade smarter, trade better!
“Very well put together, Has everything that you need in it. Goals, Watch list, Trades you took. What you are thankful for. Even has a section where you can outline your strategy and trading rules! Keep up the great work Voodoo
” - Shawn L.