The Dynamics of Precept-ion

Extract from   ” Trading in the Zone “

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6 responses to “The Dynamics of Precept-ion

  1. I like this blog. Even though, I read Mark Dougles’ books, it is always good to be reminded about this concept. I truly believe that is the key to kingdom.
    Wish you all good trading!
    fxpanther

  2. It is a very very good book, it helps me a lot.!!
    I am not a succesful trader yet, but I will…..This is a mind game.!!!

    The best for all of you

    • Indeed Gerardo it sure is a awesome read : Trading is 99% Mental 1% Technical . Thx for commenting and Dropping by All the Best .

  3. Gerardo Frances. One must create rules that guides one decisions, one must trust and follow them.
    Good news, you have to come up with only 6 rules to find great trading opportunities.

    1,Which direction you trade? —-Direction
    2, Where do you enter the market?—Timing
    3,Where do you place your stop?
    4, Where do you place your profit?
    5, What is your reward risk ratio?
    6, How do you manage your trade?

    Once you have that, rhen find your risk profile. Risk lowest possilble amount you can. That ensures that you can execute your trade plan and stay calm during trade. If your risk is beyond your risk profile, you become emittional. Then it is over, as you do only bad decisons.

    I am convinced all trading mistakes stem from the fact that the trader exceeds his/her risk profile!
    Wish you all good trading!

    • Yeah six great essential Points made , Number 7 is > Consistency to Carry out their plan Consistently .

      Unfortunately for most once a trader has all those pieces of the puzzle in place they have that one last thing to accomplice .

      This usually occurs when a string or losses sets in and during that draw-down period they loss faith in there blueprint .

      ” Well, I’ve had a few losers here, I wonder if I should start applying a Stochastic to my chart to see if that helps me”. And before you know it there down the rabbit whole once again .

      Great points made especially on Risk profile which would certainly stem Draw down period and Psychology issues .

      Unfortunately most coming into trading are more concerned with how much they can make neglecting how much they can loss before placing Trades .

      Cheers Gerardo !

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