It is highly labor intensive and it requires lots of disciplines. If you do it right, it is tough on the body, but easy on the mind.
Do not listen to anyone. Find your own groove, ie comfortable style and comfortable product.
Do not touch / speculate on rubbish. Stick to liquid names and cut your losses quickly. You do not want to make small gains, but hold on to large losers.
Do not jump time frames when your trade went against you in your time frame. Do not justify turning a short-term trade into a long-term investment.
You want to trunscate the gain and loss to be more symmetric. While a higher winning ratio, and >1 target/stop loss ratio is not required for positive expectancy, it is much easier on the mind.
Having said all these, it takes lots of time, ie 10K screen hours, to learn yourself and train your human brain to react like machines subconciously.
Managing complex book/long-short portfolio isolates you from single name loss so you can stay mentally relaxed and detached to individual ticker PnL.
Just my 2c.
Do not listen to anyone. Find your own groove, ie comfortable style and comfortable product.
Do not touch / speculate on rubbish. Stick to liquid names and cut your losses quickly. You do not want to make small gains, but hold on to large losers.
Do not jump time frames when your trade went against you in your time frame. Do not justify turning a short-term trade into a long-term investment.
You want to trunscate the gain and loss to be more symmetric. While a higher winning ratio, and >1 target/stop loss ratio is not required for positive expectancy, it is much easier on the mind.
Having said all these, it takes lots of time, ie 10K screen hours, to learn yourself and train your human brain to react like machines subconciously.
Managing complex book/long-short portfolio isolates you from single name loss so you can stay mentally relaxed and detached to individual ticker PnL.
Just my 2c.
