My core trading principles aka how I see markets

Before I start to explain my strategy I need to go back in time, go back to my childhood years and bring up some baggage which I will carry on throughout my life. Maybe you wonder why I start from this corner, you’ll get the point. During the years I have been trading I have witnessed a lot from my own character. Thousands of trades I have executed with real money on the table have shown me the real side of me. From days when I thought I am an unstoppable money making god to days when I was acting like an insecure pathetic scare as shit child. Greed and fear got the best and worst out of me. So why I’ve started with all this mambo jumbo childhood stories? Because roots of your reactiong are based deep down in your upbringing. All the dreams, the need to shine, to be accepted, to prove yourself, to differentiate with bit of a emotional spit is making you do crazy things once the money are on the table. First thing and best thing to do is try to identify yourself in all this mess, understand what are you after, accept the emotions because they are part of your DNA and they reflected in your ability to FOCUS. Because once you know the state of your emotional being and awareness which you are bringing to the trading table, you can focus on the next big thing – trading itself. And since the game of trading is most importantly about being able to handle your emotions it is absolutely key that you got this part at the top of your MUST-HAVE focus list. I will not go into much of a detail here, plenty of books, articles and blogs have been written about this topic. Go and explore! And by the way, knowing that emotional part of trading is important is not the same as experiencing it. It is a continual never ending process and it is important to be aware of your emotional daemons at all times.

As I have stated it took me a while to discover what my baggage is. This has created a nice list of god and bad behaviour I could easily imprint into my trading if I am not aware of of my emotions, if I am not fully aware of my actions. Once I knew what my strengths and weaknesses are (approx. after +100 trades dealing with real money of meaningful size) I could have start focusing on mastering my strategy. So what is my strategy?

CORE PRINCIPLES

Will be updated by January 2015 …