A Level Above Risk Management!

Let’s say may scalp trade ka. Pumasok ka sa 1-dollar na price.

Ang stoploss mo ay nasa 0.95 dollar at may certain condition ka para sa exit.

Anuman mangyare sa trade ay bound ka to exit at 0.95 dollar kapag yung trade ay nag go against you.

Yan ang mahalaga.

Now, lets say may swing trade ka. Pumasok ka sa 10 dollars at ang stoploss mo ay nasa 9.5 dollars.

If the trade goes against you ay eexit ka sa 9.5 dollars.

Yan ang risk management. It helps you take small losses sa bawat trades mo.

Risk management is very important kasi ito ang nagpipreserve ng capital mo.

Your capital is your blood sa game ng trading.

Lets take the same scenario pero ibahin natin konti ang condition.

May swing trade ka. Bumili ka sa 10 dollars. May exit ka sa 9.5 dollars.

Yung price nagstay sa 9.7 dollars for 3 days then umakyat sa 11 within a week then next week ay bumaba sa 9.6 dollars.

The same strategy. The same set-up pero bawat trader ay magkaiba ang gagawin when this type of scenario happens.

May aatras ng stoploss to 9 dollars. May magreremove ng stoploss at manually babantayan ang price para sila na magclose. May aadvance ng stoploss to 9.55 dollars. May eexit ang trade sa breakeven. May ibang eexit na ang trade once nag green.

Ang tawag sa mga yan ay Trade Management.

The way you manage a trade after mo pumasok.

Risk management is important but that won’t matter if hindi mo alam ang trade management.

Trade management plays a major role in the success of a trade.

Yung way mo mag add ng BP or capital is part of trade management.

Yung way mo magrevenge trade ay part ng trade management.

Andaming areas sa loob ng isang trade at even outside a trade na sakop na ng trade management pero di ka lang aware.

Lets say bumili ka ng stock sa 5 pesos.

It did not move for a few days. You grew impatient at plan mo na eexit ang pera mo sa stock na yun.

Some traders kapag malagay sa ganitong sitwasyon would exit a trade and blame it all on the stock being illiquid or laggard.

Some traders would blame themselves as lacking discipline and being impatient kapag naexit nila at lumipad ang stock.

Impatience although some think na emotion ito is actually a behaviour. Ang root ng behaviour na ito ay yung pagkakaroon ng certain timeline sa utak mo of when that stock should move.

Frustration ang emotion na involved sa impatience. Impatience is a behaviour driven by frustration of not meeting your set timeline or expectation.

Kapag emotion ay baka isipin mo na trading psychology ang pinag-uusapan natin.

What you feel is about trading psychology. What you did or what you are going to do with that trade is all about trade management.

Eexit mo man yun or ihold or whatever ay under sa trade management.

Trade management governs a lot of your trading errors.

You MUST attend our upcoming Trade Management Bootcamp kasi mag iiba ang takbo ng trading mo when you finally learn how to manage your trades.