The truth about trading ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­

How $73 a Week Becomes $711k in 5 years

2 + 2 is 4…

While that used to be considered an absolute, even this has been questioned.

But I assure you, it is 4, it will always be 4.

Here is something else that is questioned by traders, but it is pure math.

$73/week for 5-Years = 711,750

I’m sure a few are getting out their calculators and checking and will quickly see that $73/week for 5-years is actually only 18,980.

So how does it become 711,750…

$73/week becomes 711,750 through the combination of the following 2-things:

Low-Risk Strategy Powerful Compounding

While everyone else is out there gambling on which crypto is going to take off (and risking a ton doing it), you can actually do far, far better with the simple combination of a low-risk strategy combined with powerful compounding.

The #1 Mistake to Avoid

What is the number one deadly trading mistake that will kill your account and possibly even your trading career if you are not careful?

Most traders know what this account killing, career killing mistake is.

But the problem is that they keep making it, they make it over and over and over again.

It is a reoccurring problem and it is one that is shared by beginner traders and experienced traders alike many times usually.

So because you're going to know what this is for the most part, it is important for us to discuss the reasons for the trading mistake and to discuss how to avoid the mistake and still achieve your goals.

So what is it?

The number one deadly trading mistake committed by both beginners and experienced traders alike is over trading.

And there are a couple of definitions of over trading that will fit based on what we're going to be discussing today.

The biggest one is: you know you are over trading when you have too much open risk, either in an entire strategy or on a single trade or group of trades, you have too much open risk. You are trading a strategy that has too much risk for your account size. You're trading too much risk based on your risk tolerance level.

Any of those three can be included as a definition of over trading.

But this is a big one and it's usually this one that gets traders started down this path and that is simply taking too large of a trade size on the trades that you're taking.

Now, over trading is when you have too much open risk and when you have too much open risk, there are several ramifications that you have to deal with.

1. Obviously, it can blow out your account.

And for some of you, if you can't easily replenish your account, that might end your trading career at least temporarily.

So, you want to avoid this if at all possible. You do not want to put your account in a position where it can blow out.

2. It can affect your ability to follow the rules of a strategy.

And the reason is because if you're taking too much risk, what happens is if you suffer a couple of 3 or 4 losses in a row, all of a sudden you take the next trade, you have a profit, but it's not time to exit yet.

It's a strategy where the profits run, but you've just taken three or four losses and you can't take another one in your current position.

Is that a profit?

And so you're like, “Ok, I can't let this turn around and be another loss. So I'm going to go ahead and take my profit.”

You've just violated the rules of the strategy.

Why?

Because you're risking too much. On the flip side of that, which I see just as often, is: You have taken a couple of losses, you're in another trade, it's also losing and you're supposed to get out at a loss, but you're certain, it's going to turn around and you can't afford to accept another loss.

And so what do you do?

You hold on to a losing trade and it keeps getting bigger and bigger and bigger.

And before you know it, you have possibly blown out your account and you cannot trade the strategy anymore.

Those are the two major areas where it can affect your ability to follow the rules of the strategy.

3. It can affect your ability to continue trading after a series of losses.

You're taking the trades; you're risking too much. You suffer three or four losses. You don't like the next signal. You looked at the market. You don't like the entry. You don't think it's going to work out.

You don't take it because you can't afford another loss and you've already decided this is probably going to be another loss.

It's not… It's a winner.

And guess what?

You just left a winner off the table and then you say to yourself, “Oh, I can't do that. I need to follow the rules.”

So you take the next signal, whether you like the strategy or whether you like the trade or not. You’re going to take it. You take it and it's another loss…

How many times has something like that happened?

I know I'm preaching to the choir right now because I've talked to thousands of traders in my trading career.

And this is common.

I've run into this myself many, many times and the culprit is usually because you're over trading, right?

4. It can create margin issues if you're over trading and you suffer a couple of losses and you didn't prepare properly to suffer whatever size of a drawdown the strategy has.

You may create a margin issue which will prevent you from continuing to trade the strategy.

And now you've just assured yourself a losing attempt at a strategy because you can't continue trading it.

…and you're off to the next strategy.

These are all things that happen all too often again and again and again…

Even though traders know that over trading is an account killer and it's a career killer, they still make it over and over again.

And that is the Truth About Trading.

Stay tuned for next time as I break down the “why’s” behind traders mistakes.

Trade Smart,
Ryan Jones

GET MORE OUT OF YOUR TRADES WITH TRADEPARTNER

There are 3 main components of TradePartner:

SmartFills get you the best fill every time. You could sit there and place an order at the Bid and just keep canceling and replacing your order… or you could let SmartFills get you the best price.

SmartOrders help reduce risk. This stemmed from a $1000 hit to my profits I took all because of brokerage limitations. That’s gone.

SmartShare allows you to link to your other services. You’ll never have to worry about missing a trade.

Access TradePartner Here

unsubscribe ©2024 by Spyrol Group ("SG"), Protected by copyright laws of the United States and international treaties. This Newsletter may only be used pursuant to the subscription agreement and any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), in whole or in part, is strictly prohibited without the express written permission of: Spryrol Trading Company, 414 SE Washington Blvd., #112, Bartlesville, OK 74006. There is a very high degree of risk involved in trading. Past performance is not necessarily indicative of future results. Spyrol Group ("SG") and all individuals affiliated with this site assume no responsibility for your trading and investment results. All the material contained herein is believed to be correct, however, SG will not be held responsible for accidental oversights, typos, or incorrect information from sources that generate fundamental and technical information. Trading carries significant risk. Futures and futures options trading carries significant risk. Trading securities, security options, futures and/or futures options is not for every investor, and only risk capital should be used. You are responsible for understanding the risk involved with trading. Any performance results discussed herein represent past performance, not a guarantee of future performance, and are not indicative of any specific investment. Due to the timing of information presented, investment performance may be adjusted after. There can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly will be profitable, equal any corresponding indicated historical performance levels or be suitable for your portfolio. All data is provided for informational purposes only and is not intended for trading or investing purposes. SG expressly disclaims the accuracy, adequacy, or completeness of any data and content provided by financial exchanges, individual issuers, their respective affiliates and business partners and shall not be liable for any errors, omissions or other defects in, delays or interruptions in such data, or for any actions taken in reliance thereon. SG makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any data contained herein. The data may not be further redistributed or used to create indices or other financial products. The views expressed herein are subject to change at any time based upon market or other conditions (such as domestic and global economic trends) and are current as of the date of publication hereof. The information, analysis, and opinions expressed herein are for general information only and are not intended to provide specific advice or recommendations for any individual or entity. SG emphasizes that investment in the securities of smaller companies can involve greater risk than is generally associated with investment in larger, more established companies, and can result in significant capital losses that may have a detrimental effect on the value of your investments. Nothing contained here within is intended to constitute legal, tax, securities or investment advice, nor an opinion regarding the appropriateness of any investment. The general information contained in this publication should not be acted upon without obtaining specific legal, tax and investment advice from a licensed professional. Please remember that all investments carry some level of risk, including the potential loss of principal invested. They do not typically grow at an even rate of return and may experience negative growth. As with any structuring of a portfolio of investments, attempting to reduce risk and increase return could, at certain times, unintentionally reduce returns. The information, analysis and opinions expressed herein are for general, impersonal information only and are not intended to provide specific advice or recommendations for any individual entity. For more detailed information you can click here: Website | Privacy Policy | Contact Us Spyrol Trading Company 414 SE Washington Blvd., #112 Bartlesville, Oklahoma 74006