The more time I spend studying and trading the markets, the more I realize how the lessons in trading are so correlative to other routes one can take in their professional lives. As I think back over my previous profession, I realize how profound some lessons were early in my career and how they provided the path to becoming what I excelled for nearly 20 years.
I stumbled across the interview below today with Phil Hellmuth, self-described “Poker Brat”, where the discussion was centered around some of his antics on the felt and how his poker playing strategy can (and should, imho) be utilized as sound trading advice.
While I realize I covered this same topic in a recent post, I find it so important that I felt I needed to say it again. Starting into a trade with smaller size allows you to be prove your theory correct and ONLY then can you add to a larger size. For some reason, I neglect this on the long side of trading and, after some deep analysis within my long trades, I am end up right on the direction but am either:
- starting way too big
Digging deeper into the charts and finding hourly support and resistance levels is critical to understanding how much risk is appropriate for your trade. Not all trades are created equal, so therefore sizing should reflect as such.