Be a pessimist

It breaks with convention but in trading its okay to be a pessimist.

I’m not saying procrastinate. Far from it. All I suggest is that when you see your buy (or short) opportunity don’t picture the pound signs increasing. Don’t see the share going in the direction you’re hoping.

Instead, see it reversing, doing the opposite. See it stopped out.

About half the time, even for professional traders, it will anyway.

This simple twist in thinking helps decide the amount you risk.

Published by Day Trader

I flew fast jets for 30 years of my life. I've traded full-time, more or less, for the last ten years, initially from fundamentals and over the last few years as a dedicated day trader. I live on the North Norfolk coast.

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