• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

TraderGav.com

Gav's trading blog - Perseverance, Consistency, Confidence

  • Home
  • Start Here
    • Back to Basics of Trading
    • Resource For Traders – The Best Tools for Traders
    • Learn Trading Articles
    • Sierra Chart Resource
  • Blog
    • Blog Posts
    • Other learning resource
    • Dummy Collection
    • Harmonic setups
  • About Me

Random trading thoughts : LOCATION LOCATION LOCATION

by Gav Leave a Comment

I have been putting in a great deal of time and effort in futures trading lately. From refining strategy, writing plans (scrapping plans), back testing (not your fancy automated testing, I basically replayed markets), setting up accounts, negotiate commissions etc.

The intensive process has almost burnt me out sometimes, but it is also a good chance for me to refer back to my old journals, some worth-reading trading books, and also do some deep thinkings about things.

So if you start reading some random short posts with some trading Craps/Wisdoms from me, you know I am working hard.

Anyway, here is something in my mind when I was back testing.

LOCATION LOCATION LOCATION

20131101_180316In case you haven’t noticed, trading is very similar to property purchase or development, it about Location, Location, Location. (Of course, during crazy market cycle, like what is happening in Australia right now, properties at some waste lands, or crappy locations, can also be sold for a couple of hundreds thousands, who are those buyers?!, really.). But, we are looking for consistent result, and long term prospect, then location is a key consideration. This is common sense.

Would you build a house without considering the location and the surroundings?

The same applies to trading. Why would you want to trade your freaking, holy-grail like pattern in any place? Do you wonder why did your favourite chart pattern stop working? Maybe a quick refer back to your trading journal might help. Pull out the charts, figure out why it failed.

Sometimes, when things get complicated, I like to refer back to the basic. How to make a trade? The simple rule on the first page of my trading journal is Location, Path, Management. I think you can guess what are these 3 words referring to. If not, you need to spend sometimes to think about them before making your next trade.

I hope this short post gives you some food for thought.

Until next time, trade well.

 

 

Filed Under: blogs, Learn Trading

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Best Tools For Traders

My Name is Gav.
I am a Father, Husband, Trader, And Blogger. A serious coffee addict. I started training since 2005, mainly on FX and Futures.

About Me

Footer

Recommend FX Charting

Recommended Training

FXSAnalytics

Copyright © 2023 · Affiliate Disclosure · Privacy