Day Trading Tips and Tricks

April 13, 2019

Erich Senft

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Is it Time for a Trading Strategy Tune-up?

Your Trading Strategy Can Easily Be Improved

It is time for a new trading strategy if you are taking profits too quickly and letting losers run in the wrong direction.  The combination of the two often ends up shortening the professional trading careers of many a well-intentioned retail trader.   Most of the time the cause can be traced back to the trading strategy and position sizing being used, or the lack thereof. 

Trading Strategy

The answer is a Trading Strategy Tune-up

One of the most common mistakes new traders make is to begin without a well-defined trading strategy or objective.  Taking profits too quickly or letting a losing trade run are very common even among more experienced traders.  

Starting with a clear goal is important. 

  • What is your per trade profit target? 
  • How many contracts are you trading? 
  • How often are you trading? 
  • Where are you placing a stop? 
  • What is your exit strategy? 

Money Management in Your Trading Strategy

What amazes traders the most after using the Trade Manager is how much money they were leaving on the table by not having the correct amount of shares or contracts for each trade.  Ninety-five percent of trading performance is based on your position size, which is the percentage risk compared to the size of your account. Trade Manager tells you how many contracts you need to have to maximize your trading results.

NinjaTrader Position Sizing for your Trading Strategy

Automated money management and position sizing are the two most important components of trading. It’s what separates winning traders from losing traders.

Trade Manager automatically calculates the correct trade size and then enables you to place the trade directly from your chart. By the time you exit the trade, you are making MAXIMUM MONEY on MINIMAL RISK. Isn’t that the goal?

Automated stop-loss management and position sizing alone can cure most of the problems that individual traders have.

In trading, you’re not paid for analyzing charts and…you’re not paid for placing the order or having the fastest execution platform. What you are paid for is successfully managing the position while it’s in play.

Most traders obsess on finding the “best” entry point to get into their trade, when they should be focusing on where the money is being made on a trades –  The position size and the exit!

opportunity in a Trading StrategyRemember… the ONLY thing you can truly control is your risk (position size). You cannot control where the market is going to go. No one can. But, you can remove some of the stress by knowing your risk before you enter a trade and then letting an automated tool manage your position once it’s in play. 

With Trade Manager, you can enter a position and then forget about it. Trade Manager will trail your stop(s) for you. This functionality frees you up to take other trades. Think of it as having multiple fishing poles in the water at the same time. You exponentially increase your chances of getting the Big Fish!

The easiest way to tell if a trader is going to be profitable is by looking at how they handle these two cardinal rules:

  1. Do they cut losses short?
  2. Do they let profits run?

Trade Manager does both of these for you! Trade Manager is an essential trading tool that works in any trading strategy. 

It is the best trading software to ensure you take the maximum profit from each and every trade you take!

Join us in our Trade Room and see Trade Manager in Action.  Click HERE to Register.

April 13, 2019

Erich Senft

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