Sie sind auf Seite 1von 1

SUPER TRADER Right now I am reading "super trader" by Van Tharp, nice book, in the book he po int some

possible mistakes that we can make in our trading. Here are a few common mistakes: - Entering on a tip or emotion or something that doesn t correspond to one of your well-thought-out systems - Not exiting when you should be stopped out - Risking too much money on any particular trade - Exiting too soon on emotion - Doing anything because of an emotional reaction - Not following your daily routine - Blaming someone or something for what happens to you rather than accepting per sonal responsibility - Trading multiple systems in the same account - Trading so many trades in the same account that you cannot keep track of them - Trading a system when the market type has changed and you know that the system now will perform poorly - Concentrating on the entry for a system, not the potential reward to risk rati o in the trade - Needing to be right and taking a profit too quickly or not taking a loss just to be right - Not having a predetermined exit when you enter the trade - Not keeping track of the R-multiples and the general performance of your tradi ng system In the book he gave a brief quiz on some key elements that considered absolute fundamentals for all traders. You must understand these elements if you want to compete as a successful trader. Answer these questions before you read the answers in the next section. 1. You buy a stock for $25. You want a 25% trailing stop.Where is your initial s top? 2. The same stock moves as high as $40 and then goes back down to $37. Where is your stop? 3. You have a $25,000 account and don t want to risk more than 1% of your account on that stock. How much of your account can you risk? 4. In light of your answers to question 1 and 3, how many shares did you buy? 5. You buy another stock for $38, but this time your stop is only 50 cents away. How many shares can you buy to risk only 1%? 6. You think that s too many shares, and so you want to base your stop on the vola tility. The average true range over the last 10 days of the stock has been $3. Y ou decide to base your allocation on volatility. How many shares can you buy? 7. Since your stop is still at 50 cents, how much are you risking on this positi on? 8. What s your total investment amount for the first stock and for the second stoc k? How is this different from risk? 9. What is the variable that accounts for most of the performance variability yo u are likely to encounter (assuming that you have your psychology together)? 10. What have I defined self-sabotage to be? Bonus question: You sell the first stock for $50, or a $25 profit. What is your R-multiple? In other words, your pr ofit is what multiple of your initial risk? you should read this book, I hope you can be a SUPER TRADER after reading his bo ok for more article visit us at