Kardec TraderFutures Trader. Creator of The Midas Touch. Mentor

Do this if you’re new to trading…

21 Nov 2023 · 1 min

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Short advice from Kardec Trader distinguishing two trading stages: (A) traders seeking profitability and (B) traders who have an edge and want to scale. For beginners (Stage A) the emphasis is on keeping risk consistent, focusing on R, minimizing exposure, practicing setups, testing strategies, and staying alive to take many trades. For scalers (Stage B) the focus is on subjective position-sizing — identifying when to increase or decrease size as market conditions change.

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A few words of advice that I want to leave to you guys, right? Understand there's two stages. One stage is a trader that's trying to find profitability, and second is a trader that has found an edge, has found some profitability, but they're trying to scale up. I'm assuming most people are in stage A. If you're in stage A, guys, keep your risk consistent, focus on R. Don't increase your risk size trying to find an edge. And your job here is to just stay alive. Just be able to take as many trades as you possibly can with the least amount of risk, least amount of exposure. This is where you want to get practice in, where you want to test your strategies, test your setups, and just stay alive. Simple as that. If you're in stage B, this is where you have to be able to identify what trades require me to put on a little bit more size. How do I increase size when it's needed, how do I decrease size when markets get difficult? How do I kind of become subjective to that, right?