Coach's Playbook is back, baby! And that means it's time for our Topstep performance coaches, Dan, Hoag and Mick, to breakdown the game film and provide you with the choicest pieces of trading strategy.
In today's video, the coaches discuss the three best ways to start out strong in your Funded Account. Remember to tune in every Wednesday at 11:30 AM CT for new live episodes where you can ask your own trading questions, or just hang out with some guys with Chicago accents.
Earning a Funded Account is exciting. But sometimes, a trader's eagerness to make money fast overrides their discretion when choosing entry points. This leads to a classic case of over-trading.
Unless you're working at a high-frequency shop, trading isn't a race. It takes time and discipline to build your account responsibly. Trying to trade everything will get you nothing.
If you think about it, this advice applies to many disciplines outside the trading industry. If a baseball pitcher tries to throw too hard, they'll start missing the plate. If you always drive with the pedal to the floor, you're eventually going to wreck the engine or crash.
Let the market come to you, and don't force entries just because it feels like you have to. Remember, you never have to do anything. It's your account.
The most dangerous word in trading is "size." Everybody wants to trade size. Some people treat it like it's a reflection of their self-worth. It's not. So don't let yourself get dragged down into the anatomy-swinging contest. None of that is going to help you become a better trader.
If you want to trade big, you're going to have to learn how to trade small first. Take a look at any of your favorite traders, and you'll that notice none of them started their careers trading 1,000-lots. The truth is, if you can't be profitable trading 1-lots, then you sure as hell won't be profitable trading 10-lots. Focus on what's going on in your account, and stick to your plan.
Have a Plan
Speaking of plans, have one. The only way to objectively measure the viability of a trading strategy is by testing it. And the only way to test it is by following a procedure that is repeatable. Define the parameters of your strategy including time of day, duration, entry criteria, and most of all, exit criteria. Don't get in unless you know exactly where you're getting out.
Follow these rules and you'll put yourself in the position to start strong in your Funded Account.