Money is not the focus of trading.
This interesting article came to my attention from one of my clients . There must be something in the air because this topic has come up in a couple of different places. I want to thank Stephen Crane for sharing this article with me.
The topic is the subject of many conversations I have with my clients. The conversations usually begins something like ‘trading is not about the money, its about the trade.’ That sparks a lot of conversation around the purpose of money and how do we use it in our trading. Money is a way of measuring our trading results but shouldn’t be a goal of our trading. If we focus on making better trading decisions, the money will follow. But focus on making money, what ever the motivation, is a recipe for losing money in the market.
My previous posting on money management is a different way of looking at how we should look at managing the money of a trade. So this article is yet another reason to have a new way of thinking about the money in our trades.
Here is the article, Forget About the Money, Focus on the Price Action. I hope you enjoy. I look forward to your thoughts.