Do you like risky trades?
Traders usually have an appetite for risk. But do you bite off more than you can chew?
This week’s episode of SteadyTrade with Kim Ann Curtin, Stephen Johnson, and Tim Bohen tackles the ins and outs of managing risky trades.
It’s not just about technical skills … you have to be honest with yourself. How much willpower do you have? Should you outsource risk management to your broker?
Stephen and Tim have opposite views of risky trades. And Kim breaks down why each one’s process is the right one for them. Tune in to find out which strategy works best for you…
Can You Profit from Risky Trades?
Stephen says there are many consistent short sellers on the internet but not many consistently profitable ones. It only takes one big miss to wipe out your gains. That’s the danger with risky trades…
Bohen thinks newbie traders who don’t take time to learn basic rules are part of the problem. He breaks down the difference between a cash account and a margin account. And how each one can impact your trading.
Kim thinks Bohen’s passion is hysterical. He pulls no punches when it comes to the mistakes that drive him mad.
Find out how many years it took Tim to build discipline around risky trades…
Risky Trades: What’s YOUR Number?
Tim and Stephen want to know each other’s numbers — their max loss numbers. Tim calls it your “oh s***” number. Find out where they each draw the line on losses…
Kim mentions her Trading EQ course helps with self-control. She says new traders often assume they’ll be cool as a cucumber when they take risky trades, but there’s a scientific reason why they mess up.
Plus, find out what she says happens to our emotions when we size up in a trade. And how we can put ourselves back in control of them.
Who’s Responsible for Risky Trades?
Stephen admits he hands responsibility over to his broker when he takes risky trades. He discusses the different types of loss limits brokers can impose, and the penalties you get if you don’t use their system correctly.
Bohen is passionate about the DIY approach to self-control. He refuses to give the key away to someone else. He thinks building your own discipline is the only way to go.
Kim says ego is often the reason traders lose control of risky trades. They think the trade should go a certain way but won’t accept reality when it doesn’t.
She ends the show with strategies for managing risky trades. You don’t want to miss that advice!
What Do You Think?
Do you like taking risky trades? Have you built up good discipline? Do you manage your own risk or let a broker do it for you?
We’d love to hear what you think, so drop a comment.
Remember: if we select your question or comment as an on-air topic, you could win a SteadyTrade mystery gift box. Leave a comment below or on YouTube!
Thanks for tuning in to the SteadyTrade podcast. Stay tuned for weekly episodes featuring the hottest topics for aspiring traders.
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Meet Our SteadyTrade Hosts
Get to know Tim Bohen, Stephen Johnson, and Kim Ann Curtin.
Follow our hosts on social media…
Tim Bohen
Twitter: @tbohen
Instagram: @tbohen
Stephen Johnson
Twitter: @Jonk87
Instagram: @stephenjonk87
Kim Ann Curtin
Twitter: @kimanncurtin
Instagram: @kimanncurtin
Disclaimer
*Please note that any reported trading results are not typical. Most traders lose money. It takes years of dedication, hard work, and discipline to learn how to trade, and individual results will vary. Trading is inherently risky. Before making any trades, remember to do your due diligence and never risk more than you can afford to lose.