Market Analysis for Aug 31st, 2021

Lessons from a Trader/Risk Manager -Bookmark This

Trading is a repetitive + rigorous process ➰

The current education system and social climate has institutionalized distractions, excessive dopamine addictions as normality

Many of you don't have what it takes to win in the markets so you need to break the cycle, day by day🏆

1. Figure out what type of system you are trading first: trend following, countertrend, mean reversion, systematic vs discretionary, algo...etc

2. Create a gameplan everyday with clear and actionable parameters, then execute accordingly

3. Boil it down to the simplest concepts + levels when you approach the markets, eliminate as many variables as possible that cluster your decision making.

Ultimately, you'll realize, price is king

Don't believe me? Ask all the other successful traders that have made millions

4. Execute said gameplan +system for at least 1 full year if you've found an edge and keep optimizing until you hit a plateau whether it's sizing issue/volatility/environment..etc

5. Don't bounce from system to system until you know all the ins and outs of what you're doing

6. Rinse and repeat the same repetitive and rigorous processes that got you over the hump

You must keep flipping the coin once you've secured an edge

eg. Heads you win $180, tails you lose $50

7. There will be times where a winning streak feel like euphoria and losing streak create frustration and doubt. 

You’ll eventually get over it, remember:

Hard times create strong men

Strong men create good times

Good times create weak men

And, weak men create hard times

8. Lastly, keep your processes and self accountability simple that you could explain to a 15 year old kid

You have grit, nimbleness and adaptability that most financial institutions cannot compete. eg. many underperform S&P 500

Those that specialize in financial mumbo jumbo to fancy up are typically full of 💩

Ricky Wen is an analyst at, where he writes a nightly market column and hosts the ES Trade Alerts premium subscription service.