In this episode, Brian Montes emphasizes the importance of risk management in swing trading. He explains that risk management is essential for preventing portfolio blow-ups and defines a trader's success. He warns against becoming complacent during bull markets and highlights the unpredictability of the market. Brian discusses how emotions can negatively impact trading decisions and emphasizes the need for rational decision-making based on strategy. He provides principles for effective risk management, including defining risk tolerance, setting stop losses, and proper position sizing. Brian also emphasizes the importance of keeping a trade journal to identify patterns and continuously improve risk management strategies.

Takeaways

Risk management is essential for preventing portfolio blow-ups and defining a trader's success.

During bull markets, it's essential to avoid becoming complacent and remember that the market is unpredictable.

Emotions can lead to impulsive actions that deviate from the trading plan, so keeping emotions in check is crucial.

Principles for effective risk management include defining risk tolerance, setting stop losses based on technical analysis, and proper position sizing.

Keeping a trade journal helps identify patterns and continuously improve risk management strategies.

Do you have a question you want answered on the podcast? Email me at brian.montes@icloud.com

Looking for coaching, education and community? Check out the Disciplined Traders Academy - https://disciplinedtradersacademy.podia.com/

Risk Management - The Key to a Long Term...