How to become profitable and grow your account!
(A thread)
When I was struggling through my breakeven phase, I found these key tips helpful to push myself to become a profitable trader.
(A thread)
When I was struggling through my breakeven phase, I found these key tips helpful to push myself to become a profitable trader.
1. One of the most common reasons a trader is not profitable is due to poor risk management. You must have a max loss per trade, align this max loss with a TA supported risk level. Prevent unnecessary losses.
2. Plan your exits. Scale out along the way, I prefer to scale out 1/4 of my position at a time. This will offload your risk and lock in profit. Base hits->consistency->profitable.
3. You must EARN the right to size up. Many traders take on far too much size/risk that they are not emotionally comfortable managing. Your account can only handle so many FOMO/full send trades.
4. Don’t always shoot for HOD. Although seemingly possible, dig deeper into the chart and identify intermediate resistances you can scale at. Locking in 5-10%ers grows the account. Move your stop loss up as the chart progresses.
5. Don’t take calls blindly. Once you take a trade based on someone else’s call you’re no longer trading your plan. Assess and then execute if it meets your risk parameters. Calls are just ideas, you don’t impulsively have to take them.
6. Instead, plan a few trades the night before. If they work out, you build confidence and are able to identify winning setups. If they fail, you practice proper risk management and take minimal loss as the trade was planned. Organization is essential.
7. Avoid being to harsh on yourself. Self-loathing only bring in more negative energy towards your trading experience. Losing happens. Remain positive as best as you can, you’ll laugh about it a year from now.
8. Study your trades. Take notes while you are in a trade to review your thought process. This is very important. Plot your buys and sells after charting and ask yourself: would you take the same trade again? If not, explain why.
9. Identify what setups you can trade well and take advantage. If you are profitable on only 2 setups, then wait for your edge to be present and only take those trades. Slowly build your arsenal of strategies. Trading is a game of longevity.
10. Most importantly, have fun while trading. We trade to have a better quality of life; not only financially but also emotionally. Take the time to understand yourself and the markets. You have the potential to become profitable. How much effort are you willing to give?
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