How to become a profitable trader [thread]
If you've been trying to trade with little or no success for any amount of time, this is for you.
This guide will contain absolutely 0% bullshit, so brace yourself.
If you've been trying to trade with little or no success for any amount of time, this is for you.
This guide will contain absolutely 0% bullshit, so brace yourself.
To become a profitable trader you need:
1: Sufficient knowledge of TA to predict which direction prices will go to with about 50% accuracy.
You don't need to be a market wizard to be profitable if you only trade setups with high risk-reward ratios (2:1 or above).
1: Sufficient knowledge of TA to predict which direction prices will go to with about 50% accuracy.
You don't need to be a market wizard to be profitable if you only trade setups with high risk-reward ratios (2:1 or above).
2: Proper risk management meaning you must think of a number that doesn't hurt to lose, and then turn it down even a bit more.
This will force you to find good R:R setups so that winners provide meaningful profit whilst losers are tiny.
This will force you to find good R:R setups so that winners provide meaningful profit whilst losers are tiny.
3: Choose your timeframe.
New people want to start with a small account and grow it fast. This can only be accomplished if you scalp because you can place many trades a day, so that's what most people want.
Everyone will tell you not to, I won't. If that's your goal go for it.+
New people want to start with a small account and grow it fast. This can only be accomplished if you scalp because you can place many trades a day, so that's what most people want.
Everyone will tell you not to, I won't. If that's your goal go for it.+
+ My only recommendation is that you first try with just one trade a day. This can be done in the 1H chart which is a more forgiving place to start learning if you do it in the morning.
4: Trading psychology
Get a notebook and a pen. For every trade you take, write the R:R factor and the reasons for taking it.
- If you have to stop and rethink the reasons you took the trade, you failed.
- If you clench at the amount you risked, you failed.+
Get a notebook and a pen. For every trade you take, write the R:R factor and the reasons for taking it.
- If you have to stop and rethink the reasons you took the trade, you failed.
- If you clench at the amount you risked, you failed.+
+It'll keep you accountable with yourself, but most importantly, it'll keep you mindful and present in the moment, thinking rationally, at the time of taking your next trade. Think of this exercise as meditation.
5: Don't cut your losses short.
That'll be controversial.
I mean your stop loss should be at the point of invalidation of your analysis, that's what it's made for.
Don't place your SL randomly because it'll keep you anxious by wanting to move it around during the trade.
That'll be controversial.
I mean your stop loss should be at the point of invalidation of your analysis, that's what it's made for.
Don't place your SL randomly because it'll keep you anxious by wanting to move it around during the trade.
6: You won't backtest nor forwardtest your strategies.
I know most of you won't, I didn't. We should, but it's boring. I preferred losing money whilst learning than doing it. That's my preferred way of learning anything, throwing myself right into the action and getting punched+
I know most of you won't, I didn't. We should, but it's boring. I preferred losing money whilst learning than doing it. That's my preferred way of learning anything, throwing myself right into the action and getting punched+
+I believe we learn the most by making mistakes, so go ahead and make mistakes, they'll teach you.
Just make sure your mistakes don't get you out of the game. That was my advantage, even when I didn't know what I was doing, my risk management was on point.
Just make sure your mistakes don't get you out of the game. That was my advantage, even when I didn't know what I was doing, my risk management was on point.
Last but not least I wanna come back to my first point about TA:
7: No single strategy will get you there.
If you just search scalping strategies on youtube, there'll be tons of them. You can definitely be profitable trading some of them, but they won't make you into a trader+
7: No single strategy will get you there.
If you just search scalping strategies on youtube, there'll be tons of them. You can definitely be profitable trading some of them, but they won't make you into a trader+
+There is no single "system" or "strategy" that'll be tradable in any market condition. Meaning you must develop a way of understanding price action that makes you capable of trading even the most confusing of market conditions.+
+I'm not a big fan of indicators, but if they help you understand price action, go for it.
I personally use just the RSI & Volume to spot divergences in momentum. The rest is pure price action and market structure, that's how the pros trade.
I personally use just the RSI & Volume to spot divergences in momentum. The rest is pure price action and market structure, that's how the pros trade.
That's all for the thread, hope it was useful.
If you liked it consider a RT & Like, plus a Follow wouldn't hurt.
If you liked it consider a RT & Like, plus a Follow wouldn't hurt.
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