Trading will educate you about yourself. You will learn your strengths and weaknesses.
Learning to trade well will make you a better person. Good traders do well managing their ego, fear, and greed. Also risk management will help in other areas of your life.
Trading is a good measure of your abilities. It is competitive, but happens on an even playing field.
A great trading system can be used to compound capital over months and years.
You can grow your capital to levels that can eventually change your life.
Nothing else offers the personal control over your time and financial freedom like trading.
What else are you going to do? Work 40 hours a week in a job you don’t like, making money for someone else for 40 years?
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Traders must have the perseverance to stick to trading until they are successful. Some of the best traders are ones that had the strength to push through the pain, learn from their mistakes, & keep at it until they made it. All profitable traders had to survive the learning curve
Great traders cut losing trades short. The ability to accept that you are wrong and put your ego aside is the key to professional success. Setting stops is one of the top skills for a trader to learn. They need to keep losses small but give room for a profitable trade to play out
Ten Golden Trading Rules That Can Help New Traders:
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Never add too a losing trade. In adding to a losing trade you are already wrong but now become more wrong with a bigger trading size. Adding to losers makes you a counter trend trader that will eventually end badly when you find yourself on the wrong side of a strong trend.
Never lose more than 1% to 2% of your trading capital on any one trade. This means use position sizing aligned with stop loss placement so when you are wrong the loss is not big enough to damage you financially, mentally, or emotionally.
Here are 10 great technical trading rules that will help you build a systematic approach to trading: 👇
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Start with the weekly price chart to establish the long term trend, and then work down through the daily and hourly charts to trade in the direction of that trend. The odds are better if you are trading in the direction of the charts trend.
In uptrends, the best strategy is to buy the dips. In downtrends, the best strategy is to sell short into each rally. Always go with the path of least resistance.