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
Letting a winning trade run as far as it can go on your time-frame, insures that you have big enough wins to cover your small losing trades. The key to profitability is managing a winning trade for maximize win size.
Avoiding the risk of ruin by using a small portion of your capital on each trade. If you risk it all often enough, you will lose it all eventually. Small win percentages can compound into huge gains without the risk of large drawdowns.
Being reactive instead of predictive on actual price action is a winning principle I have seen in many rich traders. Letting price lead the way is one of best strategies for cig wins through catching trends.
Letting price action give you signals is trading reality. Trading based on what the price should be is wishful thinking. It can take a long time for a market price to become what you thing it should be while trends can happen fast for no apparent reason.
Great traders are bullish in uptrends, & bearish in downtrends, until the end when the trend bends.
Great traders care about making money more than anything else; proving they are right, showing off, or predicting the future is not as important as hearing the cash register ring
• • •
Missing some Tweet in this thread? You can try to
force a refresh
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.
Ten Golden Trading Rules That Can Help New Traders:
A thread 🧵 👇
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: 👇
(A thread)
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.