Thread by @SJosephBurns

10 Things I Wished I Knew When I Started Trading:

A Thread 🧵👇

In trading less is more, less activity generally leads to more profits and smaller positions sizes leads to better odds of keeping profits over the long term. Less activity in trends allows an easier way to make money. Less position size leads to smaller losses when wrong.

It is better to specialize in trading, pick a market, pick a method and master it. It is better to be a master of one set up, pattern, stock, market, or system, than to dabble in many.

Trading is not about being right all the time it is about limiting losses when you are wrong and maximizing profits when you are right.

Only check prices on a time frame that is needed and required for your method, watching ever single tick is not optimal for the vast majority of trading methods.

The big profits are in the multi day and weekly trends not the intra-day range.

It is crucial to understand the difference between what is noise in price movements and what are real signals. Studying historical charts and backtesting will separate the noise from the signal.

The weakest part of any trading method is the trader executing it. There are many ways to make money in the market but they all require discipline and consistency to make any of them work long term.

The traders that manage risk exposure the best are generally the ones that win in the long term.

Only trade liquid markets, stocks, commodities, cryptocurrencies and options. Wide Bid/Ask spreads can make a good system unprofitable.

If you trade in the direction of the trend for your time frame, manage the risk of ruin, and stay disciplined you can make money in the markets, but if one of these are missing it will cost you money to trade, sometimes a lot of money.