The following are the Top 10 Tips for traders who strive to achieve consistency and professionalism in their trading:
- In trading, you are either in the market or you are not
- The market is an auction between buyers and sellers. Build an excellent foundation on how the market really works and the sky is the limit
- Trading with poor data is the same as trying to learn to be a pro-golfer while practicing with a bent golf club
- Work on your mental game more than your technical game. With a clear mind, the technical information becomes obvious
- Check your negative attitude at the door
- Don’t ever trade without a preset daily loss limit. Daily loss limits allow you to stay in the game long enough to make it
- If you are not well-capitalized, continue to save until you are.
- Don’t ever use your full buying power. Only risk a small portion of your account on every trade
- Do you spend most of your effort on managing your emotions or your trade? Pros manage the trade and market information. Others expend most of their effort managing how they feel about the trade and themselves
- Professionals have a plan and they wait for the market to come to them. Non-professionals plan and trade at the same time while constantly hunting for something to do
Note that the mental/psychological aspect of these tips is as prominent as the technical and business side. A stool with 2 legs can’t stand. At a minimum, professionals do a great job at balancing the mental (psychology, self-talk, attitude, etc), technical (software, data, tactics, etc) and business (capitalization, risk control, position sizing, environment, etc) aspects well. A trader who neglects any of these will see an immediate negative outcome.
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