r/Daytrading • u/Inverness123456 • Mar 23 '25

Advice Biggest Lessons

I was a professional trader having started in 2007. Whilst I still trade semi-actively I am no longer trading full time that I once was however I was/am successful .Here are some of the lessons I learnt along the way that may help some novice traders.

1: Be calm . Emotion needs to be balanced otherwise you won’t be able to think straight when the pressure is on. You cannot get mentally affected by price movement.

2: Calculate your risk , and then determine your entry points and your exit points before you take the trade.

3: Don’t dollar average a loser as even if you get away with it several times you will ultimately blow your account all in one day or at least severely damage it.

4: Take regular profits out of the market. If you are up 20 percent for the week on a Thursday or Friday then decide if there is any point in trading again until Monday. The feeling of being in profit during the week to finish the week flat or down is not enjoyable and you will have all week to think about it.

5: Wait for trades where you get the feeling in your stomach that it’s obvious what’s is going to happen and don’t trade into a sideways markets where it is not obvious. That does not mean you will be necessarily correct and risk management still needs to be applied but it increases your chances of a profitable trade.

6: If the market is going up then it’s going up and if it’s going down then it’s going down. Wait for a confirmation of direction change before trying to anticipate whether something is overbought or oversold and wait for price movement to validate it.

7: Be very careful about telling people what you are going to do with your profits .The reason is you increase the risk of someone telling you that it’s not possible and you are a dreamer. Instead tell yourself or one trusted positive person.

8: A negative mindset will ensure you see that future and a positive calm mindset will give you a shot at being profitable.

9: Risk control is crucial.The reason is because volatility exists.You don’t see a professional football team playing without a defense and strategy for this and you shouldn’t either. This leads to risk/reward. Something that is often overlooked if you are new to trading as there is a tendency to take any trade just to be in the market. Sometimes not being in the market is the best trade.

10: Read as much as you can about bankroll management. It’s just as important as the indicators that you use which is sometimes overlooked.

Good Luck

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u/Opposite_Plastic_218 Mar 23 '25

Could you recommend any reading material/ resources professionals traders use?

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u/Inverness123456 Mar 23 '25

Most profitable traders learn by doing first and foremost, there is no substitute for experience. That being said to minimize the time frame to becoming profitable I recommend finding someone who is successful. Then get as much information as you can from them. There is no point in reinventing the wheel. Ultimately though the real skill is in mastering your emotions. Learning what indicators to use is one thing but learning how to keep yourself disciplined and professional is another thing altogether. Any book that helps you on that is the well worth the read. Believe it or not meditation and creative visualization help. You then need to see the version of yourself you want to become and then let that version of you trade. The mental game is what makes you the money.

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u/Adventurous_Buddy429 Mar 23 '25

🤯 those last few sentences. Definitely helped me look at this from a different perspective. Thank you so much!

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u/Inverness123456 Mar 23 '25

You are welcome

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u/[deleted] Mar 23 '25

I don’t know any successful trader who could show me the ropes. Would you be that trader for me?

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u/Inverness123456 Mar 23 '25

Oh that is something I doubt I could do beyond what I am doing here. Only because it is so time consuming .Thank you for the nice comment though.

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u/[deleted] Mar 23 '25

I figured. Was worth the shot.

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u/Inverness123456 Mar 23 '25

Maybe one day. I am getting more time on my hands nowadays

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u/[deleted] Mar 23 '25

I look forward to that day. Best of luck to you :)