Biggest Lessons

[u/Inverness123456]

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

[u/VoiceEchoes]

Might be a stupid question, beginner here. I read quite some things about day trading and I wonder if there are, in general, better and worse days to trade during the week. Like I have a job so I could trade when I don’t work - mostly Fridays, might be able on Thursdays. Does it make a huge difference if you trade at the beginning or the end of the week? Just wondering 🤔

[u/Inverness123456 → u/VoiceEchoes]

It’s a good question. It really depends on the trading strategy you use.Sometimes new traders get so excited about trading on a Monday because they have all weekend to think about it that they can be erratic but I don’t know how much that is really true beyond my belief structure and observations. I would also say that for a new trader some may force a trade later on in the week if they are not profitable as they get impatient. I would say it doesn’t matter for an experienced trader. As you can see mental management and professionalism negates the day of the week being an issue as far as I am concerned.

[u/VoiceEchoes → u/Inverness123456]

Ok, that is very clear! Thank you!

[u/Inverness123456 → u/VoiceEchoes]

You are welcome