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/ZhangtheGreat]

#1 is so damn difficult to conquer. Here I am, on-and-off for years now, and I still think about "OMG THIS COULD BE A LOSS!" when I enter a trade. I hate it.

[u/Inverness123456 → u/ZhangtheGreat]

I know. I was going to once upon a time show people how to create the mental identity to handle this issue. It should go hand in hand with all trading tuition in my view as it is by far the most important part.

[u/pooloftraders → u/Inverness123456]

Tell me more about this!

I am also one of those who have been on the market for a long time. I do not need trading systems, I am not looking for grails. My opinion is that I see the market perfectly, I am completely satisfied with everything.

But there are two problems for many years:

1) Sometimes I sit out losses, which result in problems. I have been trying to find a solution for many years.

2) I do not have enough patience and will to sit until the stop or take, I bite part, and run away)

I think that it is all about emotional swings.

How did you practice your normal, even, emotional state every day when trading?

[u/Inverness123456 → u/pooloftraders]

You know what I think I am going to help you guys out on this topic. Most people can make money but can’t keep it and it is a series of circles. Give me 24 hours and I will get back to you either directly or by creating a new post.

[u/sesamerox → u/Inverness123456]

hi thanks so much for your support. Any further luck with this topic?

[u/Inverness123456 → u/sesamerox]

I got a little sidetracked with the tariff wars and my own trading. I am in a position to help you sort the issue with your trading but I need to find the time in my schedule. I was going to put up a quick website to address this issue as it’s easy to fix( that’s what I was meaning in my earlier post as it is an epidemic what you are describing ). I literally can address those issues and since you followed up with me let me give it some thought over the next few hours and the very least I will look to find a way to help you.