Post by traderAllen on Nov 30, 2014 10:38:10 GMT -5
Tip number one don't lose money: your first goal as a trader should be to stay focused on not losing money, winning trades take care of themselves. Many traders talk about the free trade, although there are couple different ways to accomplish this I agree this is one of the best ways to go. There's a balance between moving your stop up to quickly and not giving your trade room to move. However, getting stopped out of breakeven creates no harm to your account. So if you are going to error, then error by moving your stop up quickly.
Tip number two, trading is a business: A poorly run business is doomed to fail and so is a poorly run trading account, you must follow proper money management just as you would any other business. Also, you cannot be distracted and run your business, so remove the distractions. If you have a job most likely your boss would not let you watch TV, talk on your cell phone, or do anything else that takes your eyes off your. This job is no different, turn off the TV the cell phone, close the door to your office or den.
Tip number three, you must have a plan : You must have a basic set of rules to guide your trading, following the set of rules allows you to quantify your trading. You cannot make your trading is successful unless you can look back over the last month or longer to see if you've made mistakes or where you need to improve. This allows you to change with market conditions. As you review your trade plan. You may see during high volatility certain trades work better than others, then during the next high volatility session you'll know what type of trades to focus on.
To number four, discipline, discipline, discipline: you must have the discipline not only to enter a trade when you get a valid setup, but to exit your trades as the market dictates to. Taking a loss in the trade is never an easy thing to do. But it's very easy to make up a small loss, when you lack the discipline in your trading and end up taking a large loss when the pain gets too great will be lots of damage to your account, and take a long time to repair.
Tip number five, study everything about the market you intend to trade : the more intimate you are with your trading vehicle the more consistent you will be in your trading. What is the average daily range? What is a typical trading session look like during the Asian market? The European market? The US market? And the overlap? Knowing how the market generally moves will allow you to spot when smart money comes in and starts buying or selling. This will allow you to jump in the market and let the smart money traders to push your trade to its profit target.
Tip number two, trading is a business: A poorly run business is doomed to fail and so is a poorly run trading account, you must follow proper money management just as you would any other business. Also, you cannot be distracted and run your business, so remove the distractions. If you have a job most likely your boss would not let you watch TV, talk on your cell phone, or do anything else that takes your eyes off your. This job is no different, turn off the TV the cell phone, close the door to your office or den.
Tip number three, you must have a plan : You must have a basic set of rules to guide your trading, following the set of rules allows you to quantify your trading. You cannot make your trading is successful unless you can look back over the last month or longer to see if you've made mistakes or where you need to improve. This allows you to change with market conditions. As you review your trade plan. You may see during high volatility certain trades work better than others, then during the next high volatility session you'll know what type of trades to focus on.
To number four, discipline, discipline, discipline: you must have the discipline not only to enter a trade when you get a valid setup, but to exit your trades as the market dictates to. Taking a loss in the trade is never an easy thing to do. But it's very easy to make up a small loss, when you lack the discipline in your trading and end up taking a large loss when the pain gets too great will be lots of damage to your account, and take a long time to repair.
Tip number five, study everything about the market you intend to trade : the more intimate you are with your trading vehicle the more consistent you will be in your trading. What is the average daily range? What is a typical trading session look like during the Asian market? The European market? The US market? And the overlap? Knowing how the market generally moves will allow you to spot when smart money comes in and starts buying or selling. This will allow you to jump in the market and let the smart money traders to push your trade to its profit target.