How to be a successful trader?
1. If you want to be a consistent trader, you must be consistent in your actions. This means, you cannot keep changing your trading decisions as per your emotions. Especially when you are on a losing streak, your emotions tend to change your decisions. So, apply no bias trading strategy.
2. You must have an edge in the markets because without one, even the best risk management or trading psychology won’t save your account. Moreover, it means that even after having the best risk reward ration, still you would not be a successful trader without an edge in the trading strategy.
3. The law of large numbers means your trading results will be random in the short run. Besides, in the long run, they’ll align towards its expectancy.
4. Always take care of your downside. Indeed, the best trading strategy is useless if you don’t contain your losses.
5. Again, you need money to make money in this business.
6. Consequently, The big money is made from compounding your returns, and the biggest money is made from managing other people’s money (OPM).
7. There’s no such thing as the best trading strategy because “best” is subjective.
8. No trading strategy works all the time because the markets are always changing.
9. Trading frequency matters. In fact, don’t expect to make money every day if you only take two trades per day.
10. Trading is a get-rich-slow scheme. Further, If you add funds to your account regularly and compound them over time, you’ll eventually get rich but it takes time.
Hope you have liked them and you will add them to your trading strategy.
If you have any doubts or questions, Please let me know. ConversionConversion EmoticonEmoticon