Why Do you want to be a Trader:If you are focused on the great deal of money to be made in trading. In my opinion you got your priorities twisted. The most successful traders are in love with the trading process and not the outcome. Defining entry and exit and managing risk. They like the challenge of doing something most people find daunting at best. They thrive at been in very stressful situation and coming out a head. For me I make trading feel like I am playing a puzzle or a video game. Money is not money it’s just a soldier in this financial battle. All I want in everyday is to recruit as many soldiers as I possibly can. When you make trading fun and like a game. You free yourself to enjoy it and succeed in it.
What kind of Trader are you?-Figure out what type of a trader you want to be. (Position vs. scalper). This part is critical. You have to know yourself well to understand your own temperament for risk. If you are new and do not know. I suggest you Demo trade or better start a Mini-Forex account and practice with real money. In a Mini-Forex account the losses are limited and your emotional reactions to trades are more real than a demo account. In my case I feel scalping is a better option for me and I only swing trade if I am already in the profit to justify the overnight risk. If you are an established trader analyze your results and see if you make more profits from swing vs. scalping then trade more toward what works best.
Routine: – Routine creates predictability and consistency. It’s critical for a new or established trader to start his or her day in a focused and consistent manner. For example, on a daily basis I make sure to wake up between 6:30 Am to 7:30 Am to start prepping for the trading day.Also,I built a 12 question List I have to answer to qualify myself to trade for the day. Working out and meditation prove valuable in putting me in the right state of mind to conquer the trading day. Routines like this prove very valuable in building structure in my trading and can be valuable in yours as well. This Article will help you Start and stick to a Routine that will skyrocket your productivity.
OH these Dammed Indicators:-Dump All the Indicators and stick to price and volume trading and reading. Think about it for a second. Do you think Goldman Sachs or JPMorgan are trading based on RSI or MACD crossover or any New or Hip Indicator? Trust me they do not. Actually they are taking the opposite side of these trades. Nothing beats understanding the forces of Supply and demand. Build a Simple Rule Based system that will prompt you to get in and out based on price and people behavior. Your Risk should be measured not based on how many ticks you can afford to lose but on price break points. The technicality of it all cannot be summed up in this paragraph. However, The Main point to take is to have a very specific set of rules to govern every aspect of your trading. 7 Morning Rituals to Make your Day 8 Times More Productive.
Manage your Emotions:-This is the killer of many traders including myself. In my Trading career I have blown up many accounts trading equity, Options and futures. I sat down and analyzed the common denominator between all of these failed attempts at trading riches. The single reason was my lack of ability to manage my emotions in a constructive manner. So if you are reading this the odds are you have experienced similar results and looking for a way out of the cycle. I figured thru trial and error that my effective trading times are the first half of the day between 8:00 AM to 11:00 Am. I built a rule based system to reduce the emotional impact of trades during my peak times. Finally, I do meditate before the beginning of the day and use breathing and mental focus exercises to manage my mental states while in the trades.
Finally, Trading is a journey of self-discovery. Focus on the positive of every experience and every trade you make. Mentally decide no matter what you are a winner even thou your trading account does not reflect it yet. Seek knowledge from people who are experts in the trading discipline you seek. And the most important thing is never ever ever give up. Stay in the game long enough and you will figure out a way to win.