What You do to Become a More Consistent Trader?
So what can you do to become a more consistent trader and increase your profitability? 1. Think of trading as a business and have a trading plan. 2. Make sure that the strategies you select, match your personality so you can follow them. 3. Have a realistic expectation of what your returns are. Include all the costs associated with your trading business. 4. Have an idea for your risk/reward ratio. Don’t confuse trading with gambling. If you are increasing your position, make sure that your strategy warrants it. 5. Have trading rules and follow them. Think about them as contingency plans. Because when your emotions are very high, the tendency is that you make very poor decisions that can cost you your account! 6. Be flexible to the market conditions. When you see the market as it is, you have a much better chance of managing your portfolio and increasing your profits. 7. Take responsibility for your results. Taking responsibility does not mean that you have control of everything that happens. It means that you have a choice of how to react to the things that happen. 8. Find out why you are in the trading business. If it is [...]
READ MOREPlan Your Trades, Then Trade Your Plan
Your job as a trader is to follow a trading plan. And who’s going to write this trading plan? You are. Notice the world “write”. It needs to be written down, on your trading desk, in front of you. Your trading system will give you the rules to follow. All you do is translate these into your plan. A trading plan must have three parts: Setup, Entry and Exit. (Obviously it’s beyond the scope of this document to provide details on specific trading system as there are literally hundreds of them! However we do feature some occasionally in our newsletter) The point is that a trading plan conves every eventuality. You know what to look for in the market, when to get into a trade, and when to get out. Keep it simple. Then follow it. Religiously.
READ MORE
