There are many trading principles that are common among successful traders. It is important to learn their habits so we can make money. These 10 things can improve your results immediately. If you have been trading for awhile, but have not been profitable, these tips can help you stop losing money.
Start trading the price action by using charts
Charts express the collective actions of all market participants. The chart never lies, learn to understand what it is saying.
The market determines the winners and losers
We can only surf the price waves not control them.
Start to take 100% responsibility for your losses
You enter the trade, you exit the trade, the wins and losses are yours alone. The blame game is a losing game.
Bounce back from your losing trades quickly
If your position size and risk management are correct, a single trade shouldn’t emotionally devastate you.
Start caring more about what the market is doing and less about your personal opinions
The only thing that matters is current price action, not your opinion of what might be price action later.
Change your position quickly when you are proven wrong in a trade
The best trades start out as winners. When you find yourself hoping and stressing early, it is probable that the trade will be a loser.
Cultivate a positive attitude about your long term, trading success
Profitable traders are able to work through their losing streaks, accepting small losses to get to the big wins.
Define your trading success by trading a robust method over the long term
Make money in the market by staying faithful to your tested trading plan over a long period of time.
Risk only 1% of your capital per trade
When you risk only 1% of your capital per trade, you decrease your risk of ruin to almost zero. This 1% refers to the amount of loss you will take not on your total position size of capital in a trade.
Start to cut your losers short and let your winners run
The primary thing that makes money for most rich traders is having small losses and big wins.