10 Things A New Trader Must Have If They Are Going To Survive

10 Things A New Trader Must Have If They Are Going To Survive


 10 Things A New Trader Must Have If They Are Going To Survive

 

 

 

 

 

 

 

 

 

 

 

  1. A decision on what specific markets to trade.

  2. A developed robust trading system to trade that fits the traders personality and risk tolerance.

  3. An understanding of the expected winning percentage of trades in the system and maximum expected draw down of your trading system.

  4. Defined entries that tell the trader the price level to enter that has the best probabilities of success.

  5. A defined price level that the trader will exit because it will show the trader they are wrong.

  6. A position size based on the stop loss exit level to limit the risk exposure in any one trade.

  7. An understanding of the total risk involved in having mulitple positions on at the same time due to correlation and volatility.

  8. A trader must be in touch with what different types of trading does to their emotions and ego whether it is the time frame or position sizing.

  9. A realistic expectation of returns is crucial to keep your resilience up as a trader and persevere and avoid trading too big in a search for riches or too much.

  10. An understanding of how your system performs in different market environments does a lot to help get through mentally trying times or losing streaks.