Commit to doing the work required to be a successful trader.
Create a trading system that captures trends in your time frame. A trader has to be on the right side of the trend in their time frame. The path of least resistance is where you will find the best odds of profitability.
Trade with a plan so your decisions are made before the markets open, and your emotions put you at risk.
Trade a position size that enables you to stay disciplined with entries, exits, and stop losses. Trading too big will lead to errors in judgement.
Your entries should put the probabilities of profits on your side. Backtesting, pattern recognition, and chart studies will give you an edge over those that trade based on opinions.
A trade must have a favorable risk/reward ratio. Your stop loss should be close, while your profit target is farther away.
A trader can only be profitable with either a high winning percentage or big wins and small losses. Combining the two is the path to profitable trading.
A trader has to limit their maximum account drawdown to a level that eliminates their risk of mental ruin. A successful trader stays away from their financial and mental breaking point, and never quits.
Your system should ensure that you will have the right position when huge moves take place.
A trader’s methodology, plan, and system must match the trader’s personality, risk tolerance, and belief system.
