5 Steps to Better Trading

7. Dez. 2022

Start journaling
This is one of the most important things in trading. You can see the numbers clearly without fooling yourself and know what's working and what's not. It also helps to start noticing the most common trading mistakes you may be making, whether you enter/exit early, whether you are better at managing trades actively or passively, the quality of your SL/TP levels and the likelihood of reaching them, etc.

If you spend 20 minutes going over your log this weekend, it will give you more insight into how to minimize losses and maximize profits than anything else you can do.

Stop trying to predict the market
This is another big problem. Wizards effortlessly take other people's money: Casinos, they don't try to predict a player's next move, they just set up a statistical edge in their favor and watch it happen over time. This is the closest thing to the Holy Grail that will ever exist.

Not opening a position is in itself a position
FOMO causes traders to get into losing trades more often than anything else. Learn to be patient and just wait for quality trades, it has given me one of the biggest boosts to growth and greatly limits losses. Staying committed to a trading plan, limits the temptation to make impulsive trades. This habit will help to control the FOMO trades. be patient, be disciplined the market will always present opportunities.

Solid risk-management
Limiting maximum drawdown and MAE, limiting leverage (but also increasing it on high probability sets), backtesting, equity curve modeling, maintaining a good asymmetric RR, cross correlation/diversification, etc. Wait for confirmation before entering a trade. better to enter a trade late and be right, than early and be wrong.

Treating trading as a job
Take your work as seriously as any other important activity in your life. You should have regular trading start and end hours, and prepare very carefully for trading sessions. Also, write reports and collect statistics to document your work.