Here you go, fifteen quality gems we have covered over the last several years. These are the homerun gifts that once mastered really pay dividends. Without further ado here we go.
1. Trading is Not an Easy Endeavor
- If trading were easy, no one would ever show up to work again. It requires hard work, discipline, and the ability to handle both success and failure. Understand that trading is a skill that takes time and effort to master.
2. Avoid Information Overload
- The best traders rely on a few key technical indicators, time frames, and strategies. Having too many screens, indicators, or over-analyzing fundamentals creates confusion and hesitancy when it’s time to make a trade. Simplify your approach and focus on what truly works for you.
3. Get Comfortable with Playing Probabilities
- In trading, nothing is guaranteed. Embrace the fact that you’re playing probabilities. Accept that outcomes are uncertain and focus on making decisions that improve your odds over time, not chasing certainty.
4. Add to Winning Trades
- If a trade is moving in your favor, consider adding to your position rather than closing it prematurely. This is an advanced strategy that many traders overlook but can dramatically increase profits when done correctly.
5. Be Patient—Wait for the Right Opportunities
- Avoid overtrading. Be selective and only trade when the market aligns with your strategy. Waiting for high-probability setups often yields better long-term results.
6. Set Goals to Improve Your Trading Skills
- Set clear, measurable goals for your development as a trader. Whether it’s mastering a new strategy, improving your risk management, or understanding new tools, consistent improvement is key to long-term success.
7. Keep Your Emotions in Check
- Fear and greed are powerful emotional drivers. Avoid letting them dictate your decisions. Stick to your plan, and don’t get swept up in the excitement or panic of the moment.
8. Trading Rules Cannot Be Made Up by Others—They Must Be Made Up by You
- In effect, you will be your own referee, throwing a flag when appropriate. Build your own set of rules based on your personality, risk tolerance, and strategy. It’s crucial that these rules come from within, so you can take full responsibility for your trading outcomes.
9. Trade Your Own Plan, and No One Else’s
- This allows me to take complete responsibility for my trading results. I cannot blame a trade gone awry on the Fed, headlines, activist investors, or other traders. I take comfort knowing I’m not following the herd mentality. There will be times when I’m right, and times I’m wrong—but it’s all on me, and I’m good with that decision.
10. Journal Your Trades—Successes and Mistakes
- You can learn from both your successes and mistakes by journaling each trade. This is a process under your control that can help cement your decision-making in your neurology, improving your future trading behavior. Reflecting on what worked and what didn’t is crucial for growth.
11. Trade with the Trend
- The trend is your friend. Trying to go against a strong market direction can be risky. Focus on trades that align with the current trend to maximize your chances of success.
12. Learn How Your Brain Works
- Brain-based trading offers a solution to solid consistent trading. Read up on it and implement it for profits in your future.
13. It’s Not You Against the Other Traders or the Markets—It’s You Against You
- The biggest challenge in trading is mastering your own psychology. The market is neutral; your success depends on controlling your emotions, sticking to your plan, and not letting personal biases and impulses dictate your decisions.
14. The Less I Trade, the More I Make
- Fewer, higher-quality trades often lead to better results than constant, impulsive trading. Take time to analyze and wait for the right opportunities.
15. Take Regular Breaks
- Trading can be mentally exhausting. Take breaks to avoid burnout and come back to your screens with a fresh perspective. Your decision-making will improve when you’re well-rested and focused.
Enuf said.