I have been studying, trading and working for years with thousands of traders from all parts of the world, in live trading rooms, seminars, broking houses and trading floors.
I am confident these are the best trading tips ever because no matter who the trader is or what market they trade, or what country they live in, for the super successful, their answers are always the same!
#1. Money Management
As a trader you are frankly doomed from day #1 if you don’t commit to understanding money management and being able to manage your risk. It’s the #1 aspect of trading that is challenging to master but once you get into a rhythm of simply chipping away with low risk and high return probability, all you need then is persistence and you will learn a skill that 98% of traders never master. Don’t think about it, don’t acknowledge it, DO IT EVERYDAY you trade. You must commit to the risk on every trade and know what the outcome maybe if the trade moves against you. You must only be risking around 2% of your account size when you first start learning to trade and over time the market will present opportunities when the time is right to risk a little more. This will come with your experience and when your account can handle it. You must also preserve your capital at every opportunity. This does not mean getting out of a trade early or bringing you stop to break even after 5 ticks, this means being realistic and having a set of trading rules that stipulates that if your account is drawn down say 20%, you must immediately stop trading the account, re access and then continue once you have decided the time is right. Never as a general rule continue to trade a real live money account once drawn down below 20% of its starting value. At 2% risk that would mean you have taken at worst 10 losing trades in a row. I am sure you would agree that you would be hard pressed to do that if you tried, but you can easily risk 20% of your trading capital in one trade if you are trading with too much money or without a proper stop loss. Commit to learning money management and your trading account will thank you for it over time.
#2 Discipline & Patience
Yes I know you have heard it before. Well you are about to hear it again, you must be disciplined with your approach and systematic about how you execute. Each undisciplined action will likely cost you more than you think and likely be one of 3 things. You end up with risking too much, you stay in a trade too long when it moves against you because you are hoping it will improve, or you get out too early rather than let your profit run to the target. All very easy things to do and if you break down your trading into the mistakes you make, not the trading probability system, but the mistakes, these will most likely make up 80% of your losses. Trading success can be defined as being boring, uninteresting and time consuming when you need to wait for a trade set up. However if you approach your trading every day with the mindset that you ARE going to follow your rules, commit to them and stay 110% disciplined you will give yourself ever opportunity at trading success and enjoy a lifetime of profits from the markets.
Patience is one attribute many of us find difficult to master with the markets because we are talking about money. Nobody wants to be patient with money, we want it as quickly as possible, however in reality you need to be patient as the success is not likely to come to you as quickly as you might think. You can build an incredible lifestyle and career around trading the markets but it doesn’t happen in 3 months, it happens over time by applying the disciplined approach we spoke about above, persistence and lots of patience. Patience in the form of learning to wait for your target to be hit, patience in slowly building your investment size along with success, patience in focusing on one market or system before looking for others, and patience with your family who too will expect a quicker result than what you are likely to give them. All humans are different and there is no pre defined time line for when you will “make it”. Making it in my book is profit in your account every quarter and a steadily rising equity curve and net worth. Discipline, patience and persistence are all hallmarks of great super traders.
#3 Your trading business
When you approach your trading you must treat it like any other business. You must be accountable, professional in your approach and honest with yourself at all times. The markets can suck you into believing that because you can make money quickly you can short cut some forms of the game, but as we all know a successful business has a great foundation and is run extremely well in all areas. Not perfect in all areas but there is a genuine focus and commitment to running the business successfully. Trading is no different and the reason often that banks and institutions often make so much money in the markets is that they are SERIOUS about running their trading business, they don’t take second best, they don’t have unrealistic expectations and they are accountable at every turn. How well do you run your trading business? What are your realistic goals? How are you going to reach them? What are you persisting at right now with complete focus and intent? Who are you accountable too and what sort of reporting system do you have? What do you do when things don’t go your way? All of these questions have answers and I appreciate you may not know the answers to them right now, but you will in time when you implement great money management, discipline and patience and persist persist persist.
All Forex signal systems have wins and losses. How can you ensure a signal system system or LTG GoldRock is not a scam and won’t blow my wallet? LTG GoldRock has many winning months some as high as hundreds of points of profits all delivered in an online live trading room where you can learn and trade with us in real time. But we highly value the “art” of trading and try and instill a solid training system in our traders with great risk management.
Tags: Best trading tips ever, World's #1 trading tips
