This is a thread where all traders can post – ‘5 most important things that I learnt trading markets’, so as to share knowledge and experience with each other. Even if a point is made in a post earlier, it does not matter, you can repeat it, as it is the top 5 things you have learnt trading.
One request to all – do not reply to the thread, which will clog it up with unnecessary responses – (only post your ‘5 most important things’) If you appreciate any post – just thanking will do. Also, do not post 6th things, else we might have of 10, 20 or more, which will make the post only academic and not – 5 most important things….
Do make your points short and easy to understand – not a para or a chapter.
Here’s my top 5 :
Trade only in the direction of the main trend – End of Day or Intraday. (*HHHL/LHLL)
Be a professional loss killer – and let your profits run. Never increase your stop loss – ever. You can always get back in the trade, if the charts justify.
While in entry - remember it is your money at risk, so it must be small. While in profit after entry - it is the money that the market has given you (risk free trade) so let it run.
Take only high RR (reward to risk) trades.
Entries are important – but exits more so. Be rigid with your rules, flexible with your targets. As no one can take more profit than the market is willing to give - trade with trailing SL, and never let a profitable trade turn into a loss.
Try to improve some aspect of self and trading each day – this can be done by analysis of each trade (entry and exit) and learning about trading psychology, discipline, money and risk management, position sizing etc. With 1% improvement each day, it takes only 100 days to be a 100% better trade.
* Higher High Higher Low / Lower High Lower Low
One request to all – do not reply to the thread, which will clog it up with unnecessary responses – (only post your ‘5 most important things’) If you appreciate any post – just thanking will do. Also, do not post 6th things, else we might have of 10, 20 or more, which will make the post only academic and not – 5 most important things….
Do make your points short and easy to understand – not a para or a chapter.
Here’s my top 5 :
Trade only in the direction of the main trend – End of Day or Intraday. (*HHHL/LHLL)
Be a professional loss killer – and let your profits run. Never increase your stop loss – ever. You can always get back in the trade, if the charts justify.
While in entry - remember it is your money at risk, so it must be small. While in profit after entry - it is the money that the market has given you (risk free trade) so let it run.
Take only high RR (reward to risk) trades.
Entries are important – but exits more so. Be rigid with your rules, flexible with your targets. As no one can take more profit than the market is willing to give - trade with trailing SL, and never let a profitable trade turn into a loss.
Try to improve some aspect of self and trading each day – this can be done by analysis of each trade (entry and exit) and learning about trading psychology, discipline, money and risk management, position sizing etc. With 1% improvement each day, it takes only 100 days to be a 100% better trade.
* Higher High Higher Low / Lower High Lower Low