1. Treat trading seriously
Trading is a serious business, and it takes effort and dedication to reach a respectable level. It is a skill that must be learnt, and be prepared to put in the effort to educate yourself properly and build the experience you need.
2. No shortcuts!
If you want to find someone to make you RICH, then go ahead. You can find them on Facebook, Instagram and everywhere. Go for it. When you have spent and wasted your money, and realised that you just paid for someone else to make a living from you, then maybe you will realise there are no shortcuts.
3. It takes time
You will not become a profitable trader in 1-2 months. I have been trading for many years, and still learn something new every week. It takes time to build the skill needed, there are technical skills in reading and understanding charts, and – even more importantly – how to build the emotional and mental strength you need. Take my word for it.
4. Review your trades
I expect around 50% of my trades to be profitable. It is easy to make a good trade and think you are amazing. It takes discipline to review when things go wrong, analysing your mistakes, and learn how to improve. Keep a trading journal. I will write more about this in the near future.
5. Do not risk more than 3%
Personally, I prefer to stick to 2%. Make sure you know your risk limits, and stick to them.
6. Do NOT hop from system to system
There Is not a single trading system that you can just adopt and learn and make money from immediately. If your system is a good one, then do not just abandon it after a few losses and look for another system. The chances are – the problem is not the system, it is you!
Understand why you have losses, remove the factors causing this, manage your risk.
7. Have a trade checklist
Whatever system you use, make sure you have a clear checklist before entering each trade.
Does the set up meet all your entry criteria?
Is the trade according to the trading plan you have made today?
Is the trade in the direction of the trend?
Are there news announcements due shortly?
Is the risk/reward acceptable (it should be 3:1)
Do you feel stable and objective about this trade?
Do you accept that you can lose money on this trade?
8. Plan your trades before you take them
Develop a routine where you review all your charts, and identify where your possible trades may occur. Look for the trading opportunities that day. Set up price alerts, and then wait to see if the price action does what you require for you to consider a set up and entry.
9. Be responsible for everything you do
Own everything that you do, and everything that happens with your trades. Do not blame the charts, the news, the broker, the platform for YOUR mistakes. You are responsible for your trading, and only you can improve on your mistakes.
10. Stay in a positive space
Even more important than money, is your mental state. If you are making the same mistakes and seeing your capital falling, you need to change what you are doing, and how you are approaching your trading.
If you feel frustrated, talk to more experienced traders, and they can help you with advice and guidance.
For further details of my trading courses, please see HERE
To join my Discord trading group, please contact me on this site or DM me on twitter @Safdarlam