There is no universal roadmap to trading success. The result depends on your own skills and mindset, as well as trends themselves. Learn from industry experts and incorporate these key insights into your strategy.
Discipline Is Key
This is the cornerstone of any trading course. Craft a detailed strategy and follow it religiously. All too often, traders abandon their plans on the spur of the moment affected by the general market sentiment.
Always have an exit strategy before opening a position. Set Stop Loss/Take Profit for every trade. Avoid second-guessing: when the market is moving in the desired direction, it is tempting to delay closing, expecting higher returns. This is a reckless view, a reversal can be sudden. Thus, hedge risks beforehand.
Avoid Going to Extremes
Consistent success does not mean failures can be avoided. Sooner or later, you will make a mistake. Even superstars have their ups and downs as markets are not entirely predictable. Sometimes, these are the conditions, not your skills, that account for a failed trade.
Take failures in stride: they are inevitable and present a learning opportunity. Do not immediately reduce the trading size to the minimum: maintain a balanced view. When the day is exceptionally good, avoid boosting the volume without adjusting risk tolerance accordingly. Otherwise, your optimism may result in substantial loss.
Remember that emotions are your enemy: they are the antithesis of rationality. Thus, trade mindfully and make sure every step is thought-through. Humans are irrational beings, which is why you need to have a detailed plan and stick to it.
Keep a Trading Journal
Today, we are used to electronic records. However, writing down your results is extremely valuable. While automatic records are a useful reference source, they do not describe the background of a trade. Aside from formal criteria (volume, leverage use, financial result, etc), note down your motivation for each position and any feelings evoked by the outcome.
You may view this method as laborious and old-fashioned, but its potential is undeniable. Nothing beats a manual look at your performance. This way, you can clearly see what works and what doesn’t.
Finally, accept your own shortcomings. A negative result is not the end of the world. It is a learning opportunity. Note down your losses and identify their causes. Is there anything you could change in your approach in order to do better?
Control Your Impulses
Whatever happens, do not despair. It is impossible to gain profit from 100% of trades. Analyze your actions and keep an open mind. Stay calm and improve your strategy gradually, one element at a time.