One of the best things a trader can have is a filter that allows them to see what matters and what does not. Knowing where to focus our effort and time at to be a profitable trader is crucial. Some things will make us money and some things will cost us a lot of money and divert our attention from what does matter. Here are the 10 things I focus my time, energy, and attention to primarily:
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I focus on what the current price action in the markets may be telling me based on support, resistance, gaps, moving averages, and a few technical indicators.
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I study how price action played out on historical charts of the stock market in relation to my above indicators.
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I spend a lot of time back testing trading systems that I have a theory about to see how they would have worked.
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I develop entry signals off my studies so I have a good risk/reward ratio and a good probability of a profitable trade.
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I focus on what my stop loss level will be before I get into a trade so I know how big to trade without losing too much trading capital.
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I develop ways to exit my trades to lock in maximum profits and limit potential losses if wrong.
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I find and read the best trading books I can buy based on others recommendations and Amazon reviews. I want books written by real traders not just writers or people with theories.
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I hang out with some really good traders in a few facebook trading groups that have more experience than I do and I learn a lot from them.
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I focus on following my trading system with discipline and not letting my emotions or ego interfere with making the right decisions.
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I use the internet and social media to learn by finding the best information based on facts not opinions.
