Here are the ten tools every trader must have if they want to make money in the markets. Missing just one of these tools could undermine your ability to be successful even if you have all other nine things in place.
-
The ability to bring your risk of ruin down to almost zero.
-
The ability to accept uncertainty about outcomes.
-
A historical understanding of the price action history of what you are trading.
-
The ability to back test and see how your trading model performed in the past.
-
Write a trading plan that defines entries, exits, and position sizing and quantifies trading rules.
-
The discipline to follow your trading plan when trading during market hours.
-
The ability to lose money and persevere without giving up.
-
Surrendering your ego’s desire to predict the future and learn to react to what is happening.
-
Stopping your losses at your planned exit level.
-
Doing the work that is required to be a successful trader.