Ten Simple Things New Traders Need To Be Doing

Ten Simple Things New Traders Need To Be Doing


Ten Simple Things New Traders Need To Be Doing

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  1. What school of trading will you be studying? CAN SLIM, Trend Following, Gann, Fibonacci, Darvas, Day Trading, Swing Trading, etc. or a hybrid? Knowing who you are as a trader is the first step.

  2. Quantify your trading methodology before you ever trade, how ill you make money? What will be your edge?

  3. Write a trading plan, what will you trade, what are your position sizing parameters, and what will be your entries, exits, and rules?

  4. Pick exactly what markets you will trade and study them completely for historical price movements and volatility.

  5. Before you enter a trade know what your stop loss level is where you will get out because that level will show you that you are wrong. If you are asking others opinions about what you should do stop and trading and start writing your own trading plan.

  6. Risk $1 to make $3, a 1:3 risk reward ratio is a basic key to trading success, if your stop will give you a $100 loss then your target should give you a $300 profit.

  7. Decide what market environments you will trade in, volatile, trending, swing, all, or when will you just go to cash.

  8. Give up your opinions and trade the price action. Follow the chart.

  9. Quit trying to make great ‘calls’ and spend your time trying to create a positive expectancy trading system.

  10. Focus first and foremost on never losing more than 1% of your trading capital on any one losing trade, if you do that it will be much easier to be profitable.