Ten Crucial New Trader Lessons

Ten Crucial New Trader Lessons


Ten Crucial New Trader Lessons

 

 

 

 

 

 

 

 

 

 

 

 

 

  1. Never trade based on your own emotions. Trading based on your own greed or fear will put you on the wrong side of the market the majority of the time.

  2. To be a great trader you must stay humble. Big egos will cause a trader to not cut a loss and try to hold on to a losing trade to try to prove they were right.

  3. Never add to a losing trade, eventually a trend in the wrong direction will destroy you if you add multiple times to a losing trade making it huge.

  4. Always seek to trade what is happening in the present moment not off of future predictions.

  5. No one trade should be so big that it makes a traders emotions so loud they can’t hear their own trading plan.

  6. A trader must have faith in their system through back tests and chart studies and the faith in themselves to execute that system with patience and discipline.

  7. Generally the trades with the best probabilities of success are the most uncomfortable to enter.

  8. The most obvious price targets are usually the ones never hit.

  9. The future does not exist, so no one can predict it, their is simply possibilities and probabilities.

  10. The best traders embrace uncertainty and trade the price action not their opinions about it or what should happen next.