Trading Lessons I Learned the Hard Way

“You adapt, evolve, compete or die.” – Paul Tudor Jones

Learning to trade is an evolution of trader and system. You have to continually learn and grow as a trader. The markets are dynamic and we must continual learn to refine our system. Our losses must be our lessons, our wins must be our blueprints to future victories.

Here are the lessons that I learned through financial pain:

1. I have learned to be patient for entry signals with an edge, and not take trades based on my opinions.
2. Honor my initial stop losses to avoid big losses.
3. I trade with the trend; it is the easiest path to profits.
4. The longer the time frame, the easier the trade.
5. My trading is a business. I keep my emotions and ego separated from my trading results.
6. When I enter a trade know my stop loss level where I will exit after being proven wrong.
7. Avoid big losses and allow the room to have big wins in order to be consistently profitable.
8. I learned my trading outcome is closely correlated to the amount of effort I put into learning.
9. I learned I better know price history for an asset, before I trade it.
10. I learned that removing the mathematical risk of ruin from my trading by reducing position, sizing is crucial for my long term survival as a trader.