Below are some “tried and true” Tips we use for consistent trading success.
- Clear your head before you start trading . Keep yourself well hydrated with clean fresh water. If you are really having a bad day, don’t trade.
- Take a step away until you are able to come back with a clear mind.
- Take a moment and think about your trades before you execute. You will need lot of patience to wait for the right setups. A good trade is worth waiting for.
- Focus on the quality of trades, not quantity of trades. Trade less, but win more!
- Use a trade journal. It serves as a tool to reveal past mistakes and enables you to identify weaknesses or strengths in your day-to-day trading. Without an accurate trade journal, common mistakes are often repeated.
- Develop a trading plan that works with your trading style and stick to it. Understand it is YOU making the mistakes not the market and not your indicators! Practice and strive for FLAWLESS EXECUTION.
- Trust your setups. Don’t abandon the weeks and months of work invested in building your trading plan. If you start doubting your signals or trades, go back to a simulated account until you build the confidence you need to trade your plan successfully. Once you begin to “cherry pick” your trades, you are done for.
- Develop multiple trading strategies for varying market conditions. For example, have a strategy for trading trending markets, and have a different strategy for choppy market conditions.
- Be flexible and practice trading multiple markets. This will broaden your trading skills and present you with more trading opportunities.
- Read the news of the day before you start trading, and know when major news events are being announced so you are not caught in a trade during an announcement.
- Practice sound money management principles. Begin small and don’t increase your lot size until you have earned the right to do so. You earn the right to increase your lot size by showing consistent trading profits.
- Never add to a losing position (unless that is part of your strategy).
- Pactice your trading plan in a simulated account until you are consistently successful for a minimum of 3 weeks. Adjust it as necessary until you prove that you can show weekly profits for 3 straight weeks minimum.
- Remember that trading is your business profession. Give yourself time to learn the skills needed to get the job done.
- Find a good trading “buddy” to help you focus on success, and help keep you accountable to following your trading plan.
We demonstrate this and many other methods in our live demonstration room held every Wednesday, and this is open to everyone. Click this link for more information or to join us in class.
Understanding Price and Volume: Now that’s trading!