https://www.youtube.com/watch?v=wcBEI0leHdc&feature=youtu.be
1). Treat this like a business/work don’t be undisciplined with your trading, get too relaxed have a routine pre market open and don’t become complacent.
2). Stick to your rules and don’t trade with real money until you learn what systems suit your personality best, such as break outs or dip buying.
3). Have a good understanding of risk management and be strict do not risk too much.
4). If you are not in a good place mentally such as work stress, family or relationships don’t trade you must be able to have a focused mind when trading to pick up on the patterns you have been studying.
5). If you have a loss walk away and personally I don’t trade anymore that day. If have three losing trades in a row I stop for the week and recalibrate.
6). It is human nature that being a consistently profitable trader is very difficult, losing is always going to happen how you react to this is what separates the good traders from the 90% of retail traders who continually throw money away by not LEARNING from their mistakes.
7). Learning how to trade takes time it’s like being a pilot they ain’t going to let you captain a 747 straight away.
8). I know Tim says this a lot but study the past these patterns come up time and time again.
9). Learn to read price action, just watch the markets live and see how price interacts with support/resistance zones. If you have no idea what I’m talking about here please research this and don’t trade with real money until you understand the basics.
10). Don’t have any expectations of the markets owing you money and if you trade your plan and you still lose suck it up and move on. DON’T revenge trade this will only result in you exasperating the issue and make recovering the account extremely difficult.
11). These are just my thoughts but from being in the Tim Alerts chat room I thought I would take the time on Saturday night to put this together as these things have helped me in my trading journey in Forex, yes Forex 10 months of demo trading and trading a small live account recently has meant I am profitable but only slightly since these markets don’t move as aggressively as penny stocks especially when you trade with 2% positions on the 4 hour time frames.
I would form a thesis on each stock on my paper trading watch-list then narrow them down to a top four focus-list. The next day, I'd follow your 9th rule and just watch that price action. Doing that solidified the whole difficult concept of timing a trade after forming a thesis. We can have the right "thesis" but if our timing is off and you buy at the top of a spike for it only to fall a second later (or the opposite in a short-bias trade), your thesis at that point in time was off. I've had
I've had many "correct thesis, but bad timing" entries paper trading - a thing which I imagine beginners like myself may suffer frequently. This is why I treat trading as a business, an art and a science. Manage the risk like a business. Be scientific in the way you research and refine your rules. Be artistic & graceful in the way you execute and time your plan. There's no 100% in this game, but as long as you constantly refine, re-evaluate and overcome your failures you will learn to love even
your failures you will learn to love even the greatest loss you aim to avoid. We need losses, in a way. Without them we learn nothing. Sorry for the rant, but just want to give my take and emphasize the importance of #9 lol. Good luck to you on your trading journey.
@axhtrader thanks so much for your detailed feedback and providing your insights much appreciated 😀
Join now or log in to leave a comment