The success’s definition is very different from person to person.
What does success looks like?
This question cannot have one easy answer.
After not losing money over a long period of time. Next most important thing is tracking your performance.
I’ve heard from many people who track their returns on daily basis.
Is this required?
Why do Traders do this and do you really need to do this?
It is really easy to lose money if you do not know what you are doing.
- Do not take Broker Account opening for granted. Costs do matter in long term. Most of do not do enough study or research before opening the account. Quick Tip most of us are not aware that SPAN Margin alone trading account is available. This could be a broker option to review. You would be interested in reading 3 Ways to save your Brokerage.
- Find a Mentor: Most of us do not consider this as important. But a mentor can point out a mistake which most of us can’t understand. You might also be a victim of secret trading.
- Read, Read & Read endlessly: I had read one book and started trading. The first mistake I thought there is no other book reading which is required. Secondly, study the greats. Reading List.
- Limiting to Trading Futures: Why not use options trading to hedge your future trading. Most people do not consider options trading to hedge rather they use options trading for independent trading strategies.
- I have always been against paid subscription but there are many advantages in paid subscriptions. With paid subscription, you get advance content which is otherwise not possible. Most of the subscription website charge because they use the statistical database. They interpret and give you simple conclusion which is otherwise not possible. Consider Paid Subscriptions.
- Be ready to survive continuous 10 trading losses. If you are prepared for this you can never get out of business. Understand Affordable Trading Losses.
- Long Term Return: Why do we watch our return on daily basis. A month or even years go up and down. Being there ready all the time is important.
- Learn from Loss: If you learn from every trade you are not going to take revenge from trading loss. The worst thing is taking revenge to earn more with every loss will eventually hurt your trading profile.
- Pareto Rule 80/20 – Most of the time this works only 20% of your trade give you 80% of the return. Be Prepared.
- Stop loss: Understanding Stoploss – Don’t turn to Trading System without it.
- Surviving a Trading Loss is even more important. Surviving a trading loss in the right way will keep you going.
- Understanding Propensity Effect and implementing it. Most first-time traders are the victim of propensity effect.
Stop-loss order does not cost you anything they are absolutely free. Make sure that you have done your homework to calculate the standard deviation before placing the stop loss so that unexpected market correction does not trigger your trading plan.
But in the meantime, here’s a tip you can use right away. You’ll never change your own stop-loss in the opposite direction of the Target.
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