Very simply, DO NOT DO what losing traders, or traders who have blown their accounts, have done and are doing; 95% of failed traders repeatedly engage in the following losing behaviors.
- Failure occurs when trading against the market trend -> Only trade in markets with clear trends.
- Failure is due to not managing capital -> Manage your capital from the moment you deposit money; even if you lose it all, remain calm and trade with a cut-loss of 1-5% per trade.
- Failure comes from trading too many methods leading to confusion, burnout, and exhausted trading resulting in foolish actions -> Only trade one method that suits you and delve deep into it.
- Failure is due to not maintaining a trading journal -> Write a journal to understand the reasons for entering trades, check if the trade met all your system's conditions, analyze the reasons for entry, the psychological state while trading, identify mistakes to rectify, and capitalize on successful trades.
- Failure is due to not positioning oneself in trading; wanting to earn 10 million, 20 million, or 50 million per month with only 5 million or 10 million capital is unrealistic. If you want to earn 5 million per month, depositing 500 million is much easier, right?
-> Reassess your personal financial position; if you come from a poor background, don't blindly follow the volume of other traders.
- Failure is having expectations that are too high compared to what the market offers -> Lower expectations, take the necessary amount of money. (Greed is the root cause of all failures)
- Failure is caused by excessive fear when trading; when a trade is losing, you fear losing more; when a trade is profitable, you fear a reversal; when you reach your entry point, you hesitate to enter -> The only way to eliminate fear is through smart capital management.
- Trade what you see, not what you think -> Trade what you actually see, don’t assume prices will rise or fall; thinking too much can lead to disastrous outcomes.
- A failed trader overtrades, wasting fees and energy; when the trade goes according to the analysis, the energy is depleted, making it impossible to hold onto profits -> Trade less, time the price areas for buying and selling; if there are always positions open, it's gambling.
#tradingtips
