Here is the plan to be in the other 10%
Most people enter trading without a plan and end up in the same place: losing. It’s not about luck, but about discipline and strategy. If you want to stop losing money and start generating consistent profits, you need a different approach.
1. Have a strategy, and follow it to the letter
The worst decision is to trade out of emotion or fear. Your plan must answer these questions before each trade:
What is my entry point? Do not buy just because the price is rising. Wait for your strategy to give you a clear signal.
Where is my 'Stop-Loss'? Protect your capital. Define the level where you will automatically sell if the trade goes wrong. This is non-negotiable!
What is my profit target? Do not be greedy. Have a clear target for taking partial or total profits.
2. Analyze your mistakes, not just your successes
Keeping a trading journal is the most powerful tool you can use. Write down each trade, why you did it, and what you could have done better. You will be surprised by the patterns you discover in your own behavior.
3. Do not trade out of boredom
The market will give you opportunities, but not always. If there is no clear signal, do not trade. Patience is your greatest asset. Sometimes, the best decision is to do nothing.
4. Manage your risk like a professional
Never risk more than 1-2% of your capital on a single trade. If you have $1,000, your maximum loss on a trade should be $10 to $20. This way, a losing streak won't take you out of the game.
It's not about winning on every trade, but ensuring that your gains exceed your losses in the long run. Follow this plan and you will be on the right track.
