Being a trader is almost like a soldier. You need to be disciplined and listen to orders. Those orders in trading should be your trading plan. There is so many people looking for the right way to trade, but it’s all about finding rules to your trading strategy and stick to it.
- Follow your trading plan
This is the most important one. You are a trader, so trade your plan and plan your trade. If you have a strategy that works, why do you try to enter some trade just because you think is going to work out? Practice discipline in your life and it will affect your trading results in a positive way.
- Know when to stop trading
We are emotional and sometimes we don’t even realize it. It can be a huge problem if you start opening trades because of what you feel and not what is your trading plan. If you feel angry, depressed, sad or even happy, you should know that it’s not a time to open trades. Leave your computer and get back when you know you are objective and can make logical decisions.
- Learn regularly
Markets change all the time and as a trader, you need to be able to adapt. The strategy you used to trade 3 years ago might not work anymore. Read about markets, watch them and analyze regularly to see what is really happening.
- Don’t let your losses rise
The biggest mistake traders make is they take quick profits and they let the losses run. When a trade will turn out as a loss, it has to be defined before entering a trade. If you risk 1% of your capital per trade, don’t make it suddenly 10%. Take the loss, there will be other trading opportunities for sure.
- Look closely at the charts
It’s recommended to set stoploss and takeprofit before entering a trade because we easily lose objectivity when the trade is opened. You think it will go up even though it is showing a clear trading pattern for short. That’s why always look closely at the charts. There’s everything you need to see.
So, in order to be a profitable and consistent trader, you need to follow a trading plan. If you feel emotional, stop trading. Learn on regular basis to keep up with markets. Don’t let losses rise too much or it will destroy you. Look closely at the charts and stay objective.