We've all done it.
At some point in your trading journeys bad habits set in.
Here is my four trading habits you've got to kick in order to stay profitable.
1. Overtrading
We all been there with this one.
We think we have to be in the market all the time.
We don't and its okay to be flat at times.
No strategy should have excessive trade volume.
More time in the markets the more chance of catching a cold.
Overtrading can happen when we also start revenge trading.
You've caught some losses and your trying to get it all back.
Don't overtrading combined with revenge trading is a no no. Take a break.
Trading with no strategy or system
Should never be in the markets with out a plan or system.
More importantly no trader should be entering markets with out a proven edge.
Back test and forward test your strategy and make sure you are entering markets with a proven plan.
Psychology wise it makes trading so much easier to deal with.
No plan will lead to nothing but stress and losses.
No stop loss
Trading with no stop loss is biggest sin of all.
It's just not worth risking huge amounts of your trading capital on the line.
One big crazy move in this uncertain world could do damage.
Plus how can you develop a proven plan if stop loss is not included.
Also moving your stop loss should not be part of your trading.
As you've just altered any strategy being trading into the unknown category.
No risk management
So I've mentioned stop loss but that is only one element of risk management and it doesn't stop there.
Risk management includes many aspects you'll need to consider.
That includes position sizing relative to your capital size.
The psychology behind losing runs and how they are factored into your trading plan.
Work to set and proven trading rules as part of your risk management.
Be sure not to add to losing positions.
Know when you are wrong and move on to the next.
Failure to follow risk management means you will essentially be gambling.
Be realistic in expected returns is a big factor in risk management.
Sticking to all of the above and not allowing these habits to enter your trading will ensure you keep that trading account growing.
Thanks for taking the time to read my idea.
Darren π
At some point in your trading journeys bad habits set in.
Here is my four trading habits you've got to kick in order to stay profitable.
1. Overtrading
We all been there with this one.
We think we have to be in the market all the time.
We don't and its okay to be flat at times.
No strategy should have excessive trade volume.
More time in the markets the more chance of catching a cold.
Overtrading can happen when we also start revenge trading.
You've caught some losses and your trying to get it all back.
Don't overtrading combined with revenge trading is a no no. Take a break.
Trading with no strategy or system
Should never be in the markets with out a plan or system.
More importantly no trader should be entering markets with out a proven edge.
Back test and forward test your strategy and make sure you are entering markets with a proven plan.
Psychology wise it makes trading so much easier to deal with.
No plan will lead to nothing but stress and losses.
No stop loss
Trading with no stop loss is biggest sin of all.
It's just not worth risking huge amounts of your trading capital on the line.
One big crazy move in this uncertain world could do damage.
Plus how can you develop a proven plan if stop loss is not included.
Also moving your stop loss should not be part of your trading.
As you've just altered any strategy being trading into the unknown category.
No risk management
So I've mentioned stop loss but that is only one element of risk management and it doesn't stop there.
Risk management includes many aspects you'll need to consider.
That includes position sizing relative to your capital size.
The psychology behind losing runs and how they are factored into your trading plan.
Work to set and proven trading rules as part of your risk management.
Be sure not to add to losing positions.
Know when you are wrong and move on to the next.
Failure to follow risk management means you will essentially be gambling.
Be realistic in expected returns is a big factor in risk management.
Sticking to all of the above and not allowing these habits to enter your trading will ensure you keep that trading account growing.
Thanks for taking the time to read my idea.
Darren π
