Advice from the Professional Traders at T3 Live
Being a profitable trader is all about developing a healthy state of mind. Most traders never end up making consistent money because they cannot achieve self awareness. In sports, it's called “the zone,” knowing when you should be aggressive or when you should take a step back. Most traders blow up their accounts once (if not multiple times) before becoming consistently profitable.
To get into the professional “zone,” we abide by trading rules. These rules are not meant to make you conservative or hesitant by any means. The best traders are confident types of people who discipline themselves by following steadfast rules. Having rules should help increase your confidence when you get into a trade. If you have a plan, you will never sit idly by as your capital dries up or withers away. The only way to become consistent and achieve longevity is to abide strictly by a set of rules that will help shape your trading to meet your personal goals and objectives.
These rules are guidelines and should be used to help you with your own trading business:
1. Trading is simple, but it's not easy. If you want to be a trader, leave blind hope at the door. Focus on specific set ups and stick to your stops. Trading is a business and you will have to work hard for every dollar you make.
2. Trading should be boring. Thrill seekers and impulse traders ultimately will fail. While they may see some big days, failure is a matter of when, not if.
3. Be extremely in touch with your emotions. Always be brutally honest with yourself. Note when you are acting based on primitive emotions rather than rational thought. If you find yourself yelling at your computer screen, ask yourself, "is this rational?"
4. Be cautious when you feel yourself getting too excited. Excitement is an emotion, and can greatly increase your risk because it can cloud your judgement.
5. Be patient and wait for trades to come to you. Chasing prices only increases risk and diminishes possible reward. Don't beat yourself up over a missed opportunity if you cannot get a price you like. Remember, the markets will be open tomorrow and there are always going to be more opportunities.
6. Manage your expectations. If you come into trading with the idea of making big money, you are already doomed. A greedy mentality is responsible for almost every trader blow up.
7. Don't focus only on the money. Focus on executing trades well. If you are getting in and out of trades according to your game plan, the money will take care of itself.
8. Never let a day trade turn into an overnight trade. An overnight trade should be planned as an overnight trade before the trade is even entered. Know the difference between your time frames in which you are operating.
9. Professionals, those who stay in the business the longest, always take small losses. Not admitting you are wrong and taking a massive loss can damage your psyche and confidence as much as your account balance. Trust in your stops.
10. Poor traders always think, “how much money can I make on this trade?” The best traders always think, “how much money can I lose on this trade?” Traders who control and manage their risk take money from the traders who are thinking about the Ferrari they are going to buy when in the trade.
Source: www.eshow.moneyshow.com
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