GOOD EVENING STEEMIT,
A career as a trader, either in the prop trading space or out on your own, is one of the hardest paths you can take. It is however, one of the most personally fulfilling and financially rewarding paths, leading you to places that you never imagined even existing.
You will learn more trading for yourself than in any job you have, or will have and whether you make it in the end or not, you'll look back on your time as a trader as some of the most rewarding years of your life.
Here I discuss the top 3 lessons that I truly believe you must learn to become a successful trader. They may seem slightly controversial and even downright ridiculous to you on the surface, but all I can do is encourage you to take them on board throughout your journey and you will see in the end.
1. You only learn when you lose money
You have to feel pain in order to progress. When you feel it, you wont want to feel it again so you either quit... or learn.
This is something that I always tell new traders who ask for advice and I always get the same response. I'm told that if I want them to lose money, then I obviously don't want to help. Of course this couldn't be farther from the truth.
The only way for you to learn is to experience the pain of losing money. This is why governments tax things they want you to use less of and why demo trading doesn't work. You just don't care until it hits you where it matters and the only place that matters is your bank balance. Harsh, but true.
The reality of trading means that you're going to make mistakes and lose money as a result. Heck, this can still be said for professional traders who have decades of experience. Of course new traders are going to experience losses. Take them and embrace them.
This leads into lesson number 2 nicely.
2. Take more losses than winners
Lots of little losses and the odd big winner, is a much better strategy than taking lots of small winners and the odd big loss.
Once again, when I tell traders asking me for advice to take more losses than winners, they think I'm equally as mental. You see, every single piece of trading advice written for new traders will tell you to keep your winning percentage high. On paper, this sounds like a good idea, but trading isn't done on paper. It's done on your live account which is linked to your bank balance.
You're going to take losses and you should be taking a lot of them. Taking small losses over and over again at the first sign you're wrong, will put you in a better long term position than letting the trade develop, or whatever other slogan you might read. Your strategy has already let the trade develop, you're wrong, so get the fuck out of the trade.
The other side of the coin of course, is not just taking winners, but taking BIG winners. Always look to add into your winners and make sure that when you are right, you capitalise. The fact that you can turn winners into BIG winners is your edge. It's what turns you into the house rather than the punter.
3. You can't trade anyone else's strategy
Innovate or die trying. You can never copy someone else's trading entry for entry so do things your way.
Human beings are inherently lazy creatures. They want to take the easy path in life and when it comes to trading, it's no different. New traders want to find a successful trader and copy them. Not learn from them, but copy them trade for trade.
The reality is, this just doesn't work. You will never be able to trade a strategy exactly the same way as someone else because no successful strategy can be completely automated. You can have certain rules, but you still have to have that human element in your trading to cut losers or skip certain entries.
Embrace elements of a successful traders' strategy sure, but adapt and make it your own. It's the only way that you're going to become a consistently profitable trader.
Instead of hiding from your failures, you have to embrace them. When you take a loss, you have to own it like every winner you close. Successful trading isn't about being right more often than not, it's about making money. Nothing more, nothing less.
Don't let failure or stress overcome you or your self-confidence. Instead, use it as the driver to get where you need to be.
Best of probabilities to you.
Peace ✌🏻.
Instagram: @forexbrokr
Website: www.forexbrokr.com
I have always believed that failure is not a mistake but a learning experience. Making a mistake is only negative when you don’t take the time to analyze what happened and learn from it. I completely agree with deveoping your own strategy. When I first started trading I tried following others with limited success. After researching, learning technical analysis and observing the market I started to try things and developed my own ideas and strategy. Always remember that the market is a living, breathing entity that is prone to follow history and trends, but can also do crazy things! I also learned that it is ok to not wait for the bottom of the dip to get in or to buy as something is coming out of the dip. You’ll drive yourself crazy trying to time the perfect trade. And conversely take profits that you are happy with, don’t try to time the top. I usually look to make 20-30% on my short term trades. That makes me happy and I don’t feel like I missed out if goes higher because I made my money back plus 20-30% which is a ton better than other investments! Thanks for the post @forexbrokr!
well said !
Thank you!
Thanks for taking the time to comment like this mate. It’s appreciated!
I love the way you say you don’t have to catch a bottom or a top to make money. This is the key. Just take bits here and there, low risk and high reward. You don’t have to catch a falling knife!
I used to get pissed because I would be at work and miss a top or a bottom. Now I just set take-profit limit buys if things look good to get what I want for profit or stop-loss limit buys to mitigate my loss to 10% if things look bad. That way when I get home from work I am happy no matter what!
Lots of good advice here. #2 is the one I personally struggle with the most. Sometimes I will bank a profit just to lock it in and then I watch it go on to greater highs. Other times I let a loss run because I think the market is wrong and will come back.
I've been getting away with it, but I am aware that it is a lack of discipline and I'm letting my ego dictate the exits too much.
If you know what you’re doing wrong and you’re losing money doing it, then it should be easy to make the change.
Feeling pain sucks... Why hurt yourself? 😎
It's the rational mind vs the ego. It's a lot easier to identify the issue than it is to correct it. One of my yet-to-be-written pieces is about staking ego and how - for the sake of ego - it is often more important to be right than it is to make money. The financial stake can actually be kind of irrelevant.
Anyway, I won't rant. Just suffice to say that being aware of ones weakness is half way to addressing it, and I am trying to address it :)
Whatever you say @forexbrokr you're right. Honestly, I am new in cryptocurrency and trade world. Since I am just a new guy here, expect I keep lossing small amount of money. I don't really know what to do but instead of giving up, I try to find what makes it wrong and learn fron that.
Yep, learning from your mistakes is key. If you’ve lost money, then you don’t want to keep doing it so you will be more inspired to change.
Good luck! 🙂
Great lessons. In addition, what has worked for me is to have at least one additional insight into the asset other than its price movement. This can be technical or it can be an immaterial value that you share with the team behind the asset. If the price is all you have you won't be able to hold it through the valley. In order to realize that big win mentioned in the article you need holding power both in valleys and hills on the way.
Price is king. It is ALL you need 😎. Indicators are just math problems derived from price. They show you what price has already showed.
I trade with price and how it reacts around support/resistance levels. It helps me to know when to hold, cut losses or add into winners.
Welcome to Steemit mate, I’ve given you a follow and hopefully I’ll see you around.
Never let greed take over you. Some people become too greedy that they lose everything they earn. Be smart & have a purpose or a goal while trading!
Greed is a whole other topic that I’ll get to soon!
Failures are stumbling stones to success,take them on their face and rock:)
That’s great advice. Thank you.
Nice words buddy!
Hope that we are all doing well this year!
I got a good result in 2018 so far with my live trade calls!
Good luck to you and all others out there too !
Nice words!
I have been learning for years and I found the same mistake!
Now I am much better and making good money for living!
Here is my plan for EURUSD :
https://steemit.com/forex/@angelinafx/eurusd-long-scalp-order-at-2310-and-2291
https://steemit.com/forex/@angelinafx/eurusd-taking-profit-hit-at-2350-for-second-half-107-pips-pending-orders-has-changed
Good luck all of you out there !
Congratulations, you were selected for a random upvote! Follow @resteemy and upvote this post to increase your chance of being upvoted again!
Read more about @resteemy here.
Do you see the irony in being randomly selected for an upvote on a systematic trading blog?
Either way, thank you!
You get a upvote and resteem from getupvote.
Follow me @getupvote and get a upvote and resteem thank u
Thank you 🤙🏻.
The only way for you to learn is to experience the pain of losing money. This is why governments tax things they want you to use less of and why demo trading doesn't work. You just don't care until it hits you where it matters and the only place that matters is your bank balance. Harsh, but true
That's so awesome and true:)
Glad some of my writing resonates with you. Have a good one! 🙂
Thanks for the love:)
@forexbrokr What is your average annual return on investment? (Forex of course)
This is one of the post I have read carefully because it is of great interest to me. After I am done with my college I decided that I want to do trading but I have not be able to start any business because (1) I don't really know what business I will be able to do better. (2) fear of starting a business and then having great loss.(3) I don't have any business expirence. Thanks for this post, I think I have to take one step at a time and also be aware of the possibility of losses in any business and the rewards of being innovative and learning from successful business men instead of copying people strategy. Thank you once again.
I’m happy to hear that my writing resonated with you. Best of luck taking the next step in your career and starting your own business. See you around!
This is very big lasson for us and you Are write we learn when we lose the money
Good luck in your trading!
learn from mistakes
That’s key!
Hello
Hi?
Why?
Flagged for being a spammer.