10 Trading Tips For Traders

Submitted by: Abdel Ibrahim

Here are our top 10 Trading Tips for Traders and Investors. It really doesn t matter whether you re a veteran trader or just getting started, we think these are all very important!

1. Between stimulus and response, lies our freedom to choose Steven Covey

This quote is very important. What it tells us as traders is that there should be a specific setup you re looking for (a pattern of sorts) and then a specific protocol that follows it. Too many traders just wing it when they are trading instead of having a specific setup and plan that they know works and they know what their risk/reward is. If you don t know what you re looking for and you don t know exactly what you re doing when you see it, you re likely headed down the wrong path.

2. Stick to your plan.

It s extremely easy to lose focus of what you re doing and start doing what someone else is doing. Stick to your trading plan and what you know works.

3. Ignore the noise.

Noise comes in a variety of ways. At times it s economics news, at times it s other traders. It s not uncommon for traders to seek what other traders think about their trades because they are unsure about their trade setups. Noise for many traders usually results in less profits and larger losses.

4. Be patient.

Anyone who is successful at anything has patience. Whether it s an athlete, your favorite musician or successful entrepreneurs, they all have patience. You don t become successful without having patience. Just as important it is to have a set plan and rules, patience is just as important.

5. Stay Disciplined and Focused.

This is one of the hardest things for traders to do. It falls inline with being patient. Discipline may be the most important factor in trading success. A lot of traders think it s the trading system but they are mistaken. Many trading systems work, but only when it s executed with discipline each and every time.

6. Pick one methodology.

Another problem many traders seem to have is that they trade too many methodologies and try to do too many things. A professional basketball player usually sticks to just playing basketball. They usually aren t nearly as good at playing another sport. As a trader you should focus on one approach to the market and stick to it. Master one way to do something and you d be amazed with the results.

7. Undertrade.

Under-trading is always better than over-trading. Start off slow and get the hang of what you re looking for. Most traders who are consistently profitable are not over-trading or over-leveraging their accounts.

8. Repetition is key.

If you want to be successful it s important that you develop the proper habits and repetition. Anything that you re good at is likely the results of practice and continuous repetition.

9. Execute

If you want to make money trading, then you have to know when to execute. Being gun shy is not going to work in this business. You have to what you re looking for and when you see it you gotta be ready to pull the trigger.

10. We have met the enemy, and it is us

A famous quote from the Walt Kelly cartoon strip, Pogo. As traders you must understand that we have complete control over our wins and losses. We choose when to enter, we choose when to exit. We decide on what price to buy or sell whichever market we are trading. You can t blame anyone but yourself, so remember, if you want to be a successful trader it s important to have a trading plan, stay focused, be patience, and have discipline.

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Source:

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