These are the words I live by as a trader; Trading Is Simple. You’re Most Likely Overcomplicating It. Trade Your Plan.
These are the words that ring at the back of my head everytime I trade or whenever I think about trading. That’s actually what I believe about trading and what I’m cultivating as a trader; that trading is (OR will be) simple as long as I follow my plan and not complicate my trading.
Do you have any words that may define you as a trader, or are at the core of your trading principles?
What is your personal motto in trading and why did you choose it?
And how do you apply this motto in your trading, be it with your decision-making process or however way you apply it.
Being in the right detached mindset, without distractions, and strictly following my strategic process that I use for every trade. Only deviance when more than two correlated trades occur simultaneously could be a leverage deduction.
Many things are considered at the time of trading and time frame is one of them. There are several time frames of trading. Its way more important for beginners because beginners can’t trade for a long term and so they should trade based on short time frame.
The way I go about maximizing my profits is to focus oh high Risk to Reward and not the monetary value. Reason being that there are various factors that play a role in profit maximization like your position zise, number of trades you take, how far will the market go in your direction, etc.
This way I found it much easier to focus on maximizing my returns without being distracted by other factors like how much am I making or losing, but rather what is my risk to reward ratio.
Just out of curiosity, what methods do you use to control your losses when trading? Do you take breaks from trading when experiencing a losing streak, or step away from your trading screen? Do you cut your losses early, or do you have other specific strategies you rely on?
There are three rules that I live by: never get less than twelve hours sleep; never play cards with a guy who has the same first name as a city; and never get involved with a woman with a tattoo of a dagger on her body.
I actually used to do this. Three losing trades in a row and I take a break. I had a long losing streak recently and just kept on going. Sometimes I think it’s good that I did that but sometimes I think it was terrible. My answer depends on what time of day you ask me lol.
These days I try to just follow my plan. Cutting my losses early shouldn’t even occur if I have my SLs in place.