20 Reasons Why Our Trading is Profitable

20 Reasons Why Our Trading is Profitable

Here are 20 points I do recommend to the new traders for trading profitable over the long term.

First Five Reasons Why Our Trading is Profitable

  1. Every Time, We trade only a few ETFs and stocks and concentrate our efforts on identifying any trend that emerges from one of them.
  2. We keep a limited watch list and eliminate anything that is too volatile or range bound for my trading strategy.
  3. We am quick to cut losses short because I hate losing money.
  4. With winning trades, We are very calm and will let them run as long as possible until I have a strong reason to exit. We’ve put stop-loss in places where if prices fall, it indicates that we might be wrong about our entry. We use stop-loss to trail winning trades and bank paper to profits on the reversals.
  5. We trade actual price action rather than our own opinions, and we are reactive in compare to predictive trader.

Other 5 Reasons Why Our Trading is Profitable

  1. Our technical indicators are moving averages and price levels.
  2. When prices start swinging wildly, We go to cash. It take a risk-off stance until market volatility is down and a break out of resistance or support occurs.
  3. On any single trade, we did not try to risk more than 1% of our total trading capital from our entry point.
  4. In our trend trading accounts, We have reduced our maximum drawdowns every year.
  5. We trade multiple accounts and systems to diversify our methods and benefit from the one that best suits the market conditions.

Another 5 Reasons Why Our Trading is Profitable

  1. Our best trades are at the start and end of the day; We tend to lose money if We try to trade all day.
  2. We only trade the daily chart.
  3. Depending on the strength of the trend, our time frame can range from one day to a month.
  4. We use our own trading strategies and we are not influenced by other traders.
  5. We try to keep our entries and exits, as well as stop-losses and trailing stops, away from areas where there is only noise. we look for a breakout or a bounce that tells us it’s time to act.

Last 5 Reasons

  • We try not to push ourself into stressful conditions with large position sizes. We trade position sizes that are mentally comfortable.
  • One trade means very little to us. We are more concerned about the next 100 trades and the long-term outcome.
  • We keep ourself learning and growing as a trader by writing my blog, writing books, and participating in social media.
  • We’ve read and studied over 100 trading/investing books, hundreds of charts, and gained a lot of knowledge from conversations with successful professional traders.
  • More than anything else, We believe the secret to our profits has been the risk/reward ratio, risk management, and trading with the flow of trends.

Also, read

10 Ways To Grow Money


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