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
- Every Time, We trade only a few ETFs and stocks and concentrate our efforts on identifying any trend that emerges from one of them.
- We keep a limited watch list and eliminate anything that is too volatile or range bound for my trading strategy.
- We am quick to cut losses short because I hate losing money.
- 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.
- 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
- Our technical indicators are moving averages and price levels.
- 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.
- On any single trade, we did not try to risk more than 1% of our total trading capital from our entry point.
- In our trend trading accounts, We have reduced our maximum drawdowns every year.
- 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
- Our best trades are at the start and end of the day; We tend to lose money if We try to trade all day.
- We only trade the daily chart.
- Depending on the strength of the trend, our time frame can range from one day to a month.
- We use our own trading strategies and we are not influenced by other traders.
- 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.