Profitable Trader Strategy For New Trader,Principles of Profitable Trading

Top Principles of Profitable Trading

Top 12 Principles of Profitable Trading for a new trader are given below. These Principles of Profitable Trading are very helpful to a new trader.

  1. There are more long trades when the stock market is up and more short trades when it’s down. The best way to lose money in the stock market is to try to go against the flow.
  2. Avoid getting into or out of the market without having a detailed trading plan. This plan includes things like when to enter and exit the market as well as how much money you can have in each position at one time as well as rules that will work for you.
  3. Do not trade based on your own feelings of fear and greed. Instead, try to profit from other traders’ fear and greed.
  4. Find ways to measure and back test price support and resistance levels, then trade in the direction of the trend in your time frame by following the direction of the trend.
  5. Enter trades where your chances of making money are much better than your chances of losing money. Prepare to get out of a losing trade if the price moves to a level that makes you think you might be right. You should be ready to trail stop a winner for as far as it can go.
  6. So if you are wrong, you will lose no more than 1% of your total trading capital if you are right. As long as the trend is going in your favour, you can win as big as you want.
  7. The total risk you take should be limited so that if all of your open trades go against you at the same time. You can’t lose more than 3% of your money at once.
  8. Focus your trading on a small group of trading vehicles that you know a lot about and have a lot of experience with. You should be able to read their past prices very well and know how they have changed over time.
  9. Master a few trades, then add more when you have proven them to be stable in real trading. Before you start trading with real money, be very careful about where you enter and exit the market.
  10. As soon as possible, they try to figure out how prices will move and how to react to them.
  11. When you trade, don’t trade based on how much you want to be right. Only trade for money.
  12. Before the market opens, we should do all of the work for trading.

Also Read Top 5 Obstacles To Profitable Trading


Leave a Reply

Your email address will not be published. Required fields are marked *

Post comment

More Posts