Starting as a new trader everyone faces a question that should we trade with the flow or opinions? The biggest mistake that new traders make is they think that making the right predictions is the only way to make money. This is not true. The best way to be a good trader is to use strong quantitative trading methods. Testing a new method by looking at prices in the past.
It’s not about being a genius who knows what will happen, but about being a trader who makes money from what is going on.
Take signals from price action as it happens. They don’t predict what will happen ahead of time. They react to what is happening right now, not when they think about what will happen. This is one thing that most new traders can’t get their head around because of how long it seems to learn.
The worst thing a trader can do is have a “conviction” about a trade and then hold on to it even after it turns out to be wrong.
Best for traders: When they’re proven wrong, take a quick loss and have the least amount of money lost possible.
Make money as a trader: Small losses and big wins are what makes them profitable. A trader can’t be profitable if they end up with a lot of losses. Even if you have a high winning percentage, big losses can wipe out your big wins and even big wins. Flow like water in your trades so that you can make the right decisions as the price moves. This will help you make the right decisions as the price moves.
If you want to be a successful trader always trade with the flow. Emotions and opinions can ruin your trading capital.
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