As a new trader, things that are easy for you to do and make you feel good are almost always bad ideas. Trading is a hard thing to do, and that’s why 90% of people don’t make money with it. There are some truths to keep in mind while trading.
It’s part of the “If you feel good, don’t trade.” When you’re in a downturn, it feels good to double your position size, speed up your trading, and so on. Instead, do the opposite, cut the size in half and slow down your trading. In this case, Richard Weissman said that.
- After a trend has broken out, it is usually too late to buy into it when it is comfortable to do so. Instead, you should buy into a trend when it is still uncertain and uncomfortable.
- Making money from a losing trade is a smart move, but it usually doesn’t work out well.
- Most new traders find it hard to buy strong prices and sell short weak prices. Most money is made in the markets by simply going with the flow.
- It’s easy for new traders to figure out which markets are going to rise and fall, but few can make money doing that. Bull markets have no long-term resistance, and bear markets have no long-term supports.
- When a new trader is very confident in a trade, they feel like they can trade too big on it. Even though it is uncomfortable, they still have to keep their risk in check.
- To be a good trader, you have to learn how to trade for yourself. If you just follow a newsletter’s advice and don’t learn how to trade for yourself, you won’t be able to make money in the long run.
- It feels good to trade your own ideas, even if you don’t know what will happen. Trade the actual price action, no matter what you think will happen.
- You want to look for the Holy Grail of trading, the system that always wins. Instead, look for a strong system that fits your personality and is strong enough to work for you.
These Are The Truths To Keep In Mind While Trading.