50 Successful Traders' Habits
- Invest in yourself before you invest in the markets.
- Learn the rules of the game.
- Practice, practice, practice on demo accounts.
- Start small on a real account.
- Do not expect to become a millionaire with $100 deposit.
- Have realistic expectations.
- Learn to identify the trend.
- Learn to identify trend reversals.
- Develop a trading system based on trend following and trend reversal.
- Test your system.
- Revise your system to boast low drawdown.
- Revise your system to have a high percentage of wins.
- Lock small profits.
- Incorporate risk management rules.
- Be easy on leverage. It’s risky.
- Calculate the position size every time you open a position.
- Always place a protective stop loss.
- Move the stop loss to protect profits.
- Do not trade the news.
- Define the trading hours.
- Follow your system religiously.
- If you cannot stick to your system then have an EA developed for you.
- Do not overtrade.
- Trade only high probability setups.
- Test your system and adjust its parameters for different currency pairs.
- Do not try to beat the market.
- Follow the market instead.
- Do not let your ego take over your trading.
- Do net let your emotions take over.
- Be disciplined. Su Tzu considered discipline a matter of life and death.
- Accept losses. They are part of the game.
- Nothing is 100% in life. Trading is not an exception.
- Amateurs want to be right. Professional want to make money.
- While beginners are looking for the best entry, professionals are looking to lock profits.
- Trend is your friend.
- Leverage your knowledge.
- Avoid the frog’s and the scorpion’s traits.
- Do not be greedy.
- Always remember the farmer with the golden eggs.
- Oscillator extreme levels are just a warning.
- Support and resistance levels break all the time.
- Moving averages substitute trendlines.
- Price is the boss not indicators.
- Indicators are secondary tools.
- Volume is not available in Forex.
- Do not expect to become a successful trader by just reading a couple of articles or books. It takes a lot of time, reading, knowledge and practice.
- Determination, discipline and knowledge are imperative to survive the markets.
- Ego is a killer in the markets.
- Trading is studying the crowd’s psychology.
- Technical Analysis unveils the crowd’s trails.