The most important things in trading !

Let’s be honest with ourselves, each of us was or still is looking for that one guaranteed strategy to win every trade and make a lot of money.

I’ll let you in on a little secret, there is no such thing and anyone who says there is has probably never actually traded.

One of the most important things for any trader is their state of mind.

State of mind

Every trader has dealt with this problem, you are in a trade that is losing volume and gradually going in a different direction than you bet on.

There are a million thoughts running through our heads. Quickly close the trade while we’re still not at that loss. Hang in there and trust your strategy. We decide to close with a small loss and suddenly the market shoots off in the exact direction we bet on. Suddenly we are influenced by our head and we are already carrying that experience into the next trade. Every trader has experienced this feeling, but what is the difference between an experienced trader and a beginner.

I would like to tell you it is huge, but in my opinion and observation, it is still the same. Over time though you will become more confident in your trades and enter them with more confidence. But you’ll probably have the same thoughts in your head as when you started.

Take your time

Literally, take your time. At the beginning of your journey you will probably try to do as many trades as possible in a day. It’s definitely a way to get into trading quickly, but eventually you’ll understand that you don’t need to do 100 trades a day. That way you will probably get to 0 in your account as quickly as possible.

I wouldn’t worry at all, take a break for a day or a week and then come back to the market again. Nowhere does it say we have to do 20 trades a day.

Lots of practice and market observation is definitely a good thing. However, the problem is that people start out trying to see their setup where it isn’t and often enter trades that don’t actually make sense.

In my opinion and the opinion of other traders, there is no rush. It takes a long time to work out and understand how candles and the market moves. More like a few years. Even though trading is a journey that never ends, one is always trying to learn new things and improve.

Record your trades

One of the things that helps us get better is to write down individual trades. Writing down what trend I entered the trade at, what was my stop loss, take profit, why right there, justifying each move. Questioning each of our actions and asking ourselves if all the steps of our strategy were fulfilled, if we would go into the same trade again.

All these things will help us to get better results. It will also make us more aware of why we entered at that particular moment, if it was the right decision and overall it will improve our view of individual trades.

Risk management

One of the most important things is to handle your risk management.

Every trader has encountered the problem of not controlling their risk management. I highly recommend using stop-loss. A lot of people show their huge wins, but they don’t show the other side of the coin, which is the losses. Those who can control their losses have won. They will come for sure at some point. For some people right at the beginning, for some people maybe later, but none of us can avoid them.

Learning to lose is one of the hardest parts of trading. No one is comfortable with it. But unfortunately, it’s part of this huge game.

So stop-loss, for those who don’t know what it is. We simply set the price at which we take the loss. If it’s a long trade, for example, we set a price at which we sell immediately when the market goes down. ¨

I’ve been burned a million times when I thought the market couldn’t go any lower, I’d hold for a while and it would go back up. It ended up exactly as you would think, the market liquidated me and I wiped out my account very quickly.

Of course all my opinions are not financial advices and I am not imposing anything on anyone, just presenting my opinion. So in my opinion, risk management is perhaps the most important element along with your state of mind.

That’s all for today, be careful in the market and have a nice day.

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