What are your top 3-4 trading rules, for example, never add to a losing position?
I have 7 high ROI trading habits/rules.
They are as follows :
- Studying charts : Practice will 10x your analytical skills. Consistent practice will make you find new patterns, edges and setups. New edges and better analytical skills will boost your trading arsenal.
- Journaling trades : Reviewing past trades will help you understanding your mistakes. Tracking your emotions during entries and exits can improve your psychological edge. Overcoming mistakes and a better psychological edge will improve your trading by 10x.
- Backtesting : Back testing your system over and over again, by correcting your mistakes, will drastically improve your execution and self discipline level. A better execution and self discipline will sky rocked your RR and win ratio.
- Planning trades in advance : A step by step plan will help you control your enemies like fear and greed. The trading business is a world controlled by fear and greed. If you can control fear and greed, you will have an insane edge against most traders.
- Checking rules before a trade : A streak of wins make you feel invincible. A streak of losses makes you take revenge trades. Print your trading rules in front of your PC and check them before you take any trade. Trading is a long term business. Rome wasn’t built in a day.
- Thinking in probabilities : Thinking in probability will increase your mental accuracy like nothing else in the world. Execute like a robot and manage risk and trades like a casino.
- Increasing goals gradually : Trading is the most rewarding business in the capitalism era. Your effort and skills will compound 1000x your money, so break your limits.
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