Home Trading Strategies 5 Things Only 5% Of Winning Traders Do

5 Things Only 5% Of Winning Traders Do

5 Things Only 5% Of Winning Traders Do

hey hey what’s up my friends so in today’s episode right i want to share with you five things five things that only five percent of winning traders do right so this means that what i’m about to share with you right other stuff that you know 95 of traders just don’t want to do right so let me share with you what they are number one always be a student of the markets right trading is not like your degree where you study for two or three years you graduate bum needs the end no trading is for life right as long as you’re in this endeavor right it’s gonna be for life right so take me for example right i started off trading with uh pretty much price action trading actually before price section trading so indicators i dabble with it for a little bit but i would say the first start into my trading careers the main emphasis on price action trading i studied stuff like you know candlestick patterns support resistance trend lines multiple time frame analysis and stuff like that and once i have gotten a firm uh grasp a firm foundation in price section trading right i started wondering to myself you know what were this you know institutional traders doing how would hedge funds trading you know do they also adopt a price action trading approach then the more i started right the more i realized the answer is no they they don’t really adopt a price action trading approach and i ask myself so what were they doing so this is where i came across right the the world of trend following right this is a multi-billion dollar hedge funds applying a trend following approach in the futures market so that’s where i learned about trend following and the beauty of trend following is that you can adopt it right in a discretionary approach and a systematic approach so the the book that i encountered was a systematic approach to trend following i learned all about it and then i asked myself systematic approach seems like an interesting way to trade the markets you know what other such trading strategies out there right that are that can be traded in a systematic matter so that’s where i you know got into uh systems trading right i studied you know mean reversion trading systems i studied you know momentum trading in the stock markets and and up to this date right i am still continuously studying and learning more about trading right and the more i learned the more i kind of earn right because i can actually use my money and trade right multiple uncorrelated trading strategies that’s what we have actually discussed in the previous uh episode right and that you know helps me with my trading psychology that helps smooth out my returns over time and there’s a lot of benefits to it and it’s all because right i’m always a student of the markets right i’ve been trading for like you know more than 10 years now but i still i know that there’s a lot out there that i do not know for example now my emphasis is on systems trading but hey who knows i might you know go back into uh other forms of trading maybe learn more about statistical you know uh trading seasonal tendencies and stuff like that there’s a lot of stuff that i really do not know and i want to learn more about it right so that’s the first thing always be a student of the markets number two risk management so i can dare say right that up to two days i have never blown up a trading account that is because of proper risk management this is a lesson that i learned way early right in my trading career now that’s not to say that i’ve never lost money in the markets no i have lost money in the markets that’s not to say that i have never you know have an investment you know go to zero i have investment that went to zero right but those are outside of trading nothing to do with my own trading and the reason why trading right is uh is that i’ve never blown the training account is because risk management proper position sizing and this is simple stuff really is it’s all just math right you just apply the mathematical formula you’ll know how much to risk how much to buy how much to sell and that’s it risk management so if you ask me what’s one of the key things that a new trader should should learn early in their trading career is to understand and practice risk management because once you’ve mastered that you’ll never blow up another trading account again all right number three ignore opinions so ah so with the rights of you know technology social media globalization right there’s so much news there’s so much opinions there’s so much noise in the markets if you just go to any facebook group right or telegram channel you can see people posting their analysis their charts their time frame their their their signals or whatsoever now here’s the thing right i’m here to tell you that as a trader as a professional trader as an independent trader you want to ignore all the noise all the opinions all the news all the everything why is that reason is simple right because your trading is very likely highly probably highly probable different from the guy who’s sharing his analysis someone might post a chat on let’s say euro dollar five minutes time frame there is a potential breakup but how does that concern you because you might be a trader who’s on a daily time frame trading off uh a different time frame with a different trading strategy so if you were to follow someone on a different time frame with a different strategy with the different goals then what’s going to happen is that you will be inconsistent with your actions and that leads to inconsistent results so really ignore all the opinions you know ignore all the analysis ignore the news it doesn’t matter what matters is you your goals your trading plan your trading system that’s all that matters and you must follow them that’s it everything else is noise number four leverage the work of others before you because here’s the thing right in trading i know it can be uh sexy right you know you’ll be the one to find the holy grail right to find that that formula the magic formula that you know speeds up money consistently over time i’ve tried that approach didn’t find success with it and what i found a much more easier path is to leverage the work of other traders before you so go and study proven traders write their works right you’re reading books uh blog posts watching their videos starting webinars going to ssrn i think that’s a like a a hub right where it stores all the academic research papers and study those materials it can provide you with uh trading strategies that comes with there are back test results that you can leverage for your own trading you can take the system tweak it a little bit make it yours right and test it and verify it and see whether you know it still works or not right and how much of a difference are your own results compared to the ones that is being shared in the books in the videos or whatsoever so leverage the work of other traders before you you can really shortcut your learning curve right they kind of like give you already a template like a skeleton right there for you and all you need to do is just add the meat and the muscle and the skin add some hair and you pretty much have a human framework structure a a proven verifiable or tradable structure that you can use right so leverage the work of others before you and finally the last thing very important as a trader as even as a human being right you must be able to think independently you must be able right to stand away from the crowd and tell yourself the crowd is wrong and i am right you must be able to do that because you’re sitting right in trading no one will be there to spoon feed you know we will be there to you know do the back testing the forward testing for you it’s all on you no one else will do it i mean you can pay people to do it but ultimately it’s all on you so one of the ways or one of the things that i see among traders is that they are not willing to do the work they ask me questions like hey rayner which is the best moving average out there man you know when i see such questions like it immediately tells me that this person doesn’t want to think independently right they do not want to ask himself right why is rainer using the 20 period moving average all they want to know is which is the best moving average and when you ask yourself such questions right it kind of you know just ends the chain of learning right you don’t get to learn anymore because the questions that you ask are too superficial so i want you to think independently i want you to think deeper and some ways to do so is to ask yourself why why is raynor using the 20 period moving average don’t ask what us why and when you ask why you will find answers right to your question like maybe why is renault using the 20 period moving average well that could be because right the market is in the strong up trend and the 20 period moving average serves as an area of value that’s why or rather why is rainer setting his stop loss right above resistance 180 above resistance well that could be because you know he he says that you know there’s a good chance the price would spike above resistance and then you know collapse lower and if your stop-loss is just above resistance you might get stopped out so ask yourself why right focus on the concept right so for example trading strategy why does this trading strategy work don’t ask yourself what is the best settings for this training strategy because that again right just ends write your learning curve down there ask yourself why why why why be independent right think independently really in your your your life right will just look entirely different right you can be sure that you are the rare minority out there who can think on your own two feet and you don’t have to be spoon-fed and that’s powerful okay so as a quick recap number one always be a student of the markets your learning never ends number two practice proper risk management number three ignore opinions ignore the news ignore all the noise out there number four leverage the work of other traders so you can reduce your learning curve and number five think independently right focus on the why focus on the concept so with that said i’ve come to the end of today’s episode and i will talk to you soon you


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