Home Trading Strategies 5 Things To Avoid If You Want To Be A Winning Trader

5 Things To Avoid If You Want To Be A Winning Trader

5 Things To Avoid If You Want To Be A Winning Trader

hey hey what my friend so in today’s episode I’m gonna talk about five five things you must avoid if you want to be a winning trader number one avoid having expectations on the market avoid you know saying stuff like oh I want to make fifty dollars every day from the markets oh I make five hundred pips a week wanna make ten percent a month every month forget it right forget your expectations because the market doesn’t care what he want it goes where you want it wants to go you do what he wants to do it doesn’t care what do you want out of it and if you think about this right every trading strategy I that works it exploits like a certain pattern in the market for example trend following a exploits trends in the market does it mean that you know I’m gonna make money every month trading trends of course not if the market doesn’t trend I don’t make money and it’s the same for your strategy maybe you are trading mean reversion in the markets if the market doesn’t mean revert guess what you’re not gonna make money so the key here is that don’t have expectations on the market the key here is that you should have a plan to follow your plan and to make as much money as possible during times when the market conditions are favorable to your strategy and to lose as little money as possible or during your drawer out by practicing some risk management that is what you should focus on and not having real expectations on the market let’s do it it cares what you want alright number two system hopping so this is a big one right for traders who are just getting started in this business right because I know right the way we are brought up right whenever we make a mistake we are taught to you know stop doing it and to find a solution to do something else but when trading right just because you have a few losses it doesn’t mean that that’s a mistake that could be just part and parcel of trading if you are hopping around from trading system to trading system then your trading will be all over the place you’re not gonna find consistency and if you don’t have consistency needless to say your results will be inconsistent so don’t hop from system to system right my suggestion is stick to one system one methodology execute your trades are consistently a simple size of hundred treats after you have a sample size of hundred treats there you can conclude whether this works or not instead of you know taking three trees on the breakout system out of five traits or mean reversion under six traits one counter train you know after we shot your results are pretty much all over the place because you’re trading everything in anything all the different systems okay so be consistent have a decent sample size of trades before you come up with anything conclusive number three avoid one thing to be spoon-fed so this is a huge problem that I face myself we know as I indicate and share stuff with traders I often get questions like hey Rana which is the best moving every should I use the 20-period moving average on a 55 period moving average hey Rana when I trade breakout is it better to trade the 52 it breakout on the 50 week breakout hey Rana this particular trading system doesn’t work for the crude oil market or does it work for a nifty or does he work for the a 50 hey Rana which indicators you know suits trend-following stuff like that and this boggles my mind because if you expect to be spoon-fed then how are you going to find success in markets or anything in life when do you want to find success in trading or anything in life in business you have to be willing to do the work you have to verify you have to validate to find out whether something works or not you can’t just take my word or some guru word for it because we might be wrong we might have heated agenda to lead you down the wrong path and maybe to know to eventually make you sign up for our courses you never know so this is why you never take anything at face value you always verify you always validate you’ve got to do the work don’t expect to be spoon-fed because if you expect to be spoon-fed then your girl pretty much lose right like 90 plus percent of traders out there who expects to be spoon-fed if you want to be different fake things into your own hands do the work validate verify and never trust anything or anyone okay and before you must avoid complexity so this is a big one for me as well so in recent years I’ve developed my own systematic trading strategies and I find that those strategies that are robust and those that works well are relatively simple I can actually no explain it to you over a few lines three or four lines and you can have a good idea what the strategy is about and the more indicators are add the more filters are add the more criterias on it the strategy tends to break down so this is an aha moment for me as well all right instead if you want to be a winning trader to be a profitable trader you want to have strategies that are relatively simple something that you can even explain to a 12 year old you know what you’re looking for you just is too complex I’m looking for this cross over RSI needs to be over so it must be entering traits on a Friday you know the market cannot move you know more than 100 pips a day and stuff like that right chances are that strategy is not gonna work in the long run okay it must be backed by logic and relatively simple there usually are strategies that I’m keen to trade and usually would work for the long run so number four avoid complexity and number four and it’s kind of you know relates you know one thing to be spoon-fed is that you want to avoid stuff there there automate things for you know like expert advisors copy trading signals of is that you know these things that actually do all the hard work for you well guess what to me it doesn’t really work all right because again you have no idea how the systems or blackbox algorithms book anybody even dance work when the drawdown comes you’re not gonna be convinced right to stick to those systems so forget about you know outsourcing or delegating you’re trading away if you want to do that right buy an index van right you know do something that is more passive I don’t try to you know automate it or delegate to something that you don’t even know you don’t even trust that you can’t even verify or validate if you really want to go down that path by index fund hold it for next 4050 years right chances are you’ll make more money right compared to signing up for signal service or copy tweeting all right so well that’s it I have come towards the end of today’s episode if you’ve enjoyed it give me a thumbs up button subscribe to my youtube channel the link is below and I will talk to you soon you


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