Home Trading Strategies 7 Things Professional Traders Do That Losers Don’t

7 Things Professional Traders Do That Losers Don’t

7 Things Professional Traders Do That Losers Don’t

hey hey what’s up my friend so in today’s episode i want to share with you seven seven things that professional trader do that losers don’t okay so number one professional trader okay if you’re serious in this business you have to be open to learning so what this means right is that you can’t think that oh my trading methodology or strategy is the best you know i can forget everything else you know so take me for example all right i started off with price action trading in for a while right quite a long time i thought that this is the best way to trade the markets right no indicators you know just the price because the price is all you need now don’t get me wrong there’s nothing wrong with price action trading but if i were to stay with that belief right it’s going to limit my growth as a trader because i wouldn’t be exposed right to other different trading methodologies like trend following okay so this is another method that i’ve you know learned along the way because i told myself i had to be open about trading i had to learn right what other traders are doing what they are finding success with and see how i can replicate it so i got exposed to trend following then later down the road i got involved with systems trading uh in systems trading itself there are multiple you know ways you can trade the market you can do it short term you can do mean reversion trading you can do momentum trading so yeah have an open mind right because when you have an open mind you get to learn more ways that you can trade the market what this does for you is that eventually you will have a portfolio of strategies systems right to trade the markets so for example when you are trading multiple systems right this will help you improve your overall trading results because for example one system right let’s say system a it doesn’t do well there’s a good chance that system b might be doing well at that point in time so what it does is that your overall equity curve right is smoother over time because some systems that are doing well right can compensate for other systems that are doing poorly compared to you know just trading one system or one strategy if that market condition isn’t suitable for it right then guess what your entire portfolio will go in the rate so yeah be open to learning okay because this will really elevate right your trading results number two you must know when to stay out doesn’t matter whether you’re a discretionary trader or systems trader you must know when to stay out of the markets so for example let’s say you’re a trend trader you buy dips in the stock market right if the stock market is in a bear market then guess what you need to know when to stay out of the market you wanna you wanna avoid right buying pool bags right if the overall stock market is in a downtrend so yeah know when to stay out of the market and one simple tip that i have for you is this right if a stock is trading below the 200-day moving average right you’re better off you know not trading that stock because chances are the stock will continue heading lower okay so just something to share with you right number three you have to know right that you can be wrong right even though you might be really sure about trading setup oh you know all the stars are aligned rainer you know the moon the sun the asteroids they all align right this market is going to rally up for sure well guess what nothing is for sure in trading nothing is guaranteed the president could just come out and make a news and say something and the market could just collapse in an instant so yes the stars can be all aligned blah blah blah but it doesn’t mean that the market will behave in a way that you expect it to right so always be prepared right that you could be wrong even though all the stars are aligned right know that you can be wrong and once you know that you can be wrong once you embrace that fact then this brings me to point number four you will manage your risk because if you accept that you can be wrong from time to time no matter no matter how sure or how good your trading setup is then this will assure you or this will make sure that whenever you put on the trade you won’t be betting the fund because even if it’s a loss that will just be a fraction of your trading account so you won’t so call you know go bus just like that okay so number four is manage your risk number five as a professional trader you must trade with an age in the markets i can’t emphasize this enough and this hit me hard right when uh i believe it’s uh from the book market wizards where jack schwager was speaking to i think one trader right and the trader was saying hey jack you know you know so i’m just gonna paraphrase this right because this is just based off my memory hey jack you know uh isn’t just risk management enough isn’t psychologists just enough right i can have a minimum of a one to two raise reward i raised one percent of my account i should be a profitable trader right jack and then jack went on to reply and said you know what the best example of this is that for you to go down to the nearest casino right you can have the best psychology the best risk management you can even bring down a psychologist with you but guess what eventually you’re still going to lose money to the casino why is that that’s because the house has an age over you so without an age right everything else is rendered useless everything else is secondary and this is the same for trading you must have an age in the market you must have something right a strategy that if you execute it repeatedly right will generate a positive outcome a positive expectancy for you okay so this is important number five trade with an age in the markets number six execute relentlessly so once you have defined your age once you adopt proper risk management what’s left to do is to execute relentlessly whenever there’s a valid trading setup you take the setup again and again you never miss a single one of this setup this is what i mean by you know trading like a robot executing relentless relently relentlessly okay because here’s the thing because when you start cherry picking your trade i mean i don’t feel too good man i don’t think the market is going higher let me just skip this trade and the trade that you skip guess what ends up being a monster winner and that could you know bring up your p l of your account you know into the green but just because you know you weren’t feeling too good you skipped that trade and you know your account remains in the rate so yes you can be trading with an age yes you can have proper risk management but without the right execution to execute relentlessly your results right might not be the way it should be okay and finally the last thing right as a professional trader you must be humble you mustn’t let the highs and lows of your equity curve right reflect how you feel so for example let’s say you make a killing in the market right you are up like you know 30 40 this year you shouldn’t be too overjoyed so happy right because when you underperform right then that uh happiness that you had right will reverse down lower and bring you down to the bottom of the peak right because you know you’re having a loss you don’t feel so good your emotions will also reflect the way you are so the happier you are when you’re up there the lower your fall right when you’re down there so don’t have to brag don’t have to you know show off just be humble stay neutral right just take what the market gives you stay neutral because when you are neutral right the highs and lows of the market the highs and lows of your equity curve right won’t affect you too much and this is important because this is what will keep you executing your trades consistently over time day after day be humble be neutral that’s how you get longevity in this business so a quick recap number one professional trader number one you have to be open to learning number two you have to know when to stay out of the markets number three you have to know that you can be wrong no matter how sure you are number four manage your risk number five trade with an age number six execute relentlessly and number seven be humble sounds good so with that said i wish you good luck and good trading i’ll talk to you soon


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