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How to Become a Winning Trader (Even if You Have Been Losing for Years)

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How to Become a Winning Trader (Even if You Have Been Losing for Years)

hey hey what’s up my friend welcome back to today’s episode where you learn right how to become a winning profitable trader guaranteed I know that’s a strong word to use right but you understand why later on so when you want to find success in trading or anything that matters what is the business or whatsoever right you must have a framework you can’t just go in blindly you know and start shooting arrows and hopefully you hit something but that’s not how it not how it works all right it’s kind of like me right giving you a map and a compass and I tell you that in the mem right the spot X in a mem right you will find treasures ten million dollars yours for the taking now let me ask you if you just have a compass and a map on him how confident are you right to reach that ten million dollars on first try well probably not right you would more like you know more like you know go towards the direction of the ten million dollars you ain’t come to an obstacle maybe like a big hairy monster in your path right then you need to backtrack right and avoid fighting the monster maybe you encounter a huge mountain that is so high that you can’t climb you got a skirt around it and you know find ways to overcome these little obstacles in your way and every obstacle that you overcome brings you closer towards the goal right at ten million dollars and this is the same for trading you will face obstacles in the way and you gotta find ways to overcome it circumventing s’right and improve on your processes right before reaching your end goal so let me share with you a framework right that accomplish this for you so the framework is what I call the dirt framework de our hour let me explain d stands for develop your trading plan that’s one develop your trading plan so before you put on a single trade you’ve got to define your plan you define your strategy this means right you’ve got to identify the market conditions that your trading is it trading in a trend trading breakouts trading plug back etc then define the entry condition how will you enter the trade limit or the order market or the stop order then you got to define your exits how will you exit the trade is it a swing trade is it a trend following trade you’re going to define the markets your trading is it FX is it stocks whatsoever you got to define write your risk management how much are you risking poetry you can see that all these questions right will form your trading plane and it’s the first thing you need to do a consistent set of rules to follow which is your trading plan number two you must execute your tricks consistently right and get a minimum of a hundred traits the reason is because right in trading one plus one may not be equal to two you’re not dealing with certainty over here you’re dealing with probability so it’s more like one plus one sixty percent of the time it might be to forty percent of the time it might be number twenty I know there’s a little bit of you know confused confusion confusion there but you can I get my point you’re dealing with probability in trading right nothing is certain so this is why you need a large sample size of trade right to find out whether a trading strategy works or not okay so minimum is hundred traits to execute it consistently because if you don’t have a large sample size of trade let’s say you have a sample size of you know seven or eight traits it could be that you’re in a losing streak and a start of your your trading and after a final six losses you claim that that’s not work and you abandon a strategy but the behind part may be the next ninety traits right you will realize that that strategy actually makes money in the long run it’s kind of like having a coin in your hand so every time it comes up here you win ten dollars every time he comes up till let’s say you lose five dollars let’s say the first five coin toss you toss is come up all tilts and you lost like what twenty five dollars are you gonna stop tossing the coin and say that coin is curse is not working no right because if you know that if you have an edge in the markets right you need to toss that coin right maybe you know 100 times 200 times right before your H can play up and this is the same for trading your you got to let the law of large number work in your favor right execute your trades all right a minimum of 100 times before you conclude whether the trading strategy works or not so that’s number two executing your trades consistently number three right you want to journal down your trades this means that every time you put on a tree you got to you know write down right whether it’s a winning trade or losing trade you’ve got a screenshot a chance right you know where you enter where you exceed the trade all right was the profit or loss on a trade let’s say you know you risk one hundred dollars on a tree you make two hundred ollars that’s a profit of two are right two times your initial resort down there two are you took on andreas a loss a loss of let’s say $50 so that’s half of your initial risk among so you put a lot of zero point minus 0.

5 R so what you’re to do is to record down your trait so you have a matrix that you can track okay and number four finally what you want to do is to review your trades right find out right whether a particular trading strategy is making you money or costing you money in the long run so let’s say you have a you know execute that 100 trades right right now you know what is your ratios what is your winning rate what is your average risk to reward on the tree all right and if you find out that hey you know this strategy actually you know is not so profitable maybe it’s just that you know break even mediocre what you can do is to look at a chance that you have saved earlier and ask yourself right among all the hundred shots out there are there certain patterns that lead to your winners or maybe there are there are certain things that the chart has certain patterns that you not realize that actually lead to a higher probability of a win and also other sudden patterns right every time in a cursor it tends to lead to a loss so once you ask yourself those two questions you want to avoid taking those traits right which have a lower probability of success and focus on picking those traits there has a higher probability of success okay once you’ve done that right you can go back to the drawing board your trading plan and make the necessary tweaks and adjustments and go back on to execute those traits record in review once again and this is the framework name I’m sharing with you right I I can guarantee you that if you follow this framework right there is no reason right you are not a consistently profitable trader is it is it difficult is there work involved yes there’s work involved it’s tedious but this is the way it’s done if you want to be a profitable trader and my new this is coming from a discretionary trading point of view alright systems trading is a different thing altogether and if you’re interested right we can talk about that in another episode so with that said right quick recap the Durr framework number one is develop your trading plan number two execute your trades consistently number three record your traits and number four review your trades so with that said I have come to us to the end of today’s episode if you’ve enjoyed it hit that thumbs up button subscribe to my youtube channel the button is below and I will talk to you soon you

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