tips for become a good trader?

[Fonz]

Can you walk us through a couple of mistakes and what you learned?

Since you ask for a couple...
I always traded 2 contracts (or mini) thinking that as soon as my first target will be hit, I will move my stop for the 2nd contract to breakeven or bkv + the usual slippage (2 ticks). That way, I was able to "have a free trade" whatever happened. Wrong for me
Since I trade on momentum, the profit target is not like a trend, and is a lot shorter than a typical day trade.
Now, I have a fixed target, where I think I should be able to hit it at least 80% of the time if the trade is successful. I will move to breakeven only when momentum is fading near the target.

The results are so much better that way, for me. I think it all depends on you trading style. This is why focusing on the best and worse trades are so important to improve.

 

[deaddog]

The results are so much better that way, for me. I think it all depends on you trading style. This is why focusing on the best and worse trades are so important to improve.

You are trading a much faster time frame than I do.
So your best and worst trades were on Fed days. I can see that. Back when I day traded ES it was always a gamble, the swings right after the announcement were wild to say the least.

Right now I'm playing with profit exits. Trying to figure out if exiting a set target is better than taking some off at the target and letting the rest run. Don't have enough data to make a decision yet. I favor letting a part of the position run on the theory that 80% of my profits will come from 20% of my trades and if I cut that 20% short I'll be worse off in the long run.

Up until a month or so ago I was exiting when the trend broke, selling on the way down instead of on the way up. Recently I have been exiting part of the position at a target then letting the rest run with exits at trendline breaks and ma's.

Who says Greed doesn't influence traders.

 

[Esha.J]

Acknowledge your failures, and if they cannot be eliminated completely, try to adapt to them. The most important thing is to resist the illusion of owning the alchemist trading stone in some way. This attitude will definitely ruin your career in the end.

 

[JimmyChoo]

the good trader never skip demo trading , they practice always besides a real account . they practcie any kind of new trading strategy on there to see the performance how it works.

 

[FahadMd]

In trading you're in the risk management business. So, keep the trade size small, say 1% of total equity. This ensured you can't blow up quickly and stay in the game in the long term (google 90/90/90 rule). But before you trade real money, develop a strategy and back-test it. No eye-balling but systematic back-test to see whether it works or not, what the drawdowns/risks are. Can be done with a few simple scripts and for cash FX if you should be so inclined, you have not to worry about futures rolls.
When your system/approach has proven to be profitable after costs, then you can start with real money, again keep the trade size small.
Detach yourself from the monetary aspect. Trading is a business, no place for emotions (nb: so the more you automate or give the computer the better for that reason, also small bet size keeps emotions at bay).
Lastly, keep your costs under control. This applies to commission and platform costs. Keep things simple and low cost. There is so much mumbo-jumbo sold as "essential" etc which is so unnecessary. You just line the provider's pockets. (for my own biz which is not FX, I pay $2/lot, no platform fee, no data fee which perfectly suits my style and objective. I could have easily signed up for an all bells and whistles platform for 100 bucks a month before the first penny P&L).
Otherwise, good luck!

its a very nice post with exact information , got so many fine lines , thanks for your reply Sir.

 

[Ahmed Solaiman]

the good trader never skip demo trading , they practice always besides a real account . they practcie any kind of new trading strategy on there to see the performance how it works.

i support micro account instead of demo , because live trading can bring real knowledge and experience.

 

[Tritical]

i support micro account instead of demo , because live trading can bring real knowledge and experience.

I agree with you. Demo accounts are good to develop trading skills and strategies, but you can’t make money by demo trading and understand risk management. To do so, you have to take small risks, and micro accounts are good for that.

 

[PeterNguyen]

i support micro account instead of demo , because live trading can bring real knowledge and experience.

hard agree. Trading with real money even small amount teach you how to handle your emotions and proper fund management better than demo account.

 

[Paulsy]

The habits of successful forex traders are what make them successful. The daily attitude and trading decisions are actually what drive the success of an investment. It’s not all about what you know, it’s about how you execute. The way your knowledge is being reflected in your trading attitude is what makes you a successful trader. Remember that you have the ability to control your own behaviour, even if you can not control the market. That’s why acting like successful traders can help you to become one.

Top Habits of Successful Forex Trader

1. Trading without Emotions
Since your success in forex trading depends mostly on the decisions you make, they must be stripped of any emotions or psychological effects. Excluding your emotions will help you make objective trading decisions, and trade with more confidence. However, it is easier said than done since managing emotions is not possible most of the time.

2. Learning Constantly
One of the most common habits of successful forex traders is the ongoing curiosity and readiness to learn. So, you’ll have to keep learning if you want to be a successful forex trader. Because of the dynamic nature of the forex market, there is always something new to learn.

3. Developing a Plan
No matter how experienced a trader is, having a solid trading plan is a very essential step to succeed in forex trading. Developing a plan to serve as a guiding framework is crucial to achieving consistent profitability in trading. It is pretty much like a road map that keeps you on track to your trading goals.

4. If your Strategy works, Repeat it
Forex strategies can be based on technical or fundamental market analysis depending on your preferred analytic metrics. To trade effectively you need a reliable strategy that works in the long term. The changeable nature of the market may demand frequent changes to your trading strategy. But if you’re lucky enough to develop a strategy that is effective enough, you’d better stick to it as long as it works.

5. Cut Your Losses Early
Since forex trading is highly competitive and dynamic, it is difficult to be right all the time. When the market goes against you, try to be flexible and never stubborn. One important thing you need to practice is cutting your losses early. If you can’t find a clear sign that things will go as you wish, get out the sooner you can and try to focus on the next profitable opportunities instead of holding on to the losing ones.

 

[Agraphia]

The basic foundation has to be very, very strong. Focus on learning when you have time, money can be made later. If you start by focusing on making money, you won’t be able to learn. So, just forget about making money.