5 Simple Keys to becoming a great trader
You can be a better trader than you are now. Everyone can. If you are very successful you have much more to learn. If you are totally confused here is a way to succeed. These are the Simple Keys I used to develop a method that allows me to win every dayâ¦
1. READ THE BEST BOOK EVER WRITTEN ON THE PRACTICE OF TECHNICAL ANALYSIS
· The best book you will ever read is your own screen-shot journal with brief notes of every market move that interests you.
· Be careful of the market you choose to trade. Some are extremely volatile while others are easier to begin with.
· Experiment with a few markets until you find one that appeals to you
· Study each reversal, pause, continuation, trend, chop, spike and impulse for the signal that moved the market
· Draw S&R and Trend Lines by hand on paper. You will learn much better than on a computer.
· Compare line, candle and bar charts
· Google Bar Signals and Candle Signals, mark them on your charts. These are your entry and exit signals.
· When you canât see how to enter or exit or why the move took off, look at different styles like Time, Volume, Range & Tick Charts.
· Match your Bar, Candle and Line signals with S&R levels and Trend Lines
· Study your journal every day before and after the market and at weekends
· Continually add to your journal and remove older pages that a have less important observations
· Use lots of different time frames: it allows more practice on one instrument to build a better understanding of market dynamics
2. CONSTRUCT A DREAM OF HOW YOU WANT TO TRADE
· Itâs a lonely walk, a personal journey of discovery about yourself as much as the market behaviour
· Everyone has advice to give, the successful and even the perpetual failures. Ignore all and follow your own path.
· Itâs your dream, your perception, how your eye perceives structure, movement, speed, time, size and colour. Trust yourself.
· As you study your journal by investigating price movements, you will begin to favour a time frame and a style.
· Do not allow anyone to tell you what you must, or must not do. What is impossible for one is the best way for another.
· As your dream begins to take form learn all you can to answer every question you ask of yourself
· INO TV.com can be a good resource. Cheaper than books and you can have it play as you watch the charts
· Know this: everything works! But mastering a few of the hundreds of tools requires extreme dedication
· Ignore all who want to argue to convince you they know best. Those who know are at peace.
· Use at least two monitors and three different time frames, but in time increase both of these
· There are no impossibilities, but reaching great heights require great investments of time and effort
3. USE THE RULE BOOK
· Now take your observations and begin to write trading rules based on what you see
· Test your rules in paper trading over and over until you have a high success rate
· Investigate every failure and find rules to help you avoid its weakness
· Do not back-test indicators: the results are appalling. Indicators work best in multiple time frames.
· If you want to learn how indicators work, it will require much more effort than learning price action
· Make sure you have rules for placing and moving stops
· Use a simulator to test your rules
· When you have completed your Book of Rules and are making a profit on the simulator, it is time for serious trading.
4. MAKE YOUR DREAM A REALITY
· Now itâs time to add emotional control into the mix
· Open an account with a broker who offers low commissions
· Deposit enough to cover your contract cost at least three times over.
· Do not trade on margin â you have not proven you can trade without doing yourself damage.
· Download the ORDER ENTRY SCREEN and paper trade it until you are familiar with how it works.
· You might want to use a better front end that you can customise than using the one your broker provides
· When you are familiar with how to place an order and always with a stop, you are ready to trade.
· Do not trade without a stop
· Place the minimum amount of money possible on your trade
· At the start you will make mistakes until your brain becomes accustomed to all the activities going on
· If you are not making a profit stop and go back to point 1. Go through the whole process again.
· If you are making a profit, when you are not trading go back to point 1 and repeat the process again.
5. GET A LIFE
· Trading is all consuming. For a long time it demands everything⦠now get a life
· Refreshing your soul is important to keep a keen edge
· Give to others. Hoarding money after meeting your future needs is symptomatic of a sick soul
· Be happy. You are winning at one of the most challenging ways to earn a living
· To be happy practice virtue for the love of money is the root of all evil
· Sometime live with the poor as one of them, even if only for 2 weeks. It will shape your values and give you balance
· Give some poor people a leg up in life, but select them wisely like you would an investment
Simple â Yes! Easy â No!
