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15 Keys of Succesful Trading

This document outlines 15 keys to successful trading. It emphasizes the importance of emotional control, planning trades thoroughly, not trading against the trend, having patience, avoiding rushing into trades, cutting losses strictly, learning from mistakes, managing risk, avoiding scheduled news, thoroughly evaluating trades, scaling out of winning positions, avoiding early losses, and balancing anticipation and confirmation when trading. Successful trading requires discipline and following a consistent strategy and plan.

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KucingRockMix
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107 views4 pages

15 Keys of Succesful Trading

This document outlines 15 keys to successful trading. It emphasizes the importance of emotional control, planning trades thoroughly, not trading against the trend, having patience, avoiding rushing into trades, cutting losses strictly, learning from mistakes, managing risk, avoiding scheduled news, thoroughly evaluating trades, scaling out of winning positions, avoiding early losses, and balancing anticipation and confirmation when trading. Successful trading requires discipline and following a consistent strategy and plan.

Uploaded by

KucingRockMix
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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15 Keys to Successful Trading

1. Emotional Control Is At The Heart Of Good Trading.

Controlling yourself allows the ability to think clearly at each


given moment, resulting in success as a trader.

2. Precise Planning Equals No Failure.

Every trade should be noted and analysed thoroughly for at least


a 30-minute period, failure to plan out targets and worst case
scenarios will result in closing of trades which have a longer time
span (swing trades)

3. Don’t Trade Against The Trend.

Remember The Trend Is Your Friend. Avoid trying to pick out


bottoms and tops, await valid price action followed by other
confluences that coincide together providing strong confirmation
to your trade setup. For e.g. Trend line Bounces, Candle Stick
Patterns, RSI Levels & Support and resistance.

4. Patience

(ANALYSE, OBSERVE, EXECUTE)

Long-Term patience will keep your confidence and optimism high!


Short-Term patience will help you wait for the best trades!
Success doesn’t come easy and rarely are fortunes made
overnight. Be willing to pay your dues and put the work in, to
achieve your goals.

5. There Is No Rush!! Allow the Trade To Come To Us.

Never get into a trade based on emotion. If price has already


passed a good level await a retest or set and order!
Furthermore, we can set an alert using TRADINGVIEW or CALL
LEVELS on a PC & Mobile Phones to give us a heads up for when a
currency is approaching a required level. Failure to do so will
result in us being down in a trade which isn’t yet ready to change
course.

6. Cut Losses With The Most Strict Discipline.

We must preserve capital at all times. Losing is part of


trading, but opportunity cost is to be considered when hoping for
a losing position to reverse course (Direction). For e.g. if a
profitable trade reverses and violates support or resistance, get
out and be willing to re-enter.

This will save us from big losses and you can always re-enter if
the pair crosses the entry price again.

7. Make Good Decisions & Winning Will take Care Of


Itself.

Focus on how you play the game and not the scoreboard (Money).
Trade with discipline and always follow your trading plan.

8. When you lose, don’t lose the lesson!

Forget the names but remember the events. Those who don’t
remember the past are doomed to repeat it. Make mistakes with
composure and character, without blaming others the markets

are uncertain, reason we must take time and precaution and don’t
dwell on mistakes. (Note them down and learn from them!)

9. When in doubt, get out.

Scrutinize your positions when back testing and managing trades


and you won’t be left holding a trade without reason (Thoroughly
analyse 4 hourly) Be willing to change direction if and when
necessary because your flexibility as an investor is a big
advantage which should be embraced!

10. Keep your risk/reward profile in check.

Profits can exceed losses even if the number of losing trades are
greater than the number of winning trades. Always properly
manage money, size positions accordingly, obey stops and
protect profits. These rules will keep us in the game!

11. Avoid scheduled news.

We are unable to foresee breaking news, but scheduled news we


can step aside from. Scheduled news includes interest rate
announcements, cooperate earning announcements and various
daily economic releases. Remember to only trade when you have
the best conditions.

12. Note & evaluate every trade before and after.

Noting every trade will ensure you understand the concept of why
the trade was executed, & rules which allowed this trade to be
valid.

Additionally, providing you with the how’s and whys the trade did
or did not go to plan!!!

13. Scale out of winning positions as they work for us.

This achieves two goals: taking some profit out of the trade which
keeps us in the game!
If the trade reverses you took some profit at good spots. If the
move continues you are still on board for the ride!

14. Don’t dig yourself into a hole early in the day or n


your career.

Be willing to observe the market and make an informed decision.


Missed money is better than lost money, so wait patiently for the
best opportunities to arrive.

15. Trade with a blend of anticipation and


confirmation.

Balancing these two will mean that you adopt a system of “ if this
happens, ill do that.” Wait for your calling!!!

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