Trading can be very lucrative because it delivers rewarding results—but only if you do it right. What better way to learn how to trade profitably than from people who have already succeeded in it?
Here, we list some of the tried-and-tested secrets for successful trading from prominent traders:
You need to be confident. Confidence is half the battle won. It takes a lot of guts to succeed in trading, so you need to build that self-confidence to take on any market movement that comes your way. Build a well-thought-out trading plan, believe in your strategies, and trade with conviction.
You need a method. Think of this like you’re playing in a casino: you need a robust method to give you an edge in trading. Although there is no real guarantee of winning because of the competitive market, having a systematic plan with objectives and rules will increase your odds and reduce your risks of losses.
You need to control your emotions. As a trader, it’s very important to make decisions based on logic and not emotions. Although you are allowed to feel disappointment when you lose and jubilant when you win, you need to stay on track with your trading plan and not get side-tracked by greed, fear, or anger when you’re in the middle of the action.
You need a good trading plan. You can’t go into battle without preparing your battle plan. In this case, you need a good trading plan that specifies what you want to trade, how much you’re willing to trade, and how long you’ll trade before you exit. Stick to this trading plan but adjust accordingly to experience and marketing conditions, and it will help you succeed in the long run.
You need to be smart with risk/reward. According to experts, the best trades should have the potential to earn you $3 for every $1 risked. This will give you enough legroom to commit mistakes while still making profits. It’s also very important to learn all about a trade before going into it, so you’ll know if it’s worth taking the risk.
You need to control your ego. A lot of traders fail not because they don’t know how to trade but because of their ego. When you trade in such a competitive market, you need to set aside your pride and absorb everything you can in terms of rules, strategies, and risk management. Remember, you can’t be too proud to learn how to trade based on principles and chart action.
Successful trading can be easy. You just need to establish these simple tips and live by them every time you trade. There are no hard-and-fast rules for being a successful trader, and there will be good and bad days. But if you continuously practise these habits, you’ll progressively sharpen your skills, and eventually, achieve success.
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