Steps to Becoming a Profitable Trader

25 Nis 2023

This is a roadmap to becoming a profitable trader. Follow these steps to avoid wasting time and bouncing around from idea to idea. We start with a basic strategy idea we like, then build off it. We MAKE it profitable by following the steps outlined.

1. Focus on One Idea or Strategy
Focus on one specific idea.

An idea is not “price action” or “technical analysis”. That is too broad.

But you could start with the idea of day trading an 8 and 21-period moving average crossover.

Or MACD signal crossovers on a 1-minute chart.

Or the rounded top or bottom or pattern, or triangles, or Keltner channel bounces off the center line in strong trends.

Basically, you need an idea and a time frame (1-minute chart, daily chart, etc).

2. Define the Strategy
Since you have your idea, you already know the basic concept of the strategy. If you don’t have a strategy yet, that’s where a bit of research comes in: finding something you like the idea of. There are loads of free strategy articles on this site, in the courses offered, and from other sources such as books, Youtube, etc.

Whatever strategy you decide on, it needs to include these key components:

A trade setup. The trade setup is what needs to happen for us to even consider a trade. It could be a specific chart pattern, moving average crossover, price action signal, etc.

Where, when, and why we enter
A trade trigger is a precise event that tells us to get into the trade. When the “trigger” event occurs, it turns a possible trade setup into an actual trade.
Where, when, and why we exit profitable trades
Where, when, and why we exit losing trades
If and how we trail a stop loss.

3. Polish Your Strategy
Keep practicing. Keep improving your strategy.
Try that on different markets, under different circumstances.
Make it better and better till it starts making money.

Keep it simple and focused on one trading idea.
Get better and better at that idea. Keep refining and building your confidence in the method.
We gain confidence by seeing something work and being able to implement it. And that’s what all these steps are about.

Please, like this post and subscribe to our tradingview page!👍