Things I wish I knew my first year of trading
I breakdown some common trading misconceptions and how I conquered them
1) There is no "best strategy"
Strategy is one relatively small part of trading success, most strategies can be profitable other variables such as discipline and emotional control will determine whether you see success.
2) Get comfortable losing
If you are comfortable losing (within the set rules/parameters of your strategy) it will make the aim of becoming more consistent much easier. Your next trade is less likely to be destroyed by PTSD of losing and have less clouded judgment.
3) More trades = More money = False
More time than not taking fewer trades (depending on your strategy and general frequency of trades) will mean you are likely to be more selective and thus make more money. Aim for quality over quantity.
4) Focus on controlling emotions
How I solved this was by journalling, evaluating where I was wrong or making any errors generally made it easier for me to put actions and steps into place to stop them from happening again.
5) Learning proper risk management
Simple enough, without this you will lose all of your money.
1) There is no "best strategy"
Strategy is one relatively small part of trading success, most strategies can be profitable other variables such as discipline and emotional control will determine whether you see success.
2) Get comfortable losing
If you are comfortable losing (within the set rules/parameters of your strategy) it will make the aim of becoming more consistent much easier. Your next trade is less likely to be destroyed by PTSD of losing and have less clouded judgment.
3) More trades = More money = False
More time than not taking fewer trades (depending on your strategy and general frequency of trades) will mean you are likely to be more selective and thus make more money. Aim for quality over quantity.
4) Focus on controlling emotions
How I solved this was by journalling, evaluating where I was wrong or making any errors generally made it easier for me to put actions and steps into place to stop them from happening again.
5) Learning proper risk management
Simple enough, without this you will lose all of your money.