Losing traders make up the largest majority of traders in the market at any given time and the numbers are shocking… Apparently it’s as high as 98% leaving the other 2% to clear up. Here are some tips to consider to turn your trading profits around if you find it’s all going a bit belly up.
- Don’t over trade, you don’t make money by trying to be busy in the markets; seasoned traders know the money is in the waiting.
- Taking profits to soon; let your profits run, don’t take a profit for the sake of it or because you heard some BS on the TV, remember trend trading is your simple secret weapon so let your profits run and run until a signal says otherwise.
- Taking losses to soon; price doesn’t go straight up or down so you have to be prepared to follow your rules without taking a loss at the first sign of red.
- Holding losses; admit when you’re wrong and cut your losses and move on.
- Trading for entertainment; you’re bored, lonely, angry, need to relax or whatever excuse you can find to convince yourself that you need to trade.
- No plan or discipline; Find what works for you and that’s it, don’t deviate from the path you decided on. Trend trading is a long term strategy, a marathon not a sprint. Rate your success over years not days.