|
1.
The turning point of when amateur traders turn into professional traders
is when they stop searching and hoping for the "next great technical
indicator" and start managing their risk on each trade.
2.
Good trading should be boring, like doing the same thing over and over
again. If there’s one thing I guarantee in trading, it’s that "thrill
seekers" or adrenaline junkies get their accounts grounded into tiny bits
and pieces.
3.
Always remember, trading is supposed to be a business. So treat it like
one by not letting your emotions get in the way, stick to your stop loss.
4.When
you open a trade, start looking for signs that you were wrong. If you see
them, then get out before your stop loss is executed.
5.
Trading is simple, but it isn’t easy. If you see yourself having a
future in this industry, forget about "hope" and stick to your stop loss.
6.
Don't open a trade just because it is cheap. The only reason to open a
position is when the underlying security looks set up to make a decent
move.
7.
You are buying and trading on the emotions of other traders, not the
actual stock. You have to be aware of the human psychology and emotions
that constitute trading.
8.
If you come into trading with the idea of making “big money overnight,”
you’re better wake up and smell the coffee. Most accounts have been blown
because of this “account killer” mindset.
9.
Beware of your number one enemy, yourself! If
you start to get too excited, beware! As excitement clouds your judgment,
it starts to increases your risk.
10.
Always be in control and aware of your own sea of emotions. Every
trader’s downfall will come from not being able to control your emotions.
If you are screaming at your computer screen, begging your stocks to move
in your favor, you have to stop and ask yourself, "Is this rational?" Ease
in. Ease out. Keep your stops. Don’t scream and shout.
Cheers &
Happy Trading!
Brian Lee
|
