Whether its stocks, forex, cyrpto or indicies I am going to give you 5 methods, tips and tricks to improve your trading.
- Risk Management
- Setting rules and following them
- Market conditions
- Trade with others
- Knowing when to your money and when to stop
I will now break each one down for you guys to understand a bit more and how you can apply them these methods today, starting from the least important to the most important.
5. Knowing when to your money and when to stop – psycology
One of the most common mistakes in trading is the human psychology, the idea of greed and fear. Greed of thinking; ‘the trade will come back up, it did last time’, ‘its pushed so far maybe a little bit more’. or ‘i better take profit now just incase it did what happened last time’, ‘i better exit now incase it hits my SL’
The point is before every trade I always teach and say that you should already have a SL and TP in place, try your best not to move them (In some scenarios you do but thats when you’re more advanced). The point is when you have set something you should follow it and let it be, review the trade after and learn and develop.
Learn then earn.
Another method is knowing that trades sometimes sky rocket and pay you massively but this isn’t always the case, those odd times are great but don’t expect if everyday. If you have hit your target profit for the day then STOP.
If you have hit your set amount of risk then STOP.
Like I always say if you’re in a rush to make money you’re in a rush to be broke.
(Read more on this topic; HOW TO USE STOP LOSS AND TAKE PROFIT (SL & TP)
4. Trade with others
This is another important aspect as others, trading can be a very lonely game. There is so much smoke in the trading industry filled with glory winners, lambo owners and stupid fuckers lol. Sorry to be blunt but its my way of waking you up.
Trading with others will allow you to see the generic scenario that is happening, where people are struggling. The consistency, not only this but you will be able to bounce off of each other on ideas, development and grow together.
Better yet like our Live day trading room there are handful of traders that already know what they are doing and can help shed their experience to you for you to try implement in your ways.
(click here if you want to join and subscribe to our room)
3. Market conditions
Market conditions – one of the hardest things to hard and implement out of the 5 tips. Its something that takes alot of time and education. The best way for you to really start learning this is to start reading more on news websites. Understand whats going on in the market, working late and doing reviews with others or yourself and seeing what the overall picture looks like for the market. Whether its going higher for long term, in its reaction phase, any major AOA’s on the higher time frames.
Screen time is the best method to learn this.
2. Setting rules and following them
One of the stupidest things is we all set rules and don’t follow them, worst off we kick ourselves when we realised. I am one aswell also been stupid.
BUT we should learn from them, like my Uncle always said to me;
You are normal if you learn from your own mistakes.
You are smart if you learn from others mistakes.
You are stupid if you don’t learn at all.
Which one are you?
Set those rules, or if you have learnt from my course or another mentor and they have given you rules follow them.
Rules are there to help you not to harm you.
1. Risk Management
Right risk management! THE biggest subject in regards to trading hence why I put it number 1!
I even made a dedicated post for it click here to read more.
Risk management is something that always goes first in peoples trading. You should really have a set amount that you risk and stick to you.
Set amount that is risk for each day and stick to it.
Set amount that you should be your reward your RR (Risk to reward) ration and stick to it.
Like I explained, on the example of a RR 1:3 you only need to be right 33.33% of the time and you will still make money.
10 trades you loose 7 and win 3
Risk reward is 1:3
Account size is $100,000
Risk is 1% – $1000
Risk reward – $1000 : $3000
Losses – 7 x $1000 = $7000
Wins 3 x $3000 = $9000
$9000 (win) – $7000 (losses) – $2000 profit
So imagine if you took 10 trades a week set that as your rule THEN made minimum 3 wins a week $2000 a week. x4 would be $8000 a month, don’t know about you but thats more than enough to live off let alone have an additional income.
Vice versa for small amounts and larger.
$10,000 trading account, $100 per trade
$200 a week x4 = $800 a month more than enough as additional income.
My point is if you break it down it really isn’t that hard to make money in trading, the hardest part is keeping it, sticking to the rules and constantly developing and learning and re-investing.
Its like a business, you invest in the employees, marketing, R&D to market more and develop its the same with Trading you invest in courses to educate your brain, learn different aspects approaches and how you can improve.
Right hope you get the point now, if you enjoyed this post and learnt something from it please leave a comment and share to encourage me to write more of these for free.
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