This is a non-technical blog that contains some facts and precious truths. These 5 tips could forever change your trading perspective in a better way. Let’s take a look at them:
1. Think about the risks. Before entering the trade, you should be aware that any trade could end up being negative one, regardless of how strong your setup is. So, don’t over-leverage your position size and risk only 1-2% of your account per trade. In that way you’ll be able to make rational decisions and trade without emotions.
There’s a great saying:”Winners always think about the risks while losers think only about the profits.”
2. Don’t overtrade. Many traders can’t understand that their profitability is not in a direct correlation with the frequency of their trading. If there is no good setup, “sitting on your hands” is a better choice than gambling and loosing the money with risky positions.
Every day is a working day, but not necessary a trading day. You should be selective. In EWF, you could expect to get 5 or more high probability swing setups every month.
3. Trade with the trend. You probably heard this one many times before. Never ever fight the trend. Trading against the trend won’t make you profitable in this business. Usually these trades have a bad risk -reward ratio, or on the other hand, if a risk-reward ratio is good, than most likely there’s a low probability of realization.
EWF keeps you on the right side of the market providing you with high probability setups. If you want to learn how to trade with the trend, click here
4. Trade without emotions. If you respect rules mentioned above, you should be able to trade without emotions. Professional traders don’t feel euphoria when they’re making money and they certainly don’t get frustrated when trade ends as breakeven or negative. With professional analysis and decent money management, you will win more than you lose and gradually increase your account. The worst thing that could happen to you is a few negative trades in a row, which shouldn’t hurt you. In Trading, like in any other business, there are risks, incomes and expenses. Negative positions are expenses and they are a regular part of this job.
5. Learn from professionals- Market Experts. This advice applies to any other business : invest in your knowledge and always learn from the best. Sometimes, market could be very cruel to the novice. Even long-time traders without proper education end up blowing their accounts. The responsibility for this can be assigned to the Brokers who usually poorly educate traders, teaching them some quick indicator strategies which don’t work. Proper education could save you a lot of money which you would otherwise leave to the market.
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