I hope you already understand the importance of having goals in life. So, I won’t start quoting Tony Robbins for you, but I will mention some specifics that help you set realistic goals to help your trading.
Ok. Seriously now.
Keep a trading journal
Every time you open and close a position, you must make an entry in your journal. Note down the criteria used to enter and exit the trade as well as any observations made along the way. When you write it down, not only are you creating an invaluable resource for you to measure and track your progress, but you’re training your brain to think mechanically, which is the most important part of trading.
Never set a growth goal!
I often see new traders targeting a set number of pips per day, or a certain percentage return per month, however, You can’t take more than the market will give you. Sometimes the best trading decision you make is waiting. Setting yourself a defined growth goal will force you to trade in unfavourable conditions.
You are in total control of your success
This leads on from the previous point – You can’t control the market. However, you can control how you react to it. If you trade the strategy correctly and record each decision, then you’ve succeeded. No strategy will make money all the time; it’s simply the nature of the markets and why I don’t suggest you tie your goals to your short-term performance. However, if you stay true to a winning strategy and don’t make emotional decisions, the profits will come.
Before you start anything, you need to understand the intended destination and have a clear path in your mind on how to get there. Things happen, your plan will change and that’s ok. But you need that initial road map if you stand any chance of succeeding.
To quote one of my most loathed clichés “If you fail to plan, you plan to fail”.
So you want to live the dream? Trade full-time, in a pool or on the beach, from anywhere in the world.
The desire for freedom and financial independence is why many of us start trading.
How wonderful it would be to tell your overbearing boss to sod off, sack the annoying client who calls you at 8 pm on a Sunday and say sayonara to that moronic trainee who won’t get their head out of their phone.
Just you, a laptop, and the charts.
Now that you’ve peered over the fence at my luscious green grass, let me educate you on what it’s really like (while I relax on my sun lounge, sipping an ice tea). There are thousands of us around the world right now. Trading for a living and making a real difference to our financial wellbeing and the lives of our family through the rewards and flexibility trading provides.
It is possible. You can trade full time and quit your day job. But it ain’t always easy…. Here’s how you do it.
It might sound obvious, but I know traders who took the plunge in the expectation that dedicating full-time effort would result in profitability. Don’t do this.
Build a profitable track record of 12+ months (preferably longer). Start trading as though your life depended on it today, and if you can make money over a 12 month period without a major error/loss, you might be ready.
Keep in mind that you’ll likely be tempting to take unnecessary risks and overexpose your account because you have your job to fall back on. But remember, as traders we’re always one poor decision away from disaster. Stick to your strategy, cut your losers and live to fight another day.
Don’t hold losing trades for more than 3 days. “The elements of good trading are (1) cutting losses, (2) cutting losses, and (3) cutting losses. If you can follow these three rules, you may have a chance.” – Ed Seykota
18 20395 days ago
My 5 tips to help you trade:
1. Learn how to read the fundamental drivers of the market and can take a view on the long-term future direction of a currency pair. Important! Because if you’re wrong, the consequences will likely be disastrous.
2.Don’t get greedy. If the market moves against you, start trading smaller position sizes. When your trades move into profit, close them as soon as possible. 5-10 pips is plenty.
3.Get a large account and another form of income. Sorry… I know this isn’t what you want to hear, but if you’re going to hold trades for months in a negative position, you need to be able to pay the bills while you wait for the market to turn around.
4. Find a trading mentor/partner. I spend most of my waking moments in contact with a mentor, a supposed former hedge fund guru that trades a near identical style of small, frequent profits and long term losing trades.
5. Find a partner that lets you do whatever you want. Charlotte, my girlfriend, let’s me get away with murder. During market hours I'm completely disconnected from everything aside from the market.