Develop a solid trading strategy based on candlestick patterns and supply and demand, and focus on consistently extracting money from the market.
Implement positive affirmations, visualizations, and take small risks to maintain a positive mindset and reduce emotional attachment to trades.
Manage trades by taking partial profits at predetermined levels and establish a risk management plan to protect against excessive drawdowns.
Deep dives
Extracting consistent profits from the market
The key to success in trading is to gain confidence and consistency in extracting money from the market. Focus on developing a solid strategy and understanding the basics of candlestick patterns and supply and demand. Take the time to build a track record and show consistent gains before increasing your trading capital. Gradually build your trading account and avoid taking excessive risks. Remember, trading is a long-term game, so be patient and avoid rushing the process.
The power of the right mindset
Developing the right mindset is essential for successful trading. Implementing positive affirmations and visualizations, such as those found in the book 'The Secret,' can contribute to a positive mindset and help you stay focused and motivated. Taking small risks, such as risking 0.25% to 0.5% per trade, can help reduce emotional attachment to trades and minimize the psychological impact of losses.
Managing trades and risk
When managing trades, focus on taking partial profits at predetermined levels, based on price action and key zones. This helps secure profits and reduces the risk of losing trades turning into losers. It is also recommended to establish a risk management plan that limits risk to 1% to 2% per trade. This approach ensures that no single trade has a significant impact on your overall trading account and helps protect against excessive drawdowns.
Handling major news events
When major news events are scheduled, it is often best to sit out and observe the market before and during the event. After the event, analyze how the market has interpreted the news and how it has impacted the trend. This can provide valuable insights for establishing new trends and trading opportunities. Avoid trading ahead of major news events and allow the markets to settle before making any trading decisions.
Advice for traders entering the market
For those starting out in trading, it is crucial to focus on gaining confidence and consistently extracting money from the market. Be patient and avoid rushing the process, as trading is a long-term journey. Gradually build your trading account and allocate a portion of your income to it once you have proven consistency. Develop a solid strategy and understand the fundamentals and technicals that work for you. Remember, your journey is unique, so focus on your own progress and avoid comparing yourself to others.
