The four truths of a trader
1. Anything can happen.
2. You dont need to know whats going to happen next to make money.
3. Having an edge over the market is defined as having more wins than losses.
4. Every moment in the market is unique.
There are four levels of traders
1. The unsuccessful trader- they cannot face their failures due to irrational beliefs that it makes them less deserving than others. They dedicate no time or effort into learning market metrics. Never DD. Piggybacks on other traders.
2. The regular trader- Learns minimal metrics, RSI’s, price actions, or resistance and support. They try to make sense out of nonsense. See correlations that dont exist. Eager to enter and exit a trade. Holding is seldom used or learned.
3. Elite Trader- know what they are doing. Make the safest investments. Patient. Loses money on trades by doing to much and over complicating them.
4. The Holy Grail Trader- has zero greed. High morals. Self Respect. Makes trades using wisdom and experience. Knows all the reasons to invest in the market and all the reasons not to invest. Makes most of their money on high risk, high reward trades.
A traders everyday checklist
1. I will objectively identify my advantages.
2. I will predefine the risk of every trade.
3. I will accept the risk i am taking.
4. I will act with no hesitation.
5. I will pay myself as I profit.
6. I will monitor my errors.
7. I will never violate these principles.
The market is manipulated using price movements to exploit an emotional decision so traders will make mistakes. Enter a trade only when you have planned the entry and the exit prices with a stop loss. A trading edge is being able to predict the unpredictable. No one has access to all market factors that affect a trade so dont expect anyone to be able to predict with any degree of accuracy what will happen next. Investing is not about right or wrong but trying to get it as close as possible to right. Trading can be a very painful process so never add to anyone else’s pain. You are here to protect your capital. Grow your capital. And to learn from each trade then improve on it. Have a nice day! Hope you get Rich!