Journey to become a profitable trader

Sharing my trading journey & trading lessons in becoming a profitable trader

I have just re-started my trading journey, after a long absence.

I realized that I am good at this, and can (and will) master it.

From my experience, to be a good trader, one needs to possess these qualities:

  1. A good positive surrounding and good inner self.
  2. Trading edge (the system that works for you)
  3. Risk management
  4. Money management

Firstly, trading should not be used as a boasting point. It should be an outlet of skill and enjoyment that makes money. One’s surrounding should also be peaceful, enabling the trader to study the market, plan, execute and then review the trades, in order to earn increasingly better profits.

Secondly, I read somewhere, that most traders know the entry and exit targets. Most however fail in having the edge (the stop loss placements, the knowing the market movements, etc.) that enable traders to profit.

I think, traders ought to:

  • have the entry and exit
  • stop loss placements, in consideration of good R:R
  • know know their chose market (I believe traders need to specialize in 1 focus for example some focus only on XJO, some focus only in buying dips and sell when it’s high, etc.) That way the traders will know know the specific market movements
  • discipline – discipline isn’t based on will power, restrained emotions, or ability to execute plans, because they on their own aren’t sufficient to make human (emotional) beings to be discipline. Discipline is ensured through a series of automated systems that enables traders to execute their plans. For example, have a strategy to circumvent itchy fingers – go out & run(exercise).
  • review review review review! bettering themselves – their trades, all the time.
  • ultimately, focus only in perfecting their trades, inevitably the money follows.

Risk management;

  • having a good capital is good. But that should not be the reason to feed onto a bad trade.
  • position sizing – my strategy is created to be foolproof so I cannot comment on position sizing. But common sense still rules, if the signals aren’t as perfect, less position or don’t enter at all. If the signals are so strong and even better, have additional brownie points – enter & double the position size!
  • SL should be respected, and if it’s still good, re-enter.

Money management;

  • have back up money for black swan events – this could be the gold keys to double/triple money,

Once a trader discovered their edge, master their emotions, risk and money management, they will become increasingly profitable traders. The process can take several months to several years. And what I learned, the best lesson is learned from learning others’ mistakes and developing a well proven path to be a profitable trader.

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