Some of the Important lessons I learnt trading the markets for a living:
A thread ๐งต
(1/n)
A thread ๐งต
(1/n)
No free lunches: You want to trade big breakouts, you are going to face failed breakouts.
You want to trade pullbacks, many times stock won't pullback after breakout and keeps moving up.
(2/n)
You want to trade pullbacks, many times stock won't pullback after breakout and keeps moving up.
(2/n)
You want to capture a larger move, you have to be ready to risk some of the open profits.
You want to book everything, you lose the chance of making a larger profit. There is always a trade off.
(3/n)
You want to book everything, you lose the chance of making a larger profit. There is always a trade off.
(3/n)
Risk management: Risk management is not just deciding how much you risk per trade and keeping stop loss or hedging.
There are also unforeseen risks like broker going down, network outage, data feed not working, glitches from exchange end and what not.
(4/n)
There are also unforeseen risks like broker going down, network outage, data feed not working, glitches from exchange end and what not.
(4/n)
Make sure you think of as many as possible and have back ups in place for such contingencies.
(5/n)
(5/n)
Dull periods: There will always be dull periods where a trader will not make money/lose money. Keeping oneself sane during such periods and not screwing up majorly is important.
(6/n)
(6/n)
If you don't get through such periods, when the winds turn you won't be in the game to take benefit of it.
Remember: Growth in this game is not measured by eternally not making mistakes (we all mess up sometimes) but how often you mess up
AND
(7/n)
Remember: Growth in this game is not measured by eternally not making mistakes (we all mess up sometimes) but how often you mess up
AND
(7/n)
Remember that it is okay to screw up. Just don't screw up to such an extent that you cannot unscrew yourself from it.
(8/n)
(8/n)
Showing up everyday: Primary focus should be to show up everyday and be in peak performance state where we can execute our plans to the best of our abilities.
It is not about taking home a pot of money daily but how efficiently did we trade.
(9/n)
It is not about taking home a pot of money daily but how efficiently did we trade.
(9/n)
Life outside markets: It is very important to have a life outside markets; a hobby, group of friends and spending time with family.
This helps take much needed time off and we can trade efficiently.
(10/n)
This helps take much needed time off and we can trade efficiently.
(10/n)
Bridging the gap between thoughts and action:
Most traders know what they are supposed to do (take defined risk, keep expectations realistic, follow rules etc)
But issue is that traders cannot follow their thoughts and it sometimes seem there is no control on actions
(11/n)
Most traders know what they are supposed to do (take defined risk, keep expectations realistic, follow rules etc)
But issue is that traders cannot follow their thoughts and it sometimes seem there is no control on actions
(11/n)
Your main focus should be to bridge this gap between your thought process and actions.
(12/n)
(12/n)
If you found this tweet useful, re-tweet it and follow me @KillerTrader_ for more such tweets.
I share my live market updates on telegram:
t.me
#StockMarkets
I share my live market updates on telegram:
t.me
#StockMarkets
Loading suggestions...