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Confessions of a Trader

JasonLRE

New Member
Many years of trading career are condensed in this article

Summary: For so many years, I have always insisted on doing one thing, that is, every time I hear useful trading experience and advice, or get any lessons, or I have feelings about trading, I will record these.


For so many years, I have always insisted on doing one thing, that is, every time I hear useful trading experience and advice, or learn any lessons, or I have feelings about trading, I will record these. Now I have written a small book. I am willing to share with you the wisdom and experience gained over the years without any reservations or deletions. These experiences are not only from the trading business, my previous gambling experience also contributed an important part. Of course, I hope that everyone will look at the following with an objective attitude. After all, everyone sees things from a different perspective.

1. Generally, if your goal is less than 5 points, then commissions and spreads can destroy your account.
2. You must find a way to relieve stress. You can exercise, paint, or even drink, as long as it helps you.
3. If you can find a good teacher, everything will get twice the result with half the effort.
4. Your trading mode must suit your personality and living habits, otherwise, you will never be able to trade.
5. Meditation is terrible. It doesn't help me at all.
6. Do not trade more than 4 hours a day, but you must be very focused during these 4 hours of trading.
7. Excessive trading is self-defeating.
8. If after missing a market volatility, you can still be at ease, then profitability must not be difficult for you.
9. Don't trade news? This makes me simply unable to understand. You know, the liquidity during the news period is very good, and market sentiment can always push the price to a trend. Observe carefully, and when the market becomes clear, seize the opportunity to enter.
10. Wait, wait until the price forms a pattern, then enter the market and use this pattern to create profit.
11. Don't replace the system frequently, adjust the existing system to adapt it to your needs.
12. Don't overuse leverage.
13. That's right, it is possible to grow a small account to a super large account by trading. However, don't expect this to happen overnight, and don't expect to achieve this goal in the first 5 years of the transaction.
14. Some people will be able to make a profit soon, some will be slower, but there are also many who will never be able to make a profit.
15. The risk of every transaction is actually volatility. This volatility is generated in the process of your trading strategy and psychology against capital fluctuations.
16. Fully understand why you are trading, what your goals are, and whether your trading business is suitable for you.
17. Day trading is not simpler than swing trading, and vice versa. What they need are different skills, different abilities and different preparations for trading.
18. Trust your instincts. Do you think this is a great opportunity? Then enter the market. Still hesitate? Wait then.
19. There is no gain without paying. Simulated trading is good, but it should not be used for too long. Open a micro account and invest a small amount of money, you have to get used to losing money first. Because to become a trader, you will lose more in the future. This is part of the rules of the game. All you have to do is make more profits than losses.
20. It is helpful to listen to a concert while trading, of course it depends on you. If I listen to the best music while driving, I will subconsciously step on the accelerator to accelerate. The same is true when trading.
21. Record the transaction, and then continue to reflect, reflect, and reflect.
22. Try to improve your psychological mood, but don't underestimate the power of knowledge. Panic usually stems from ignorance. Work harder and learn more to make yourself more confident. Then most psychological disturbances will become invisible.
23. I said: Don't replace the system frequently. But in the first 1 or 2 years of trading, it is best to try everything, such as different markets, different strategies, and different types of transactions. If you don’t know anything, how do you choose the one that suits you best? Finally, make a wise choice and stick to it until you succeed.
24. Just staying in front of the computer does not help the transaction. The same sentence: introspect, introspect! You need to establish an effective feedback loop, otherwise you will just keep repeating similar mistakes. You should really learn something in trading.
25. You don't need a high IQ to be a trader. The most powerful traders I know all have "simple" thinking: they only do efficient work, they abandon themselves, and they ignore the meaningless things.
26. Don't use money as the target of the transaction. You should pay more attention to the process.
27. Do not stare at your own profit and loss during the transaction, otherwise you will only trade according to the profit and loss. Before and after the transaction, the funds in the account are yours. But when trading, the funds in the account are your weapons. In order to get more, you must first use these weapons.
28. If you can only read two trading books, then these two books should be Marty Schwartz's "Trading Champion" and Peter Brandt's "Professional Commodity Trader's Diary."
29. Trading with the trend is actually no simpler than trading against the trend. Homeopathic trading is the last thing I learned. Almost every trader I know has experienced a low point in homeopathic trading.
30. If you want to spend money to learn something, then spend your money on investigative work. It is entirely possible to identify scammers from traders. If something sounds too good, then you better stay away from it.
31. At the end of the day, don't forget to be grateful. You know, the job of trading provides you with the opportunity to make money comfortably at home. How many people can have such a comfortable job?
32. Full-time trading sounds great, but you will soon discover that full-time trading can make social life a nightmare. You need to maintain a balance between work and life.
33. Do some mental activities outside of trading. Also, don't eat some fast food like McDonald's every day. Seriously, you may be killed by it. Just pay attention to transactions every day, never read, do not exercise, eat unhealthy, or do other activities, your mind will be rigid.
34. Some social platforms are indeed a way for you to learn more about trading, and you can also find other traders or mentors on these platforms.
35. Many online videos also have great content. But you need to filter out which ones are really useful.
36. Don't get me wrong, trading is more professional gambling. Want to become a professional gambler? You have to make up your mind.
37. In the trading business, determining the must-dos before the transaction will become the key to the transaction. You must take the time to create a pre-trade preparation process.
38. Learn the basics and classic price models. These patterns may take a week to learn, but you will benefit from them in the years to come.
39. Don't expect yourself to seize the high and low prices. Being able to enter the market during price fluctuations, your trading results can gradually improve.
40. Believe in your own abilities and trading strategies, otherwise it will be difficult for you to succeed.
 
In trading, emotions are very often leading to mistakes, so being able to control your emotions and stay disciplined can increase your chances of long-term success. The trader should learn how to overcome their own emotions. There are many ways to overcome your useless prejudices and emotions. I always meditate before trading. My broker Eurotrader give me best tips to control my emotion.
 
If you do emotional trading, you have to face more losses. It is not possible to make a profit by trading for a long time without controlling the emotions. So every trader should trade by controlling their emotions first. It is less likely to be a loser. Everyone's emotions work as human beings, but if you want to maintain those emotions, you should do regular meditation. Because meditation helps a trader to keep a positive mindset.
 

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