Things you should consider in trading to make it as a career
Hello everyone:
6 points I like to share on what you should consider in trading to make it as a career.
1. Trading is not a get rich quick scheme
Contrary to what social media, scammers, fakers and fake trading gurus want you to believe, trading is NOT a get rich quick scheme.
Those who believe such usually end up over trading, over leverage, blow accounts and give up.
(Trading is actually a reasonable method to yield money return. It is how consistent traders make a return on their original investment/deposit with proper risk management, strategies and methods. )
2. Technical/Fundamental Analysis dont work all the time.
Trading ANY sort of strategy, method or style will always have a percentage of failure and losses.
Its probability, not right or wrong. The main goal in trading is to make sure you have proper risk management, good Risk:Reward ratio, and look for consistency, sustainability in the long run.
(Sometimes traders blame their strategies, method, style, mentor and other things due to their trades not working out.
Not trading strategies can yield 100% strike rate, if there is, there will not need any risk management, and anyone trader should get rich)
3.Limit your risk per trade
Proper risk management is super crucial to a trader’s success. Many traders often risk way more than their accounts can handle, after all what's 10%-20% of a $100 to many people ?
But would you risk 10-20% on a $100,000 account ? and lose $10,000-$20,000 in one trade ?
(Too many new traders deposit a small amount of money hoping it can double and double and double. But they often over risk, over leverage the account.
The result is it only take a few trades to totally blow the account up.)
4.Must use stop loss
It may have worked out for you a few times where you remove your SL, and the price reverses and you close with profits. But what if the price goes against you more and more?
Can you stay mentally sharp enough and continue to hold the trade when the losses pile up more and more ?
You more likely can not, which will end up resulting in a margin call and/or blow the account.
(In the past I had a trader who approached me and showed me his losses on OIL where he removed his SL and price continued to go against him.
IT has come to a point where he reaches margin call, and the broker actually open opposite positions to “hedge” his losses)
5. Don’t over analysis and combine multiple trading strategies, methods and style
Over analysis and complicating your charts may lead to confusion and is not necessarily efficient.
Most trading strategies do work on their own, but when combined with so many other strategies, it creates conflicts, contradiction and confusion for traders.
(Often traders combine too many random indicators, S/R, trendlines…etc all on one chart. It makes it hard to analyze, and have a bias of the direction of the market)
6.Always use a top-down analysis approach.
Multi-time frame analysis is key. Always start from the higher time frame to the lower time frame.
The higher the time frame the stronger and noticeable the price action it is. Understanding a higher time frame can give you a possible direction and bias.
While the lower time frame will be your confirmation and entry.
(Have seen many new traders jump onto the 1 min chart to trade. While there are successful scalpers with proper years of experiences,
good trading psychology and emotion, most newcomers will not be able to handle the stress and pressure from it. )
Don’t give up
