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The 3 VITAL aspects of trading any type of financial instrument (A THREAD
)
- STRATEGY
- MONEY MANAGEMENT
- TRADING PSYCHOLOGY
(1/9)
)- STRATEGY
- MONEY MANAGEMENT
- TRADING PSYCHOLOGY
(1/9)
STRATEGY
A detailed, step by step guide explaining your exact methods for entering and exiting a trade
It must be a strategy you can consistently carry out with no subjectivity
For this reason, I prefer technical analysis
over fundamental analysis
(2/9)
A detailed, step by step guide explaining your exact methods for entering and exiting a trade
It must be a strategy you can consistently carry out with no subjectivity
For this reason, I prefer technical analysis
over fundamental analysis (2/9)
MONEY MANAGEMENT
Without this, even the world's best strategy will not make you money.
This involves working out exactly how much % of your account you will risk per trade (using your stop-loss) and also how you will manage your money during the trade...
(3/9)
Without this, even the world's best strategy will not make you money.
This involves working out exactly how much % of your account you will risk per trade (using your stop-loss) and also how you will manage your money during the trade...
(3/9)
Do you need to bank some profit early and let the rest run?
Or do you need to cut your losses short?
You must have a pre-determined plan for ALL of this.
An idiot with a plan beats a genius without one every day.
(4/9)
Or do you need to cut your losses short?
You must have a pre-determined plan for ALL of this.
An idiot with a plan beats a genius without one every day.
(4/9)
TRADING PSYCHOLOGY
Like money management, this is an aspect which must be COMPLETELY trained before you are to put any real money into the markets.
Without this, your trading strategy means nothing.
Trillions of dollars are being traded daily...
(5/9)
Like money management, this is an aspect which must be COMPLETELY trained before you are to put any real money into the markets.
Without this, your trading strategy means nothing.
Trillions of dollars are being traded daily...
(5/9)
Someone who doesn't have the patience, discipline, and mindfulness to stick to their trading plan will get eaten up in the markets.
Demo-trade or trade using a very small amount of money first. Sense the emotions you feel...
(6/9)
Demo-trade or trade using a very small amount of money first. Sense the emotions you feel...
(6/9)
Now imagine you have thousands or millions in that account.
Do you want to be sweating every time you have to place a trade because your psychology is all over the place? No.
Do you want to panic every time you're losing money? No.
It's all in your power
(7/9)
Do you want to be sweating every time you have to place a trade because your psychology is all over the place? No.
Do you want to panic every time you're losing money? No.
It's all in your power
(7/9)
A must-see playlist on trading psychology for any type of trader out there
https://www.youtube.com/playlist?list=PLPqWQo6-TXfHvb2XDgU-WgFIubbo3gBVR
(8/9)
https://www.youtube.com/playlist?list=PLPqWQo6-TXfHvb2XDgU-WgFIubbo3gBVR
(8/9)
SUMMARY:
STRATEGY - determines how and why you will enter and exit a trade
MONEY MANAGEMENT - determines how much you will be buying, and how you will scale-out (if need be) 
Trading Psychology - the driver in the car
Thank you for reading
(9/9)
STRATEGY
- determines how and why you will enter and exit a trade MONEY MANAGEMENT
- determines how much you will be buying, and how you will scale-out (if need be) Trading Psychology
- the driver in the carThank you for reading
(9/9)
