Posted by: joetradingplace | May 1, 2015

Road to success

Every trader I know has a dream of becoming consistent and be able to trade for income. But as we know, trading is not easy and it takes a long time to be a profitable trader. Some people think profitable trading is a few good months of profit…i am talking about profitability year in year out. Learning from your mistakes is a good part of developing as a trader. So every month end, make sure that you go over your trades, learn from your losing trades and figure out how you could have traded differently. Also learn from your winning trades and see where you could have maximised your profits. I hope some of you are using the trading journal i posted a few months ago. It is a very useful tool and when i started using it, my trading improved.

Another important aspect of trading is risking what you can afford to lose. A lot of traders talk about risking 1-2%, but i recommend new traders to risk as small as possible, so that you don’t blow your account. You hear of traders saying that you have to blow accounts to be successful, but i say yu don’t, as long as you risk very small, you can live to trade another day. I tell all my followers and friends to risk between 0.1-0.5%…imagine if you are risking 0.1%, you will have to lose 1000 trades for you to blow your account. This will take a long time, by that time you would have gained a lot of experience.

A lot of new traders want to leaner price action trading, but that doesn’t happen over night. It takes a couple of years to master price action trading…its more of an art than a science. Take your time to study charts, don’t just look at tick by tick, but look how price moves in relation to market structure. Use significant levels that can be seen by every trader…I am talking about yearly/monthly open price, high/low of the month/year etc. There are two small good books a recommend to learn price action and they are http://www.amazon.co.uk/Reading-Market-Tactics-Marketplace-Classics/dp/1592802621/ref=sr_1_2?s=books&ie=UTF8&qid=1430469001&sr=1-2&keywords=tape+reading and http://www.amazon.co.uk/Support-Resistance-Simplified-Cliff-Droke/dp/159280067X/ref=sr_1_3?s=books&ie=UTF8&qid=1430469429&sr=1-3&keywords=support+and+resistance.
Another good book is trend following by M Covel and Trading in the zone. I think these books are really good and you don’t need to be reading a lot of books. I have a lot of books i bought, but most of them were just useless and a worst of time. Its only these books above i found very useful to my development as a successful trader. Hope this help, if yu have questions drop them in the comments or email.

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