I start this blog because I want to collect my knowledge on the market and on trading. I do this because I want to be a consistently successful trader. I tried several trading methods and styles and realized that these are the requirements for successful trading:
1. Trading psychology.
2. Money management.
3. Trading edge.
Trading psychology means we can wait patiently for the good setups and we do not trade when there is no setup. It means if we win or lose, that does not alter our mentality and we can stay calm. It means if we expect something to happen and it does not happen, we can accept it and move to the next setup. It means that we accept that the market is stronger than us and we cannot beat the market. It means a solid self-esteem in our trading ability that we can make money with trading. It means we know that our psychology is designed to survive and this is counterintuitive in the trading but we can control ourselves and we can make money. If we want to make money, we need to overcome our weaknesses instead of beating the market.
Money management means we know how much money we can risk. It means we know when we can and should increase or decrease our position size to gain the most profit.
Trading edge means we can use the trading tools to spot the high probability low risk setups. It means we can find situations where the market is one sided and the probability is high that it will go in one direction. If we understand how the market works, it is easy to spot these setups.
1. Trading psychology.
2. Money management.
3. Trading edge.
Trading psychology means we can wait patiently for the good setups and we do not trade when there is no setup. It means if we win or lose, that does not alter our mentality and we can stay calm. It means if we expect something to happen and it does not happen, we can accept it and move to the next setup. It means that we accept that the market is stronger than us and we cannot beat the market. It means a solid self-esteem in our trading ability that we can make money with trading. It means we know that our psychology is designed to survive and this is counterintuitive in the trading but we can control ourselves and we can make money. If we want to make money, we need to overcome our weaknesses instead of beating the market.
Money management means we know how much money we can risk. It means we know when we can and should increase or decrease our position size to gain the most profit.
Trading edge means we can use the trading tools to spot the high probability low risk setups. It means we can find situations where the market is one sided and the probability is high that it will go in one direction. If we understand how the market works, it is easy to spot these setups.
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