Top 8 Rules of a Pro Trader
Hey traders,
Consistently profitable traders have a lot of things in common. Watching how they act and following their ideas & thoughts we can spot a lot of commonalities among them.
In this article, I have collected 8 trading habits that a trader should have to become successful.
1️⃣ - Continuous Learning 📚
The markets are infinitely deep in their nature.
Trading & constant monitoring of the market always unveil new, uncharted elements and things.
With 8 years of day trading, I can't help wondering how many new things I learn each and every day.
With continuous learning you evolve, you become better and it improves your trading performance & results.
2️⃣- Emotional Stability 🙏
The market is a wild beast who always wants to bite us.
And most of the time it manages to do that:
drawdowns, losing streaks...
Those who trade for at least 1 year know how unpredictable and unstable the market is.
A perfectly looking trading setup can easily turn into a big losing trade.
Of course, that is painful, of course with more and more losers, the anxiety will pursue us, the stress will overwhelm us.
Only by remaining stable and calm, you will manage to overcome the negative periods.
Learn to control your emotions, learn to take losses!
3️⃣ - Constant Practice 💪
Pro traders never stop, they always watch the charts, they always monitor the prices, and follow the market.
Trading requires constant TRADING.
Just spending one single week on a vacation without charts, you can not imagine how hard it is to return back.
The trading skills must be constantly maintained.
4️⃣ - Trade Journaling 📝
Pro trders always assess their past performance & results.
They track each and every trading position that they opened.
Both losing trades and winning trades require analysis and observations.
Only by studying the past results the trader can improve his trading performance and evolve. Only by identifying mistakes & peculiar commonalities, the trader learns to lose less than he makes.
5️⃣ - Anticipation of Different Outcomes 👁
Everything can happen in financial markets.
Pro trader always reasons in probabilities.
He knows that 100% chances do not exist.
Accepting the probabilities the trader (even while opening the trade) is always ready for completely different outcomes and accepts each and every move of the market.
6️⃣ - Flexibility & Adaptivity 🕺
The markets are always changing.
If you were trading before COVID crisis, I guess you feel how the reality among us shifted. With fundamental changes in our daily lives, the markets changed as well.
It is hard to say what exactly has altered though, however, we all can feel it.
In order to survive in a constantly changing environment, one should adapt . One should look for ways to be one step ahead.
To beat an evolving market, the traders should constantly polish their trading strategies, drop the things that don't work anymore, and adopt the new, reliable ones.
That is the only way to stay afloat.
7️⃣ - Selection of Right Markets 📈
The trader always knows what to trade and he always has a reason.
He admits that some financial instruments are appropriate for his trading style while some are completely not.
Pro trader does not wander around aimlessly from one market to another. He has a plan to follow and rules to rely on.
8️⃣ - Realistic Expectations ⭐️
Many newbie traders drop trading just because of wrong expectations.
The desire to get rich quick, to catch 20/1 risk to reward trades without substantial losses is playing a dirty trick with them.
The true trader is not greedy, in contrast, he is humble and the only thing that he wants is simply to win more than he loses and make that amount sufficient enough to have a good living.
Adapting these 8 habits, you will see dramatic improvements in your trading.
And even though most of them require a substantial effort and many years of practicing, trust me, it is worth it and it will help you in your daily life as well.
Would you add some other habits to this list?🤓
Let me know in a comment section.
Let me know, traders, what do you want to learn in the next educational post?
Profitabletrader
Month end Trade for EUR/JPYHi Traders,
As we are now on the last day of the month, We can expect some pullbacks based on the Monthly Time-frame for some instruments. EURJPY Has found rejection 3 times at 144.000 and even though we are still in a bull market long-term, we can still find some shorting opportunities based on the lower time-frames.
Price has managed to break multiple support levels on its way down and now with the last break of support being a nice bearish candle, I would love to see price give a retracement back to the broken structure priced at 142.500.
My entry for this will be simple as I will enter with a pending order at 142.5 and then add more if Price rejects and creates a lower high. If Price pushes up and Breaks resistance I will be out of this trade.
Trade safe and Remain Patient.
Renaldo Philander.
USDCAD Buy after the breakHi Traders,
USD/CAD has caught my attention once again. This time against my Original bias a few weeks ago. Looking at the Dollar we see that it has been strengthening across most major pairs. USDCAD has now created a false break out and I see opportunities to find a Long position.
If we look left, it may seem like Price is currently retesting a previous level of support which has now become resistance, This could result in the level (1.29150) forcing Price lower. I am personally not interested in this play to the downside as this has a low probability.
Price Is currently in an uptrend on all higher timeframes, Price has also created the False breakout and then started pushing to the upside. Now we have a barrier that needs to be taken out before I will be looking at entering.
I will be using the simple Break and Retest method to enter this trade. No break, No entry, If price flies after a break of structure with no retest, I also will not enter.
Be safe and remain Patient.
Renaldo Philander.
Generating SRC ProfitsLet’s talk about SRC profits. We’ll talk about what they are, why you must have them, and how to generate them.
So let’s get started.
What are SRC Profits?
Lately, I'm seeing all of these YouTube videos showing claims like this where someone said, “I made $1,088 in profits day trading.”
Or someone claiming, “I made $1,253 in profits in three minutes.”
Wow, look at this: “32,625 pounds in only 24 hours”
And you know what? I believe that all these guys actually did these trades.
But here’s the deal when you trade, you’re going to have trades that just work out perfectly. Yes, there will be trades where you make a lot of money.
And for me, the question always is, are these SRC profits?
So let’s talk about this here, because if you want to trade for a living, you must be able to generate SRC profits.
So let’s take a few minutes and talk about this.
S – Systematic
So here is what SRC profits are.
First, it’s an acronym and the S stands for systematic.
Now, I don’t know about you, but I want to make my profits in a systematic way.
Yes, of course, you can make money trading Tesla if you’re catching it at the right time.
But you see, how exactly do you decide when to enter, and can you generate these profits again?
You know me, I like to trade what I see and not what I think. I keep a special mug on my desk that reminds me of this.
See, that’s why I use indicators. That’s why I have a trading strategy.
Having a systematic way means that we have a trading strategy that tells me exactly what to trade, when to enter, and exactly when to exit.
Sometimes you exit with a profit and sometimes, you do exit with a loss. Losses are part of our business as a trader.
In short, I have a system. I love to trade based on rules and not based on my gut feeling, because whenever I traded based on what I thought, it only worked for a little bit.
When I switched to trading what I see based on science, based on probabilities, based on rules, that’s when my trading turned around.
R – Repeatable
Let’s move on and let’s talk about the second point, the 2nd letter in SRC profits.
So the second point here is repeatable. Without a system, it will be difficult to repeat the profits. Now, think about it this way.
Let’s talk about Tesla . Let’s say that you caught Tesla when they announced a stock split on August 11th.
And let’s say during this run you made 30% in a matter of a few days, or maybe you traded options and you made 1,000% in a few days.
Can you do it again? Well, you see, if you rely on the next stock split then you might have to wait a few years.
Think about it this way, is it better to generate $10,000 on a single trade, or is it better to know how to make $500 every single week?
For me, I’d rather trade a system that’s generating $500 per week consistently than relying on the windfall profits.
Yes, these windfall profits will happen in your trading career we’ve just talked about it. And it’s nice when it happens, but I wouldn’t rely on it.
If you can generate $500 every week times 52 weeks, that’s $26,000. For me, that is better than being able to generate these windfall profits.
This brings me to the next point.
C – Consistent Profit
The next one is consistent profit. I want to make sure that I’m getting consistent profits.
Let me give you an example here. Would you rather have an equity curve like a EKG machine? Or maybe a nice steady line gradually growing from left to right ;)
What is an equity curve?
An equity curve is charting your account, of how your account is going. Now, I don’t know about you, but I wouldn’t want my equity curve to be like a roller coaster. Even if this roller coaster would make me more money I wouldn’t do it.
I would rather make slightly less money but still have my hair instead of pulling it out with that equity.
I’m not a nail biter but if I had this equity curve, this roller coaster, I would probably bite off all my nails. You know that there’s some traders who are doing exactly this.
Now that you know what SRC profits are and why you need them if you want to trade for a living, let’s move on and let’s talk about how you generate these profits.
3 Things You Need To Generate SRC Profits – Number 1
So the first thing that you need is that you need to have a trading strategy or trading strategies.
The strategies that I use are based on indicators and probabilities.
You see, I know exactly what to trade, I know exactly when to enter, I know exactly when to exit. I know my risk, I know my potential profit, and I know my odds of realizing that profit or loss.
If you don’t know my trading strategies yet, let me briefly mention them to you.
So my bread and butter strategy is the PowerX Strategy, and I have written a book about this.
During the pandemic I was trading a strategy called Theta Kings. This was perfect as the markets were crashing, along with the PowerX Strategy.
Now, another trading strategy that I’m trading here right now is a trading strategy called The Wheel. Anyhow, let’s move on.
2. To generate SRC profits you need to have tools
What is the second thing that you need to generate these SRC profits? Well, I am using tools that make my life easier.
You see, I know my odds. I know my probabilities, I know what to expect and I couldn’t do all these calculations in my head.
This is why I’m using tools like the PowerX Optimizer that helps me to find the best stocks and options to trade.
The PowerX Optimizer shows me for any given stock the signal, the position size, how much I should trade, how much money I can potentially make, and how long I’m in a trade.
All of this is important to me so this is why I love to have tools.
And for The Wheel strategy, for example, I use the wheel income calculator.
I've built a calculator that I’m using for picking the best stocks and options for The Wheel.
You see, I need to make sure that I’m getting the very best trades for my trading. I personally would never trade without the right tools. It’s like trying to compete in a Formula One race with a Toyota Prius.
I mean, nothing against a Prius, but you won’t win a Formula One race with it. And when trading your trading against some of the smartest minds in the world. Don’t bring a knife to a gunfight, have the right tools.
3. You need to have the right mindset
So finally, number three, what is the third thing that you need here? It is the right mindset.
What do I mean by this? You see, when trading there will be losses and you need to know how to limit your loss because otherwise these losses will be devastating.
Who knows what I’m talking about? You see, you need to know how to control your risk. Take care of your losses. The winners, they can take care of themselves.
Summary
Now, here’s something to remember that is super, super important. Trading is a marathon, not a sprint.
So super important and here’s why.
Good for you if you made a $1,088 in profits in day trading, or if you made $1,253 profits in three minutes. And you know what? Good for you if you made $32,625 during the coronavirus in 24 hours.
But let me ask you this, how much money did you lose before that? How much money did you lose right after you made these profits? Did you give it right back?
You see, I see too many traders being blinded by these windfall profits, by these, “Hey, look at me. Look at what I did” stories and they don’t see the full story.
This is why I’m doing this here to show you the full story.
When traders don’t see this full story, when they just see this “look at me” stuff, they start chasing these dreams and they lose a lot of money along the way.
You see, for me personally, I prefer SRC profits. Trading is a marathon, not a sprint.
If you enjoyed this article, feel free to leave a comment below and share it with anyone you think may find this helpful.
Getting Pounded - Reverse cowgirl!!! GBPJPYSo everyone and their mothers are having it in for GBP right now, right?
So, let's seperate from the herd of sheep, and break out for a nice reversal here. Think of it like the best manga porn you have ever seen. You think it's finished, but oh no! It keeps on going!
I'm recommending to my clients to Call this sucker for end of day, end of week and end of month from here.
#bitchbetterhavemymoney
Check out my coloured crayon lines to see where I entered in a majority of client liquidity.
www.STBinary.com - Get your ass to the Street!