Why You Want to Be a Trader – General Trading Approach and FAQs – Miscellaneous – February 6, 2024

IMPORTANT Please read and understand this before transacting.

1. Successful trading is based on probability. This means that you are relying on something that has gone before before it repeats itself.
2. Since no one can know the future, this carries its own inherent risks.
3. There is no 100% winning retail trading strategy. This is an illusion. Every trading system suffers losses or enters a period of decline. >>> This is normal <<
4. Successful trading requires accepting the fact that there will be losses. I repeat. There will be losses. Accept this and move on.
5. A trading system that works produces more financial gains than losses. It’s very simple.
6. Every loss brings emotional pain, and this is the hardest part of trading for people to accept. If you can’t accept this, you won’t succeed and you run a greater risk of entering into a cycle of revenge and trying to make amends, where your account will blow up. Be humble, receptive, test everything and set your risk profile to an acceptable level.
7. If you feel emotional pain when a trade is initiated or when you take a loss, then your risk profile is too high and you should increase your capital and lower your risk.
8. Backtesting Backtesting Backtesting can help you become familiar with the risks involved. It’s your money, so you need to understand all the risks.
9. Backtest and demo results may not be identical to actual results due to execution delays and delays. Please keep this in mind.
10. Always test new systems live with minimal risk, relying on your backtesting experience until you are comfortable with how the system behaves live.
11. Don’t risk your capital more than you can afford to lose. In certain situations, you may lose more than your broker deposit.
12. There is one more war in the world now. This has implications for global financial markets. Current financial markets are nothing like they were before the war and global pandemic. Keep in mind that the current market is the one you need to focus on. Financial markets are constantly changing.

Frequently Asked Questions

Don’t worry about the little things