Know your risks before entering a trade. When you know the risks, you can size appropriately based off of your risk point so that losses won’t be too high if the trade goes wrong.
Never think that it’s “Up too much” or “Can’t go lower” because it can. It is okay if the market makes a move that doesn’t make any sense. Don’t hold on to losers.
Don’t be afraid to lose. It’s a part of trading, there’s no avoiding it. As long as you control your losses by sticking to your plan, you have nothing to be afraid of.
Not all losses are a result of doing something wrong. No setup is going to work 100% of the time. Just stick to your plan and your stop losses and control the loss.
Find your area. When you’re starting, don’t try to trade everything that moves, focus on one area, master it, then slowly branch out from there.
Track your trades. By tracking your trades, you can get an idea of where you succeed and where you fail. Once you identify your successful areas, focus there!
Early on your way you probably will have to experiment a bit with different strategies, and most won’t work. You will take some losses, but you will learn a lot and this will help find the direction of your success.
Mistakes are the best learning tool. Don’t ignore them, don’t run from them, embrace them. They will help guide you to improvement.
Plan your trades around key chart points, not your profit/loss, don’t let it influence your decisions. Trading should be made according to chart and a plan.
Never stop learning.
We hope you enjoyed reading these useful tips by the millionaire traders.