today we gonna focus on what is the mindset of a winning trader. what does he think and what differentiates him from a looser based on his way of thinking.
We gonna check a non-exhaustive list of several quotes that may be interesting to know and remind. These quotes are all written on my notepad, I advice you to do the same: have a notepad with all the trading knowledge learn over the years.
at first ----------> Dont forget to put a like and follow me if you want more content
let's go !
1)Trade what you see: its important to not have bias on trading, technical analysis allow you to have an idea of where the price may be heading and allow you to make a quick decision based on it. Your bias will only make you more confuse and may make you miss plenty of opportunities (as well as leading you to ruin). When you are going to analyse the market, dont forget to let your emotions behind you.
2)Plan your trade and trade your plan: as simple as it sounds. just draw a chart and trade it, if you dont have a plan you dont have rules and if you dont have rules you wont win money.
3)Trend is your friend + dont fight the FED: setups that follow the trend have more probabilities to be winners, therefore its better to favor bullish setups when trend is bullish and bearish setups when trend is bearish . Trend reversal setups are pleasing( a good ego booster) but keep it exceptional. also the "don't fight the fed" part correspond to stock market, when you know there is economical measures like Q.E just follow the movement. dont expect to be the top shorter, you'll need a lot of luck.
4)Trading is 80% psychology and 20% technical analysis: you surely listened to that one somewhere, its very famous. The winning trader have adquired strong rules of psychology and a solid mindset(they respect it) that brought them to become winners. these rules make them confident and peasible, they feel safe when working because they know odds are at their side as long they respect the rules.
5)Buy low and sell high: Buy low, sell high is a strategy where you buy stocks or securities at a low price and sell them at a higher price. This strategy can be difficult as prices reflect emotions and psychology and are difficult to predict. Traders, thus, use other tactics, such as moving averages, the business cycle, and consumer sentiment to help decide on when to buy and sell.
6)Cut your losses, let run the profit: The basic idea behind this particular saying is to encourage traders to get out of losing positions quickly, but have the patience to stay in winning trades and resist the tendency to sell winning positions early. Assuming the trader follows a sound trading strategy that has an edge over time, following this rule allows profits to accumulate over time, while drawdowns are kept at a minimum – resulting in a much more enjoyable trading experience.
7)Patience is key: One of the best cardinal rules and day trading advice is to be patient. Patience is key, during the day, there may be many opportunities. It is best to wait for the right opportunity pursuant to your specific rules and trading plan. Sometimes you won't make any trade at all, that's why it's not always easy being patient. Most of the time you will find yourself in profitable trades as long as your patient and vigilante.
8)Good trading habits + good trading plan + good trading rules: i think its clear, there is no need for more explnation to this one
9)Set and forget: is whereby you open a position with a pre-defined stop loss, take profit and entry location, and once the trade is activated, you let it go with no trade management. This means you let the trade run until it hits your take profit, or your stop loss. Hence the name ‘set and forget‘. you have an entry, an SL and a target so just let the price fluctuate, it'll give you a result at the end (loss or profit) there is no need to interact since you already have the parameters.
10)Trading is a game of probabilities: know your probabilities by heart. every winning trade know very well how to play with probabilities in order to achieve his goal of becoming successful.
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Thats all, I wish you the best. Have a nice week !