In this article we would try to explain the basic principles of being a good trader.
First of all – focus on trading process, not on the amount money earned.
It is not some profound knowledge that making money on the market is a result of successfully trading them, but let’s look deeper and find our just where and when most traders do completely wrong.
The problem of many with small accounts is that they come to the market with a goal of making profit, as they “need” as they’ve put all their spare money into a trading account and they really want to get “filthy rich”. You know these people wearing pink glasses, that wish to quit their jobs, get rich quickly and buy a freaking yacht and red Tesla. Unfortunately trading on the market due to “need” results in a trader focusing most of his thoughts on making more and more money, 100-200-300% profits and do not pay attention to risk management and right trading strategies, getting experience and profound knowledge of the market.
Good trader would not would not focus on getting lots and lots of money extremely quickly. It can not happen in case you manage your risks properly.
Instead, good manager should be focusing on becoming an experiensed trader, not on making some quick cash. If you truly know how to trade on the market successfully, the money flow to you like a stream, filling your bucket more an more over time. You truly need to focus on the trading not on the money if you want to have a chance at keeping your emotions at bay and obtaining consistent trading success as a result.
Always trade your account as if it has 1 million dollars.
In case you had to trade a million dollar account, you wont be opening positions left and right. You would have one or two nice positions per month getting nice money from them, not risking to lose the whole thing. And that would be consistent!
You always need to think about your current trading account as a million dollar account, because the principles that lead to consistently successful trading are the same for everyone. Trader that acts like it is urgent to make a lot of money really fast is bound to lose some. Unfortunately not risking at all wont be getting you anywhere either. It is a very narrow pass and, just so you know, it is fine to slip from it sometimes. It is what makes your experience. But overall you should have a slow and coldly calculated approach to your trading strategy. Never be too emotional.
Having a 1 million trading account, you would disregard all fake and unreliable signals as you need only 2-3 good positions to make it worth.
You need to think before you act, because being rush only cause you to over-trade, over-leverage and lose your money consistently.
The sole reason why many traders lose their money is them not seeing the forest for the trees. They feel the temptation and follow it. As a result they over-leverage the accounts, because they do not see or do not want to see the bigger picture.
There is also other side of the coin. Many traders also get caught up in trying to analyze every piece of news data and all of the forex indicators they can get their hands on. Using unnecessary instruments and trying to “unveil the secret” clouds traders vision as much as adrenalin and greed.