Important things I learned about trading this year!

Its just a matter of days that year 2019 will end and we will move on to the new year with lots of hope(again) in our trading. Year 2019 is not that a good trading year for me but I learned a few important things that can help me become a better trader in 2020.

Here are the things I learned:

1. Commitment - When you decide to be a trader make sure that you can commit your time 100% during trading, meaning you have to focus your mind in monitoring your chart looking for trade opportunities. Choose a time frame that you can have the time to see your chart at every candle close.Missing a few trade setups will definitely alter the over all results of your trading. If you cannot focus on smaller time frames then shift to higher time frames.
2. Discipline - Again I have to give emphasis on this one because so many traders seems to ignore this word. Their is no way that you can have  lifelong success in trading if you cannot be discipline all the time during trading. Market can really give trader a lot of psychological pressures and if you cannot endure it you will always end up being indiscipline.
3. Good Strategy - This is one of the pillar of becoming successful trader, that is why it is important to chose or create a good strategy to use in your trading, something that will fit best to your character as a trader. But what is good strategy means in trading, many traders may have different ideas, but for me a good strategy simply means that it produces profits over time, meaning its something that can provide constant profits in years to come, not just in a few months. Avoid using grid, martingale, huge or no stop loss strategies, this kind of trading strategies will not give you lifelong success in trading. Its better to learn cutting your loses small.

Always remember its the loses that hurts not the missed opportunities!

I wish you and your family a merry X'Mas and a profitable trading year in 2020!

What is Good and Bad Strategy in Trading?

Hi, everyone I hope everyone is fine, today I want to discuss a very important aspect in one's trading, and that is all about trading strategy. We all know that a good trading strategy will propel us to success and a bad strategy will make us a loser.

Generally speaking a good strategy if followed religiously it will give us an upward equity curve while a bad strategy will give us an downward spiral or a roller coaster ride. Knowing whether a strategy is good or bad is not really complicated we just have to open our mind in order to realize it.

First you need to know the RR ratio of a particular strategy, on the average it should not go below 1:1 the higher the better, another thing is that the winning rate must be at least above 50% again the higher the better(55% to 70% is good). If your trading is within this bound and you consistently follow it then perhaps your on the good side of your trading and will keep your account intact in years to come, that's for sure.

On the other hand a bad strategy is the exact opposite of everything I mentioned above but a bad strategy can disguise as a good strategy at the start that is why so many traders fall to this trap and follow the wrong way. There are strategies or traders that has very high winning rate(as high as 95%) at the start but if you look on their RR it is really bad. A bad strategy can give an impression to most traders that it is a good strategy because its making profits consistently for few months, but the truth is that a strategy that don't adhere to the very basics of good trading practices will not prosper into a real profitable strategy. A bad strategy is like building a house without a good foundation.

So if you want to succeed and become a consistently profitable trader you must adhere to good trading practices first and everything will fall into places.

I hope you pick something meaningful in this post, good luck to all of us!

The Journey Continue!

Its 2019 and the journey to be a successful and consistent profitable trader continue. In the last few months I been working a lot about the psychology of the market so that I can be a disciplined trader in executing my trades at all times.

I realize recently that there are only two things that a trader needs in order to be successful, first is to developed the mental fitness to be discipline in sticking to my trading strategy, second is to find/create a trading strategy that produces profits over time.

I am hoping that major progress in my trading will really happen this 2019.