🚫DON’T KEEP DOING THIS 🚫
95% of traders make this mistake: letting losses run. This happens when they don’t admit they were wrong about the price direction. Here are some realistic tips to improve the quality of your trading decisions:
1. Identify your mental biases: Not all of your trades will be successful. Setting a clear limit to stop losses is essential. And above all, don’t hold on to a losing trade in the hope that the market will turn in your favor.
2. Set Stop-Loss and Take-Profit: Avoiding losing your capital is as important as allowing profits to run. Work the SLs, don’t use probable levels.
3. Analyze the volume: Many traders make the mistake of going short or long as soon as they see the RSI overbought or oversold, but they don’t analyze the volume. For example, in trillion-dollar memes, it is crucial for a short entry to start seeing how the volume decreases as the price rises.
4. Constant education: Enslave your mind to relevant information in the early years. It took many years for Henry Ford to create the first single-cylinder internal combustion engine. Don't expect less from the trade.
5. If you don't have at least three good technical reasons to enter a trade, don't do it. For example, overbought RSi, low buying volume, hammer candle.
6. Money management: Rule#1is to preserve your capital. Your strategy should include how to do it. Don't enter with little capital, overleveraged, cross-margined and without SL. The rest of the money you have in the account will be used to keep your trade open in case you lose.
7. Follow a routine: repeat what you do well, change what you don't. Compare the results. In all successful trades this is the key.
