DON'T KEEP DOING THIS đ«
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 decisions as a trader:
1. Detect your mental biases: Not all of your trades will be successful. Setting a clear stop loss limit 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 just as important as letting profits run. Work on SL, don't use levels that are likely.
3. Analyze 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 the memes that move in trillions, 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 come up with the first single-cylinder internal combustion engine. Do not expect less from trading.
5. If you do not have at least 3 good technical reasons to enter a trade, do not do it. For example, overbought RSi, low buying volume, hammer candle.
6. Capital Management: Rule No. 1 is to preserve your capital. Your strategy must include how to do it. Do not enter with little capital, super leveraged, with cross margin and without SL. The rest of the money you have in the account will be taken to keep your trade open if you are losing.
7. Follow a routine: Repeat what you do well, change what you do not. Compare results. In all businesses that work this is the key.
Investment is smarter when it is more professional. BG
These are times of reading.
