Trade like a Pro.

TraderPRO

Well-Known Member
#1
Winners do not do different things. They do things differently.

To emerge as a winner in the stock market, either be a trader or investor requires trading to be done in a different way,the successful way.

I will use this thread to remind myself of the necessary ingredients to trading successfully. These may be mostly from experts and other traders who blog.

Thanks for reading.:thumb:

If you find anything in this thread that is irrelevant ,pls ignore. If you find anything useful, start applying it.

Happy trading.:)

P.S
Patiently wait with Risk Management for the
Right Opportunity
 
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TraderPRO

Well-Known Member
#2
Discipline

5 Disciplines for Successful Trading Andrew Nyquist

The list of disciplines that I have gathered over years of trading, studying, and always learning that I believe lead to successful trading.

1. Have a process with unbreakable discipline. Great trades sometimes come with small losses. Keeping losses in check is key… there is always another day and capital is a trader’s lifeblood.

2. It’s a marathon, and amazing opportunities come to those with patience, available capital, and a thoughtful plan. Timeframes are key and patience can mean waiting an additional 15 minutes, an hour, a day, or a week, or legging into weakness or out of strength similarly. Exiting profitable “long” trades in fractions (while raising stop-loss levels) allows you to let them run and maximizes profits.

3. The trend is your friend, but don’t marry it. Letting emotion get the best of you often leads to lost profits. Become balanced and make sure that you can make money, bull or bear. Get to know yourself. Do an honest assessment and work within skills and psychology. Stretch yourself, but don’t try to be someone you’re not. And that goes for life as well.

4. Don’t second-guess yourself due to “the crowd.” Let your plan (and your stops) do the second-guessing.

5. Respect others like you respect your money. Work hard, give freely. Make money.

Source
 

TraderPRO

Well-Known Member
#3
Thanks to Saravanan:


The Wheel of Success - by Douglas E. Zalesky
There are three spokes that make up, what I call the “Wheel of Success”
as it relates to trading. The first spoke is content. Content consists of
all the external and internal market information that traders utilize
to make their trading decisions. All traders must purchase
value-added content that provides utility in making their trading decisions.
The most important type of content is internal market information (IMI). IMI simply is time and price information as disseminated by the
exchanges. After all, we all make our trading decisions in the present tense based on time and price. In order to “scalp” the markets effectively, we must have the most live and up-to-date time and price information seamlessly
delivered to our PCs through a reliable execution platform and/or charting package.Without instantaneous time and price information, we would be trading in the dark.

The second spoke is mechanics. Mechanics is how you access the markets and the methodology that you employ to enter/exit your trades. You must master mechanics before you can enjoy any success as a trader. A simple keystroke error can result in a loss of thousands of dollars. A trader can ruin his entire day with an inadvertent trade entry error.

Once you have mastered order execution, though, it is like riding a
bike. The process of entering and exiting trades becomes seamless
and mindless. Fast and efficient trade execution, especially if you are trading with a scalping methodology, will enable you to hit a bid or take an offer before your competitors do. Remember, the fastest survive.

The third and most important spoke in the Wheel of Success is discipline. You must attain discipline if you ever hope to achieve any level of trading success. Trading discipline is practiced 100 percent of the time,
every trade, every day.

Review the following 25 Rules of Trading Discipline. You must condition yourself to behave with discipline over and over again. Many
of my traders and clients read through the rules every day (believe it or not) before the trading session begins.

It doesn’t take more than three minutes to read through them.
Think of the exercise as praying — reminding you how to conduct yourself throughout the trading session.
 

TraderPRO

Well-Known Member
#4
The Wheel of Success - by Douglas E. Zalesky contd..

The 25 Rules

1. THE MARKET PAYS YOU TO BE DISCIPLINED.

2. BE DISCIPLINED EVERY DAY, IN EVERY TRADE, AND THE MARKET WILL REWARD YOU. BUT DON’T CLAIM TO BE DISCIPLINED IF YOU ARE NOT 100 PERCENT OF THE TIME.

3. ALWAYS LOWER YOUR TRADE SIZE WHEN YOU’RE TRADING POORLY.

4. NEVER TURN A WINNER INTO A LOSER.

5. YOUR BIGGEST LOSER CAN’T EXCEED YOUR BIGGEST WINNER.

6. DEVELOP A METHODOLOGY AND STICK WITH IT. DON’T CHANGE METHODOLOGIES FROM DAY TO DAY.

7. BE YOURSELF. DON’T TRY TO BE SOMEONE ELSE.

8. YOU ALWAYS WANT TO BE ABLE TO COME BACK AND PLAY THE NEXT DAY.

9.EARN THE RIGHT TO TRADE BIGGER.

10. GET OUT OF YOUR LOSERS.

11. THE FIRST LOSS IS THE BEST LOSS.

12. DON’T HOPE AND PRAY. IF YOU DO, YOU WILL LOSE.

13. DON’T WORRY ABOUT NEWS. IT’S HISTORY.

14. DON’T SPECULATE. IF YOU DO,YOU WILL LOSE.

15. LOVE TO LOSE MONEY.

16. IF YOUR TRADEIS NOT GOING ANYWHERE IN A GIVEN TIMEFRAME, IT’S TIME TO EXIT.

17. NEVER TAKE A BIG LOSS. ONLY A BIG LOSS CAN HURT YOU.

18. MAKE A LITTLE BIT EVERYDAY. DIG YOUR DITCHES. DON’T FILL THEM IN.

19. HIT SINGLES NOT HOME RUNS.

20. CONSISTENCY BUILDS CONFIDENCE AND CONTROL.

21. LEARN TO SWEAT OUT (SCALE OUT) YOUR WINNERS.

22. MAKE THE SAME TYPE OF TRADES OVER AND OVER AGAIN – BE A BRICKLAYER.

23. DON’T OVER-ANALYZE. DON’T PROCRASTINATE. DON’T HESITATE. IF YOU DO,YOU WILL LOSE.

24. ALL TRADERS ARE CREATED EQUAL IN THE EYES OF THE MARKET.

25. IT’S THE MARKET ITSELF THAT WIELDS THE ULTIMATE SCALE OF JUSTICE.
 

TraderPRO

Well-Known Member
#5
How To Break Bad Trading Habits

How To Break Bad Trading Habits By Cory Mitchell

All traders should have a good trading plan. One of the worst bad habits a trader can have is trading impulsively and without any guidelines. Traders who take the time to make a trading plan are much more likely to succeed, but even with a plan in place we can develop bad habits. A trader will make impulsive trades even with their plan taped to the wall next to them. They may exit winning trades too quickly or let losses go longer than their plan states they should. In this article we will go into how we can change our bad habits. The process involves how we personally view our successes and failures, as well as the rewards and punishment we give ourselves based on these views.

Defining Success
In order to break bad trading habits, traders need to base success or failure on each trade by how they stick to their trading plans and not simply on whether they make or lose money. If you make a bad trade (that is, an undisciplined trade, one not part of your trading plan), but make money on it, you still have to view that as a failure; you cannot congratulate yourself. By congratulating yourself, you are offering a small reward for something done incorrectly.

Also, if you make a good trade (one that fits your trading plan perfectly), and you lose money on it, you have to view it as a success because you followed our plan. It's more likely we berate ourselves even though we followed the plan; in other words we punish ourselves for doing what we were supposed to do! If you lose money, you can then analyze the trades to see if the trading plan can be made more profitable. But, if you continue to reward yourself for undisciplined trades that make money, it will be very hard to change your habits because you are essentially conditioning yourself to make trades that do not fit within your trading plan. If we punish yourself for trades that you lose money on, but that fit within your trading plan, you are much less likely to follow our plan at all.

So, you need to be honest with yourself and avoid accepting undisciplined trades - no matter how profitable they prove to be. Making money on a "bad" trade - holding a massive losing position, only to have it come back leave you a profit - is one of the worst things that can happen to a trader. Tendencies such as these destroy traders over the long run. By trading like this, traders can come to believe that next time they are holding a losing position it will come back. Unfortunately, if this fails to happen just once, it could wipe out your trading account. The trader may also falsely believe that because jumping in and out of the market without paying attention made money yesterday, it might also work today. This is a risky way to play the market.

Changing Your View of Success and Failure
Traders must erase their selective memory. This means, you must remember the times when not sticking to the trading plan hurt you and view those spontaneous trades as a failure. By instigating a mild form of punishment for not sticking to your plan, you will soon realize that not sticking to your thought-out trading plan is a losing proposition over the long run. When you make a trade that does comply with your trading plan, you should pat yourself on the back, even if you lost money.

You can always go back and adjust a trading plan, but the more ingrained our current faulty process for analyzing success and failure, and reward and punishment, the harder it will be to change over time. Every trader can change, but the best time to start changing your bad habits right now.

Applying Reward and Punishment
Once you understand how you are personally defining success and failure, you need to apply a process of reward and punishment to change these habits as quickly as possible. The first step is to change your internal dialog. Traders should praise themselves when they follow their plan, and they should withhold praise when they don't.

The next step involves your external rewards and punishments. Oftentimes, we treat ourselves to dinner or pamper ourselves on a bad day. This should not happen if the bad day resulted from not following the trading plan. So, you should reward yourself when you follow the plan, and whenever possible, withhold rewards (a form of punishment) when you do not stick to your plan.

The word failure in this article is used to show that making money on each trade is not the most important thing. Success for the purpose of this article should be viewed as executing the trading plan you have laid out for yourself. The rewards for success should encourage us to continue with this behavior. The punishment for failing to follow a plan should withhold something we want, but not be negative or self-damaging.

The Bottom Line
Break your bad habits by being honest with yourself about how disciplined you are. Don't deceive yourself into thinking you made a good trade, when in actuality you may have simply gotten lucky. Always stick to a well-thought-out trading plan. Define success as following your trading plan and reward yourself for doing so, regardless of profit or loss. Define failure in your internal dialog as not following your plan, and apply some form of punishment to this action (regardless of profit or loss). By strengthening the rewards or punishments, changes can be made quickly.

Source : Investopedia
 

TraderPRO

Well-Known Member
#7
The Most Important Question You Can Ask Yourself Today

Mark Manson

Everybody wants what feels good. Everyone wants to live a care-free, happy and easy life, to fall in love and have amazing sex and relationships, to look perfect and make money and be popular and well-respected and admired and a total baller to the point that people part like the Red Sea when you walk into the room.

Everybody wants that -- it's easy to want that.

If I ask you, "What do you want out of life?" and you say something like, "I want to be happy and have a great family and a job I like," it's so ubiquitous that it doesn't even mean anything.

Everyone wants that. So what's the point?

What's more interesting to me is what pain do you want? What are you willing to struggle for? Because that seems to be a greater determinant of how our lives end up.

Everybody wants to have an amazing job and financial independence -- but not everyone is willing to suffer through 60-hour work weeks, long commutes, obnoxious paperwork, to navigate arbitrary corporate hierarchies and the blasé confines of an infinite cubicle hell. People want to be rich without the risk, with the delayed gratification necessary to accumulate wealth.

Everybody wants to have great sex and an awesome relationship -- but not everyone is willing to go through the tough communication, the awkward silences, the hurt feelings and the emotional psychodrama to get there. And so they settle. They settle and wonder "What if?" for years and years and until the question morphs from "What if?" into "What for?" And when the lawyers go home and the alimony check is in the mail they say, "What was it all for?" If not for their lowered standards and expectations for themselves 20 years prior, then what for?

Because happiness requires struggle. You can only avoid pain for so long before it comes roaring back to life.

At the core of all human behavior, the good feelings we all want are more or less the same. Therefore what we get out of life is not determined by the good feelings we desire but by what bad feelings we're willing to sustain.

"Nothing good in life comes easy," we've been told that a hundred times before. The good things in life we accomplish are defined by where we enjoy the suffering, where we enjoy the struggle.

People want an amazing physique. But you don't end up with one unless you legitimately love the pain and physical stress that comes with living inside a gym for hour upon hour, unless you love calculating and calibrating the food you eat, planning your life out in tiny plate-sized portions.

People want to start their own business or become financially independent. But you don't end up a successful entrepreneur unless you find a way to love the risk, the uncertainty, the repeated failures, and working insane hours on something you have no idea whether will be successful or not. Some people are wired for that sort of pain, and those are the ones who succeed.

People want a boyfriend or girlfriend. But you don't end up attracting amazing people without loving the emotional turbulence that comes with weathering rejections, building the sexual tension that never gets released, and staring blankly at a phone that never rings. It's part of the game of love. You can't win if you don't play.

What determines your success is "What pain do you want to sustain?"

I wrote in an article last week that I've always loved the idea of being a surfer, yet I've never made consistent effort to surf regularly. Truth is: I don't enjoy the pain that comes with paddling until my arms go numb and having water shot up my nose repeatedly. It's not for me. The cost outweighs the benefit. And that's fine.

On the other hand, I am willing to live out of a suitcase for months on end, to stammer around in a foreign language for hours with people who speak no English to try and buy a cell phone, to get lost in new cities over and over and over again. Because that's the sort of pain and stress I enjoy sustaining. That's where my passion lies, not just in the pleasures, but in the stress and pain.

There's a lot of self development advice out there that says, "You've just got to want it enough!"

That's only partly true. Everybody wants something. And everybody wants something badly enough. They just aren't being honest with themselves about what they actually want that bad.

If you want the benefits of something in life, you have to also want the costs. If you want the six pack, you have to want the sweat, the soreness, the early mornings, and the hunger pangs. If you want the yacht, you have to also want the late nights, the risky business moves, and the possibility of pissing off a person or ten.

If you find yourself wanting something month after month, year after year, yet nothing happens and you never come any closer to it, then maybe what you actually want is a fantasy, an idealization, an image and a false promise. Maybe you don't actually want it at all.

So I ask you, "How are you willing to suffer?"

Because you have to choose something. You can't have a pain-free life. It can't all be roses and unicorns.

Choose how you are willing to suffer.

Because that's the hard question that matters. Pleasure is an easy question. And pretty much all of us have the same answer.

The more interesting question is the pain. What is the pain that you want to sustain?

Because that answer will actually get you somewhere. It's the question that can change your life. It's what makes me me and you you. It's what defines us and separates us and ultimately brings us together.

So what's it going to be?

Source HuffPost