What makes a good trader? How to trade? [Beginner & Advanced]
Updated
These are the set in stone all mighty trading rules:
1- Preserve capital.
2- Preserve mental capital.
3- Build a bias.
4- Have systems to enter and (more importantly?) exit.
5- Find ideas to enter.
6- Choose your markets timeframes strategies.
7- And more.
I think these are all the ones. I'm sure being bad at some and amazing at others you can still make money (especially for traders working in funds with other people carrying them), but try to be at least mediocre at all, a single 0 at any of those is ELIMINATORY.
Explains why 80% fail miserably.
They don't always know it on the first day, but they all end up finding out the harsh way (teaches them to try and argue with me (:)
This is how I would evaluate my chad momentum trader versus bottom chasing virgin that has E-F everywhere.
1- C :p Totally irresponsible. Money is just a tool to me, a disposable tool to be risk. I make sure I still have some left so I am not done thought XD
2- A+.
3- A or B. When I don't know I don't know, but when I think I know something I am usually right and I see the tables turn as fast as anyone could. Without insider info.
4- A or B.
5- B. Fluctuates between A and C.
6- D but I think I am fixing that and jumping to B soon.
7- NA/C/idk.
My goal right now is to maintain my level and make sure about 6 (D), after a while possibly add a new decent strategy, once I get bigger improve much at 1 (shouldn't be too hard).
As a conclusion, you see how people that are right (bias) lose money, it is only 1 part of the puzzle and they are absolutely disgusting at the rest.
And yes you need at least some min level in all of them, how would you make money if you are unable to come up with ideas? Hard to see how that is possible thought with all the information available, BUT too much info can make it hard to filter and actually hard to come up with ideas that don't contradict themselves etc. There's always 1 guy swearing you should sell and another one swearing you should buy. And me often swearing you should be patient and do nothing.
Also, the first 5 rules are absolutely set in stone, but 6 and 7 well that's not. Could change, not sure how important they are.
I'll probably repost this in 6 months. Never hurts to be reminded of it all.
1- Preserve capital.
2- Preserve mental capital.
3- Build a bias.
4- Have systems to enter and (more importantly?) exit.
5- Find ideas to enter.
6- Choose your markets timeframes strategies.
7- And more.
I think these are all the ones. I'm sure being bad at some and amazing at others you can still make money (especially for traders working in funds with other people carrying them), but try to be at least mediocre at all, a single 0 at any of those is ELIMINATORY.
Explains why 80% fail miserably.
They don't always know it on the first day, but they all end up finding out the harsh way (teaches them to try and argue with me (:)
This is how I would evaluate my chad momentum trader versus bottom chasing virgin that has E-F everywhere.
1- C :p Totally irresponsible. Money is just a tool to me, a disposable tool to be risk. I make sure I still have some left so I am not done thought XD
2- A+.
3- A or B. When I don't know I don't know, but when I think I know something I am usually right and I see the tables turn as fast as anyone could. Without insider info.
4- A or B.
5- B. Fluctuates between A and C.
6- D but I think I am fixing that and jumping to B soon.
7- NA/C/idk.
My goal right now is to maintain my level and make sure about 6 (D), after a while possibly add a new decent strategy, once I get bigger improve much at 1 (shouldn't be too hard).
As a conclusion, you see how people that are right (bias) lose money, it is only 1 part of the puzzle and they are absolutely disgusting at the rest.
And yes you need at least some min level in all of them, how would you make money if you are unable to come up with ideas? Hard to see how that is possible thought with all the information available, BUT too much info can make it hard to filter and actually hard to come up with ideas that don't contradict themselves etc. There's always 1 guy swearing you should sell and another one swearing you should buy. And me often swearing you should be patient and do nothing.
Also, the first 5 rules are absolutely set in stone, but 6 and 7 well that's not. Could change, not sure how important they are.
I'll probably repost this in 6 months. Never hurts to be reminded of it all.
Note
I have 2 core strategies, they each work in their own environment, but they probably can be combined and adapted to others.I think I found a sweet spot reward to risk 1.5
I was on average at 1.25 before, but I see most winners not going that far, and I can increase profitability I believe with a RR of 1.5
Much more than 1.5 is too much thought and it gets really tight, or I'll miss all the time.
1.5 is just perfect I think.
More like 1.4 on average/small moves with spreads.
I only need 42% winrate to be profitable, easy.
Next step is I keep analysing my trades, and log them in an excel and screenshot them for the next year, and then I'll use that to potentially slightly tweak my strats.
Probably won't move much from where they are now.
I probably will instead look for new markets or new strats.
Note
How to build a bias: the example of japanese housewives
(I should start selling this info)
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