TRUTH ABOUT TRADERS

1.    You have to have passion for learning to trade; passion is the energy that you need to take you to your goals.

2.    You have to have the perseverance to keep going after you want to give up.  90% of new traders quit when they were very frustrated while 100% of successful traders didn’t quit until they reached their goals

3.    New traders spend too much time looking for what to trade instead of focusing on who they are as traders.  You have to know who you are as trader first then you can start building your trading system.

4.    Traders have to be able to manage their stress by trading inside their current comfort zone. Traders have to grow themselves and trade size step by step.

5.    The vast majority of new traders fail simply because they did not do their homework before they started trading.

6.    A trader has to build a trading system that matches their own personality and risk tolerance levels.

7.    A trader that chooses to be master a specific type of trading method or trading vehicles has a much better chance of success than the traders that just dabble in many different things and never make much progress.

8.    A trader has to write a good trading plan while the market is closed to guide their trading while the market is open.

9.    A trading plan has to be followed with discipline to have a chance at success.

10.    A trader has to manage their behavior by acting consistently with their own rules.

11.    “The answer to what’s the trend? Is the question “What’s your timeframe?” – Richard Weissman.  All traders are simply trying to capture trends in their own time frame.

12.    Never risk losing more than 1% of your trading capital on any one trade. Once you lose 1% of your capital you should exit the trade.

13.    Be very aware of how much risk your total account is exposed to at any one time through position sizing and volatility.

14.    Set your stop losses far enough away from your entry point to avoid regular noise and fluctuations. Find your stop level first, and then position size accordingly.

15.    A trading plan has to be followed with discipline to have a chance at success.

16.    The money I have made in the stock market was made through following the chart and the trend not from some prediction or opinion.

17.    My biggest trading losses came from hoping, stubbornness, and bias.

18.    My best trading has happened when I was the most open minded simply trying to answer the question: “What is the chart telling me to do now?”

19.    If you have to ask others for their opinions about your trade you should not be trading you should still be in the process of study and writing your trading plan.

20.    “If you diversify, go with the trend, and manage your risk, then it just has to work.” – Larry Hite