9 lessons from Traders Who Made Multiple 8 figures
Hello Traders, I am discussing 9 lessons from Traders Who Made Multiple 8 figures bellow.
Losses are an unavoidable part of trading, and it is critical to recognize that they are a normal part of the process.
It's important to remember that even the most successful traders lose money, and how they deal with those losses determines their overall performance.
Setting stop-loss orders, which are orders that automatically end a trade when it reaches a certain level of loss, is a critical component of loss management.
This may help traders limit their losses and protect their wealth. It's also critical to have a plan in place for dealing with larger losses, such as reducing transaction sizes or taking a trading break.
Don't be afraid, new traders... you're going to blow up your account at least once.
Because if you never did it, you never knew what it was like to lose your gains, initial capital, and dreams.
You need to go through that once so your brain knows you'll never go there again.
There is no other way, even if you follow successful traders' advice... If it hasn't happened to you yet, I guarantee you'll blow up your account sooner or later.
Every successful trader I know has lost at least one account.
My wish for you is that it occurs early in your trading career, so that the capital loss is small in comparison to future potential gains.
Discipline is a necessary characteristic for any trader.
Trading can be a volatile and fast-paced environment, and it's easy to get caught up in the market's excitement or anxiety.
Discipline, on the other hand, allows traders to stay focused and follow their trading strategy even when emotions or other events try to distract them.
My discipline strategy is two-folds:
1) When I capture one or three great intraday moves, I call it a day. I don't want to give up my gains.
I shut down my trading station and stopped watching the market because I was always thinking, "Oh, it's still moving, I could have made X USD more."
2) It's being patient because anything can happen. I'm getting ready to trade at 6 a.m., but nothing happens until 5 p.m., so I have to wait, wait, wait.... for a good setup to appear.
This is not a natural skill; I learned it.
Trading success requires careful planning.
This requires a solid trading strategy as well as a thorough understanding of the market and the instruments being traded.
To ensure that this strategy remains effective and current, it must be evaluated and updated on a regular basis.
Preparation also includes staying up to date on market news and events that may affect the assets being traded.
Reading industry journals, following financial news sites, and participating in online groups or forums may all be beneficial in this regard.
As an intraday trader, I check the main events of the day every morning and make sure not to be in a trade or to be at least SL/breakeven around macro events such as CPI, FOMC, etc…
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Risk management is an essential aspect of trading.
This includes understanding the level of risk associated with various instruments and techniques, as well as ensuring that only a suitable level of risk is taken on given the trader's risk tolerance and financial resources.
It's critical to remember that profit potential is directly proportional to risk level.
This means that, while higher risk tactics have a higher potential for profit, they also have a higher potential for loss.
Overall, I'm a risk-averse trader... but when I spot a very profitable potential setup, I step on the gas... which means I increase my position size significantly.
Emotions can be a trader's most dangerous adversary.
If unchecked, fear, greed, and overconfidence can all contribute to poor trading decisions.
Meditation was extremely beneficial to me in this regard.
When trading, traders must be able to identify and manage their emotions.
Limiting the amount of risk taken, using stop-loss orders to protect against excessive losses, and taking breaks as needed to clear the mind are all examples of this.
Trading can be unpleasant at times, especially when you're dealing with losses or a run of bad luck.
Traders must remember that setbacks are a normal part of the business and focus on long-term goals.
Taking breaks, seeking help from others, and remaining disciplined may all help traders get through these difficult times.
Accepting frustration is also a learned skill that must be developed.
When I'm frustrated, I know what to label and what to do to relax (meditation, stretching, deep breathing, self-massage, classical music, ...)
Frustrations compound, resulting in ever-increasing frustrations and losses.
And we become dissatisfied because... we lost money or did not make as much as we could...
The wealthiest traders I know are those who can completely decouple their trades from monetary value.
Which is kind of impossible when most 1 trade >= 1 month's rent = too much mental pressure and stress.
Failure is a necessary component of learning, and traders must realize that it is acceptable to make mistakes.
What matters is how traders deal with their mistakes and grow from them.
Honestly evaluating what went wrong is essential, as is making the necessary adjustments to avoid making the same mistakes again.
Hesitation can hurt a trader's chances of success.
In the fast-paced world of trading, hesitant traders may miss out on opportunities or join transactions too late.
Traders must make decisions quickly and confidently, while also understanding the potential risks and benefits of each transaction.
Trading is a journey that must be approached with a long-term perspective.
Accepting that there will be ups and downs, as well as committing to ongoing learning and growth, is required.
Setting reasonable goals and celebrating minor victories along the way are also essential.
Thank you for reading.
