5 things every trader needs to know

  1. Do not use more Indicators than necessary — As we discussed before, there is no such thing as the “holy” grail of trading. If you want to become good at trading, you got to understand the simplicity. Simplicity is king. The fewer indicators you use to judge your execution of trades, the better typically. Indicators usually just add to the buzz you should be avoiding while trading, so the fewer you use, the better your executions usually become. You need to change your mind here. Indicators should not help you enter a trade. They only should keep you out of a trade. This is one of the best ways to avoid being influenced by the indicators. Indicators should not be a critical point of your strategy but a healthy fundament to build your strategy right on top of the Indicators.
  2. Use a strategy — Do not just use any. Using the wrong strategy can really lose you money. Find a strategy that makes sense to you. Do not let yourself be talked in by trading mentors that guarantee you x amount of money with their strategy. The holy grail of trading doesn’t exist, but if you just want to spend a lot of time researching, double down here. Research every single strategy out there until you are confident that you want to use the chosen, focus on the selected strategy, and try to blind everything out that has nothing to do with your approach. Trading is about finding your focus and keeping that focus consistent like a death-ray.
  3. Use as many perspectives as you can before entering a trade — It does not matter whether you want to day or swing trade. The more perspectives and views you got on a particular trade set-up, the better your judgment usually gets. An often seen mistake is that Traders look at a timeframe that would make them enter a trade, and as soon as they move up higher in the timeframe, they redecide. The different timeframes can give you constructive insight while trading.
  1. Document every trade — This is my favorite tip I can give you guys because it is easy to do. All you need to do is taking screenshots after you made a trade. Make sure to save the screenshot because we are coming back to look at it again at the end of the week. Reviewing your trades is a great way to learn and really is one of the best ways to preserve the experiences you collected while trading. All it takes is time and consistency. If you find the time to judge your successes and your failures, you will understand what it means to take a good trade.
  1. Plan my trade

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Yves Hofstetter

Yves Hofstetter

Young aspiring blogger and entrepreneur, trader, psychology student, and hardcore punk fanatic. https://yvestalksbitcoin.com/