Do you know what separates professional traders from losing traders?

Here's my answer and it's not what you think...

#1: Think independently

If you want to succeed in trading, you must have the ability to think independently.

Instead of asking “what” or “when”, learn to ask:

Why.

By asking why questions, you’ll come up with a hypothesis to your questions which brings me to...
#2: Willing to get your hands dirty

Just because you came up with a hypothesis, doesn’t mean it’s correct.

That’s why as a professional trader, you must validate your trading ideas.

You must get your hands dirty and do the work like backtesting and forward testing.
#3: Have the right expectations

Most new traders enter trading with the wrong expectations and end up quitting trading altogether.

The truth is…

* You won’t make money every day

* It’s not a get-rich-quick scheme

* Learning curve is steep
#4: Manage risk like a pro

No strategy works all the time, that’s why you manage risk all the time!

You can use stop-loss, options, position-sizing, etc.

A losing trade must be managed so it feels like an ant bite—not a shark bite where you lose a chunk of capital.
#5: You must trade with an edge

An edge is something you do repeatedly that yields a positive result.

It doesn’t matter if you have the best trading psychology, risk management, favourable risk to reward ratio, etc.

Because without an edge, none of it matters.
#6: Execute relentlessly

You might have a trading strategy that has an edge.

But after series of losses, you might start to doubt the strategy.

So:

* Have a trading account <50% of your net worth & risk 1% per trade

* Reward yourself for consistent effort, not the outcome
#7: Always be a student of the markets

The market is always changing and your learning is never-ending.
#8: Emotionally in control

Don’t let your P&L dictate how you feel.

Don’t be too happy if you’re winning as losses are always just around the corner.

Don’t be too sad if you’re in drawdown as there’ll be better days ahead.

Stay in control.
#9: Know when to stay out

Your trading strategy won't work all the time as market conditions change.

This means you need to know when to stay in the markets and when to stay out.
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More from Trading

TradingView isn't just charts

It's much more powerful than you think

9 things TradingView can do, you'll wish you knew yesterday: 🧵

Collaborated with @niki_poojary

1/ Free Multi Timeframe Analysis

Step 1. Download Vivaldi Browser

Step 2. Login to trading view

Step 3. Open bank nifty chart in 4 separate windows

Step 4. Click on the first tab and shift + click by mouse on the last tab.

Step 5. Select "Tile all 4 tabs"


What happens is you get 4 charts joint on one screen.

Refer to the attached picture.

The best part about this is this is absolutely free to do.

Also, do note:

I do not have the paid version of trading view.


2/ Free Multiple Watchlists

Go through this informative thread where @sarosijghosh teaches you how to create multiple free watchlists in the free


3/ Free Segregation into different headers/sectors

You can create multiple sections sector-wise for free.

1. Long tap on any index/stock and click on "Add section above."
2. Secgregate the stocks/indices based on where they belong.

Kinda like how I did in the picture below.
1/ Feels like a good time to tell the story of how I went from broke to a millionaire to broke again in 2017/18 again...

Yesterday was brutal for some people...

Losing life-changing money sucks, losing any money sucks...you can chase the market or you can change your strategy.

2/ The original thread is gone but you can read it here.

https://t.co/cLLNs75rB0

tl;dr
- Traded $32k to $1.2m
- Thought I was a genius
- Made poor investments
- Didn't conserve capital
- Peaked at 150 BTC
- Lost nearly all of it

2 weeks from losing my house + no income. Oops.

3/ I am going to assume you are in it for the money rather than the tech. Yeah, you might Tweet about the amazing blockchaining of cross-border payments and oracles yadda yadda...really, you are in it to make money.

If you are really in it for the tech, go and build something.

4/ Okay, so if you want to make money, trading is super hard, you are trading against:
- Better traders than you
- People who can move markets
- Unknown information

And if you are trading with leverage you might blow up your account with the volatility.

5/ If you are not trading, you are investing. Okay, so what are you investing in?

I made the decision that the crypto with the best opportunity of existing in 10 years is #Bitcoin:
- Solves a genuine problem
- The right tech
- A proven track record

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