Each trader forges their own path, usually by absorbing knowledge of the bigger and more successful traders. No matter what happens during your career as a trader you must realise that if you do not sit down, buckle in and get the right education to make money, you are setting yourself up for failure from day one.
You might see the best trading quote on Facebook, or listen to some audio from a successful guru, but in the end they are not going to sit behind you and tap you on the shoulder right when you are about to make a huge terrible mistake.
So here are 3 trading tips from successful traders that can really help you find success fast.
1) If you have positions going against you, you can stay in, and stay wrong, but it’s not really about being wrong, it’s about how long are you going to stay wrong that will make or break you as a trader. Most of the big wigs on Wall St, or the smart traders realise that the stock market is not going anywhere. If a trade starts to go against them, they will get out of the way rather fast.
2) If a trade is working really well, then they will keep them. Risk control is the one of the most important things with stock trading, or being a stock trader and when you work that out the solution is rather simple. Get out and live to fight another day. There is nothing worse than to see yourself in a losing trade only to see that position get even worse. The reason is, you will always have a chance to get back in. There is no need to wish and pray for a losing trade to come back. 90% of the time it never will so always remember that.
3) Making money on the stock market is never about winning. No, it’s about how you control your losses. Money management is the most important aspect to all this. You will have wins, but when you lose, what will happen is that you might make $1000, but then the next day you lose $600. But remember you are still $400 better off, by clicking a few buttons. You need to admit to yourself, eventually you are going to take a loss. But the trading process is like two steps forward and one step back. But every time you take a step back and make a loss, ensure you are not erasing all your recent gains. That is called control and will ensure your account is always increasing.
When you are entering a trade always know where you are getting in, and where you are hopping out in case the trade goes against you. This is the easiest way to become a highly successful trader. And over the long run you will continue to make money over and over.