2. One thing is certain; there will be losing trades. With good money management techniques you give back little profit when the market moves against you and you can accept losing trades as a controllable cost of making yourself available for the winning trades.
3. You cannot control the outcome of a trade. You can only control the setup and the risk you accept.
4. Patience is key. That’s why I (being a day / swing trader) don’t work with daily targets, but rather with monthly targets, to avoid chasing trades and forcing setups that are sub par. Take only good set ups with sufficient confirmation and if you don’t see one: don’t trade.
5. No single system will be right 100% of the time. Build the case for entry, using several kinds of input into your decisions. Go for confluence to increase the edge.
6. Don’t psychologically micro manage your trades, monitoring each candle as it develops. Once stops and targets are clearly defined, let a trade play out. Sometimes stepping away from the screen helps.
7. A trading plan can help you identify whether a series of losses happened due to market conditions or due to trading errors.
8. I look at trading as running a small business with no customers, no suppliers, no psychical stock to maintain, no brick and mortar business space to rent, no government mandated opening hours, no chasing of your payments, no employees to manage and no colleagues to depend upon. What’s not to like?
9. It helps to be a positive person. I don’t mean delusional or overconfident (there are plenty of those), but just positive. Trading is an activity where analysis, risk and stress come together and your will be helped greatly if you have a positive disposition.
10. Practise prudent portfolio management where you start small and slowly grow the portfolio step by step by adding more pairs / instruments.
As I also noted in the last idea I published one important lesson I learned in the past couple of days/weeks is that one always tends to expect things to happen right away...
What I mean is: after having identified a pattern (or others doing it for you, thank you Tradingview members :-) !) and having thought up a possible setup based on that pattern, one tends to disregard the timeframe it took to develop the pattern, and thus also ignoring what a realistic timeframe would be for the further setup to unfold!
I guess we are just impatient creatures... So it's as they say: patience is key (your number 4)!
And stepping back once and a while and looking at the bigger picture should certainly help to put things in perspective!
What I also learned: don't think you will not make the same mistakes which you made in the past, certainly if they are based on emotion!
Human emotion/psychology is so much stronger than pure reason; and feelings of greed, fear, not being able to deal with losses (a problem for me still!) will not go away just because you read about it, acknowledge it or have experienced it!! Know that and always keep that in mind, or put a post-it on your computer screen with that sentence (note to self...)!
As you said: a trading plan and written down (yes, write them down!) rules or even filling in a genuine checklist before you enter a trade! This might sound strange and foolish to some, but that's what you would do in any business, and it's a basic tool found in every QA or safety/risk analysis program. And if it will help you catch more pips in the end, then why wouldn't you do it!
Thanks again for your post, happy trading to all!