10 things that have helped me stay profitable as a full-time trader for nearly two decades ๐งต
1) Following the market. Market speaks to us in one language: Price. Be it volatility or direction, the ideology has always been simple: to follow the price as closely as possible. Whenever I have astrayed from the objectivity of price, have been severely punished by the market.
2) Exiting losers & accepting mistakes. This is something basic & every trader knows it by heart. But to apply it is still a challenge & our basic human psychology interferes with it. Being a full-time trader helps in this aspect, as we can't really afford to lose big.
3) Learning from each & every mistake. Losses are part of the game & yet we can't use this statement to get away from learning from them. Treating every loss seriously & finding something useful in each of them eventually helped in accelerating my learning curve.
4) Adapting to change. We get stuck with our non-performing strategies for far too long. When the regime changes, one has to get out of their comfort zone & explore other strategies that can handle whipsaw moves better. To achieve consistency, it's an essential requirement.
5) Scaling up position gradually. Never going all in at the outset has helped me to assess market conditions better. The aim is not to try to capture the full move with the full position size, but to go the distance. This greatly aids in riding winners and exiting losers.
6) Forming a view & protecting that view. Sometimes a view just needs persistence. A simple SL is not enough as the market always tests, shaking up the week hands before giving a good move. So we need to find ways to protect that view through various hedging mechanisms.
7) Stability in both ups and downs. It's easier said than done, but I make sure the ups don't get into my head. Staying humble in those times helps go a long way. It's important to not let profits get in the way of market learning. Downs need the natural process of time to heal.
8) Don't compare with others. Everyone has a different risk appetite. Many traders I knew in the past who were doing well blew up because they didn't understand risk management. Understand yourself & your expectations from the market. Sustainability has always been the No. 1 aim.
9) Not blaming the markets. Traders usually start with the blame game if markets suddenly become tough for their strategies. One has to understand that markets are always right no matter what. The same energy can be used to learn & improve for the future.
10) Less stressful post market activities. It becomes vital to indulge in holistic, mindful activities post-market. Also need to create a relaxed environment at home with healthy relationships. It has a direct impact on trading, which is a psychological profession.
Some of the above points are basic & you would already be aware of them. But over a period of time, we forget & get lost in our daily market routine. So if you are struggling right now,then treat it as a healthy reminder & get back to basics. That's where you start winning again.
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