Be Proactive when trading the Financial Markets
Be_Proactive_804x450

Be Proactive

A good trader must be proactive when trading, but it is important to do it the correct way. Never average down on losers, meaning, adding to trades that are going wrong.

It is also important to decrease your trading volume when your trading is not doing well and increase your volume when you are trading well.

Never trade in situations where you don’t have control. For example, don’t risk significant amounts of money in front of key news reports, since that is gambling and not trading.

If you have a losing position that is making you uncomfortable, the solution is very simple, exit the trade, because you can always get back in. There is nothing better than a fresh start.

Don’t be too concerned about where you got into the trade. The only real question is whether you are bullish or bearish on the trade.

The most important rule of trading is to play great defence, focusing on the potential losses, not great offence, focusing on the potential profits.

Never try to be a hero. Forget your ego. Always question yourself and your own ability. Don’t ever start to think that you are a very good trader. The moment you do, you are done.

Don’t focus on making money; focus on protecting the money you have. Never think about what you can make on a given trade. Focus only on what you could lose.

In the end, you must always do what is best for your trading account. Any trader needs money to trade, so make sure you protect your cash with everything you have.

The bottom line is, when trading starts to go poorly, you must continually reduce your position size until you are back on track again. That way, when your trading is not going well, you are also trading your smallest.

Leave a Comment

Need more info?

Contact Us

15987

Open a trading account with a trusted broker

Scroll to Top