Part 1 of our incoherent ramblings is here, you are welcome to take it from the top. In the meantime…
6. Face the truth.
And the truth is pretty brutal. Even though trading is probably the one with the most earning potential in the world, forget about getting rich off of your measly $1000 account. It doesn’t work like that. Moreover, if anybody tells you it’s possible – run because you’re being lured into an alley in a brutal robbery attempt. So, don’t let anybody or anything cloud your judgement, stay on course, remain vigilant. And remember that over-leveraging, like love, is an ill for all ages.
7. Wanna trade, trade, trade? Don’t.
Not many traders, even those with some notches on their belts, can handle high frequency trading. It’s an emotional roller-coaster and many times is a one way ticket to a psychiatrist’s office. So, again, slow and steady. You’ll get there!
8. Daily chart is your Bible
The daily chart time frame is your playing field, the price action is your ball. Period.
9. Figuring out the optimal stop loss placement is an art form
Hundreds (hopefully, not thousands) of dollars and countless sleepless nights later you’ll figure out how to NOT get stopped out before the market does its thing and moves in your favor. The higher the stakes are going to be, the stronger is the temptation to move stop loss closer to your entry price. Do or don’t, to know and feel this is truly the realm of the greatest.
10. Again, educate yourself!
Would you fly a plane without first going to a pilot school? Would you sail a boat before finding out the difference between luff and leech? Hell, would you go into your own kitchen without the recipe in one hand and a measuring spoon in the other? So, why would you risk losing your money and start trading without first obtaining at some solid knowledge on how it’s done? School’s in, son!