Trading is a bit of a paradox - simple concept yet incredibly complex to successfully execute. I truly believe, one of the most significant shortfalls for retail traders is the lack of structure and regulation. With no true forcing function, we are our own moderators and in that way, many of us fail ourselves. Fortunately, the solution like the concept of trading, is a simple concept - the tricky part is executing.
1. Control Risk. Resolve to have a predefined profit and loss target for every single trade you put on. You‘ve just took one small step the vast majority of retail traders don’t - controlled risk.
2. Create a Plan. Don’t be lazy. That’s the first excuse you’ll see here. Traders have no qualm lamenting how much money they’re losing but few put in the work to develop a well structured plan. You will struggle to respect your predefined profit and loss targets if you don’t trust them. A well crafted plan creates trust.
3. Pursue Discipline. Trading is 1v1, you vs you. We are responsible only to ourselves, a primary benefit but pitfall for most. We must self motivate, self regulate, and self control. If you lack discipline, it’s imperative you build it - not just for trading but for life. You will be unable to accomplish rules 1 and 2 without the traits from rule 3.
What rules would you add to this list?
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My name is Erik. I’m a Marine vet, lifelong trader, information activist, and a self-made millionaire. I’m nothing special, didn’t come from money, and have no secrets.
My goal is to share 15+ years of trading, investing and wealth development knowledge without the BS.
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