If you learn these tips and use them truly, you'd be more successful than before.
#1- Set a Goal in your mind
I believe this rule is very important for doing each work, not only trading. When you set a clear goal in your mind, your subconscious starts automatically working to achieve that goal. But consider that your goal must be realistic and attainable. For example at first, try to earn $1000 each month then when achieve that, increase your goal.
#2- Losing Trades are Part of Trading
It is important to keep in your mind that losing trades are part of trading. You should learn to feel comfortable when take a loss. However, you should try to get out of losing trades on time; I mean that you have to exit of losing trades not very soon and not very late.
#3- Use Stop Orders
Using stop orders are a must. When you use them, you control and manage your losses. Many people don't use stop orders, they say:"when we use stop order the market will hit our stop order and then immediately the direction of market changes". This is not an acceptable reason, because the market may be going down and you lose a lot of money.
People who don't use stop orders, aren't sure about their prediction and don't want to accept that they may make mistake.
#4- Take the Profit
When you got a decent profit, take your profit. A good way is to lock your stop order in profit. This is called trailing stop orders. Also trailing stop orders is a good way to prevent losses, in this way when got some profits, trail your stop order to the same price where you got in the market.
#5- Be Patient
Many traders when lose money in a trade, tend to get the money back immediately in next trade, But this puts them in a bad situation and likely causes them make another wrong decision. After a losing trade, don't decide immediately to get back the money. Review your wrong trade and try to find your mistake.
#6- Make your own Rules
Write a list of rules that must to follow them. Loser people trade without any rules. So, write a list of your rules and stick to apply them. Review the rules always, and try to keep them in mind. In bad situations, take a look at the rules and consider whether the rules need to be improved or you forget to use one of them.
You can use this article to build your list or you'd better to take a look at on my site, simply you can find a list of rules there.
Get Your Head Into The Profit Zone
If you don't BELIEVE you will succeed, you won't. You have to believe in yourself and in your system or you're dead in the water before you even start the engine! Proper trading psychology is the key to success as a futures trader. You have to realign yourself mentally and get your head into the profit zone.
Three basic emotions control the market: patience, fear and greed. If you're going to be a successful futures trader, you can't afford to let your emotions control you. YOU must always be in control, and here are some methods to consider:
1. Don't second guess yourself. If you stop believing in your system and/or if you lose your Patience, you'll pull out too fast. When you pull out too fast, you lose profit.
2. Don't wait for the "perfect trade". The perfect trade is a myth. Don't let Fear put you on the sidelines. Stick with your system, believe in yourself and Get In The Game!
3. Don't get greedy. If you stop using your system and give in to GREED, you'll hold on too long, and risk losing the profit.
The Qualities and Characteristics of Top Traders There many qualities that go into the making of a successful trader. These may be innate traits or developed along the way, but you'll see evidence of each in the best traders in the industry.
1. Passion. You have to like the action. You have to live for the thrill and greet every Monday charged up and ready to play.
2. Daring. You have to be willing to boldly go where no man has gone before. You can't jump on the bandwagon or follow the crowd. You have to trust your system and forge your own way.
3. Confidence. You have to have attitude, and lots of it. You can't allow yourself be beaten down by losses. You have to be able to pull yourself back up and still believe in yourself and your system.
4. Intelligence. You have to be willing to learn and have an aptitude for math.
5. Discipline. You have to be able to stick with it, work hard, and tough it out. You have to have the discipline to stick with your system even when you lose.
6. Humility. You have to be able to look past your pride and ego. You can't afford to cling to a losing scenario because you're too proud to admit a mistake. Take your lumps and learn from them.
7. Stamina. Futures trading is a stressful occupation. It's a roller coaster ride that taxes your brain and your body. You have to have the physical and mental stamina to stay on top of things.
8. Professionalism. Futures trading is business. Follow your brain, not your heart. You have to detach your emotions or they'll suck you into bad decisions.
Do you have what it takes to be a successful futures trader?
Both Mostafa Soleimanzadeh & Bill Mccready are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.