If you’re looking to become a successful trader over time, you must embrace discipline as an art.
The market is exceptionally volatile, friendly to those who know its rules and stick to it, and unkind to those who ignore them.
Yes, a few gambles might rake in a lot of money. But, without discipline, you will lose this money as quickly as you gained it.
Over the years, thousands of beginner traders have tried to approach the market without caution, without a disciplined mind.
It ended in tears for over 90% of them.
However, it won’t end in tears for you, if you follow these simple tips and tricks to maintain discipline as a trader and master your trading.
Here are five key trading tips, to keep in mind:
- Practice: The only way to get better is through practice. Trading is not gambling. Don’t treat it as such.
Don’t just go around entering trades without developing an actual strategy.
Leverage on demo accounts. Use these accounts to perfect your trading strategy before you put your money on the line. And speaking of money, just how much should you put on the line?
- Manage your risk: It might be tempting to put all your money on the line by increasing your lot sizes beyond what you can afford to lose. We’ve all been there and done this.
This is risky business.
Instead, use large lot sizes for only what you can afford to lose per time. A lifetime of successful trading is not about how much you can make at once.
It’s the small wins, the little but steady trickles that sum up into a profitable career.
- Meditate: When trading, you have to be in your best state of mind. No anxieties, no worries, no unnecessary pressures!
Just calm – Meditation puts you in this state of calm.
You’ll be surprised at how many of your favourite traders use this technique. Why not try it too?
It might sound quite “out there” but meditation is scientifically proven to calm the mind and improve mental performance.
Every day, every time, you should be able to stare at the screen and examine the markets with your eyes clear and your mind sharp.
The less each win or loss moves you, the better you get in your trading career.
- Set a daily target: More than 70% of successful traders work with a daily aim and stick to it.
Yes, it is appealing- the prospects of making thousands of bucks every single day.
However, if you don’t know when to stop, frustrations and anxiety will get the better of you, and you might lose everything you have gained.
So, with this in mind, make sure you have a daily target and stick to it!
- Never trade without a stop loss: Despite your best analysis and strategy, the market still has it within its scope to surprise you and go in the opposite direction you have predicted.
You should learn to stop your losses when this happens.
You could set the mark at some pips above or below your selling or buying trades. This practice will save you a lot of money in the long run.