Disclaimer: I am just an amateur trader, the tips I share with you are just tips I have found useful and that actually work for me.
Trading with discipline will lead you to greater success, you could almost say that the market rewards you to be a disciplined trader. A disciplined trader follows their trading plan, makes trades based on their lifestyle and most importantly honors their stops. Be disciplined 100% of time, every day, every trade.
You do not have to trade every single day, unless you are a professional trader and you actually work for a trading firm. Take a break, do not stress out.
If your trades aren’t doing so hot, lower your trading size so that you can minimize your losses. For example, if you make two or three consecutive bad trades, lower your trading size until you start gaining again. Once you gain/break even, you can increase the size of your trades again.
Don’t trade ridiculously large amounts, that’s not you. Trade within your comfort zone. You may not be able to handle the emotional and psychological impact these large trades may cause.
If you become greedy, you may turn your winning trades into losing trades. Exit the trade based on the trading plan you have laid out. Even bullish stocks can turn bearish.
Once you’ve realized you have made a bad trade, don’t wait, just exit. If the trade is bad, it will probably get worse, there is no point in waiting. Accept your losses, learn why it was a bad trade, and move on. Just remember praying and hoping doesn’t do much.
Control and confidence comes with consistency. Execute your magic strategy every day you trade.
If you realize your trade is not going anywhere, just ditch it. A steady price is called price stagnation, and it occurs when the market is satisfied. This makes it a waste of time, your capital can be used in other trades.
Usually a huge winner comes with luck, not skill. A plethora of small trades are usually abundant in the market. Huge winners are rare and most of them are 99% luck.
If 3 out of your 5 indicators are saying BUY, then buy. Don’t wait for the last 2 indicators to indicate buy. Procrastination, hesitation and over analyzing will result in no profits. Place the trade, if you’re wrong, get out. It’s better than regret, in case the trade turns out good.
The market does not discriminate. It’s free to move wherever it wants to go. Respect the market, it’s always right.
Never lose more money than you can afford to lose. You should also only invest money that you know you can live without. Accept your losses, and remember to get out of bad trades quickly, before they become fully sour.
Try to make a little bit of money everyday. A lot of good small trades will sum up to a lump sum. You should have set daily goal, for example try to make 1–2% daily. This may be difficult at first, but it shouldn’t be too hard after you have perfected your magical strategy.
Don’t change it based on one loss, even if its a large loss. Although, if you do see consistent losses, you should make some amends to your strategy to turn those losses into profits or at least minimize those losses.
This goes along with discipline. Do what the market tells you, not what your heart tells you. A good investor should be able to see their trades from all different perspectives.