8 Golden Rules of Successful Traders Follow to Make Insane Profits

By | May 9, 2022

90 per cent of traders failed in the stock market because they do not follow the golden rules successful traders adopt.

Moreover, these failed traders never understand all the pains a successful trader has gone through. They see only how much a consistently profitable trader makes.

Just like an Iceberg which is much bigger below the water surface than the above surface.

In fact, so many things happen below the surface that nobody can see.

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Here are some of the under the surface things that comprise the bottom of the iceberg that everyone does not see:

Dedication

You need to be focused on becoming a pro trader. Your belief must be that strong so that you won’t divert from your goal.

Hard Work

Hard work always pays and so you should work hard continuously and not let yourself give up. You need to spend more time in front of the charts to analyze price behaviour.

Good Habits

No matter what happens, just follow your trading plan. Likewise never break your rules of risk management, and avoid the FOMO factor.

Therefore, you need to follow these habits in your trading journey. Do them rigorously and consistently and they will become a natural part of your life.

Disappointment

In your trading career, you need to accept that a system may fail no matter how hard you try. Occasionally things will fall apart anyway.

You will face losing streaks and your strategy seems to be not working anymore. However, you need to believe in your trade setup and avoid any kind of disappointment.

Failure

As a newbie trader, you may inevitably blow a couple of trading accounts. You will spend time on strategies and techniques that do not work. Occasionally you will fall. If so, stand up and keep going.

Persistence

Keep doing what you are doing no matter what happens. Do not let others persuade you that you simply can’t make it. Even if things not going well, stay tough and strong.

Focus

Always know what is your end goal, know where are you going, and what is your end destination.

Flexibility

You must be flexible enough to adapt to any sudden changes in the environment. Keep your focus on the goals that you set learning to adjust to the changing circumstances.

Consistency

Remember one crucial thing you will not get what you desired immediately. So, keep trading with the same system again and again, until your goal is achieved.

Overnight success does not exist in trading. To become a consistently profitable trader be ready for years of struggle, failure, and pain. And so do not be afraid, it is worth it.

8 Golden Rules of Successful Traders Follow to Make Insane Profits

Focus on One Single Trading Setup

One thing that most unsuccessful traders try and do is switch between strategies constantly. In fact, you’re a stepping stone for failure.

Furthermore, you need to understand the concept of probabilities. That may help you to comprehend the reasons why a single strategy will work.

Any strategy is not going to have a 100% win rate, so first, you should attempt at getting 50% of your trades right.

Moreover, you also need to keep your RR ratio to at least 1:1.5 to be profitable. Jumping from one strategy to another will make go round and round. It will never let you move forward in the right direction.

Less Trading, More Learning

Many traders have the conception that spending countless hours in front of the screen looking for potential setups is how it should be. However, that is completely wrong in my view.

I spend minimal time now looking at charts and set-ups, I highlight key levels I want to look at, along with alerts, and simply wait for the market to head there.

Time spent looking at charts should be simply for education and mastering your strategy through backtesting or simply understanding previous data.

Neutralize Your Emotions Before Trade

Trading psychology is the most critical aspect. I strongly believe that emotions in trading can be one of your greatest enemies. As it can lead you to failure even after some initial success.

Even being overconfident also leads you to take irrational decisions if you let them.

Those emotions will make you believe you are better than the markets, or that you can outsmart them. Ultimately leading your successful trade to turn into a failure.

The same can happen when you feel the opposite and lack the confidence to enter another trade due to a loss, or think have feelings of doubt.

So, it is always good to approach with a completely neutral mindset. Once you understand that your path to becoming a successful trader becomes so easy.

Affirmations Are Great

Write the goals that may help you in every aspect of your life and not just trading. It is very crucial to pin down your goals in order to manifest them to make them real.

Your ideas and thought process first begin in the mind itself, and then come into the physical.

Affirmations help you to solidify your goals. Write your goals daily in order for your mind and yourself to know exactly what you are looking for.

Every single day, you need to read your goals aloud, and envision them in your mind with every bit of detail possible in order to bring them into the physical.

Chill Out

Don’t trade in panic in your trading journey, and believe me you will fail miserably. People want to master trading in a few days. Remember, trading is pure business and not gambling.

Patience is the key to success in trading. You need to wait patiently to trade and wait for the right moment.

If you are going after trading as a career then first chill out. Keep your mind cool and only then you can make an informed decision. The more you rush, the more you lose especially in stock markets.

Handle Your Trades Like a Robot

You need to handle your trades just like a Robot. No emotions just follow your strategy rules without any stress.

So, never touch Stop Loss. If you move your stop, just ask yourself why? You will find out that only because of fear of losing your money, do you keep moving or even not put any Stop Loss. Losses are a part of trading and so accept your loss and let the trade stop.

Also, don’t leave trades behind out of fear. Before you place a trade, have confidence in your strategy. You know that your strategy has a decent win rate and also has a good risk-to-reward ratio.

So, you should not leave trades behind out of fear, because they can be the ones that perform the best and make up for the losers.

Another critical thing is to exit your trades at the right time. Many traders have trades that are in profit, however, due to greed they still end up not profitable.

You must have a proper exit plan. Always remember, the MTM profit on a trade is not yours until it’s closed.

Manage Your Risk Properly

You’ll fail to generate consistent profits, even if you have a great strategy that has a high win rate. Not managing risk in your trade is the single greatest thing that holds you back from success.

So, you have no idea how important is to manage risk until the day you master it.

Traders may have awesome strategies, however, without appropriate risk management, everything falls apart.

In the initial days of my trading career, I have overleverage on many trades and the result was simply a disaster.

Because I was overconfident and greedy and finally blew my account. So, properly manage your risk, and when things are not going well it is better to exit.

Do not marry your stocks and blow your account in just one trade. Your prime focus is to manage your trades and mastered them.

Even with an average strategy, you will do much better than someone with an exceptional strategy having no risk management.

Maintain Your Trade Logs

Lastly, you need to maintain your trading performance. These help you to find the mistake and improve them.

Maintain logs like why and where you have entered and exited the trades. Whether you have maintained a better risk to reward ratio.

A trading journal is a guide that helps you to determine the common mistakes you’re doing. Honestly entering each piece of information in your trading logs is the key thing.

If you are really serious about trading, then you need to appropriately identify all your flaws and must follow these golden rules of successful traders.

Happy Trading

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About Ratan Kumar

Ratan Kumar, an enthusiast stock market trader & blogger. He is the founder of akme. Forecasting stock market moves with the use of technical analysis since 2008. For the technical trader & investor, new or experienced, he provides legitimate and valuable advisory from day trading to long-term investment horizon and helped thousands of investors to make money out of the stock market.

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