It’s OFFICIAL!!!!! I have been trading live for 1 year now and have survived! Currently my account is down just $1200 throughout this year of madness but I consider this a success given the cheap education for many more lessons learned. Today I want to share with you 40 Lessons that I have slowly been accumulating throughout my journey that I have found to be important.
As my time continues on this lifelong endeavor, the lessons will only grow. Until then, here is some of my newbie wisdom!
40 Trading Lessons
My Survival Guide
#1 Cut losses quickly – especially when risk is hit
#2 before you place your first trade, call your broker to see if you have permission to trade extended hours
#3 always double check to make sure you are COMPLETELY out of a position- it sucks thinking you canceled but your down over 10%.
#4 be happy taking singles- they add up faster than you think
#5 focus on mastering 1 setup at a time – 2 max
#6 Losses add up too – this is why you focus on mastering 1 pattern at a time
#7 wait for at least 10% panic in the morning before you dip buy listed multiday runners – ideally 20%+ for OTCs
#8 it is good to make video recaps of your mistakes and success and mindset as reviewing them and sharing helps yourself and others learn too
#9 it is good to feel guilt when making a mistake so you remember not to make them again
#10 the beginning of trading is all about making mistakes and learning what NOT to do
#11 learning about short selling has increased my success dip buying
#12 keep practicing successful habits, it may suck in the beginning, but you WILL get use to it and you WILL be happy you stuck with it. I am referring to waking up early for the market, setting a routine, and forcing yourself to make that daily watchlist even if you think you can slack for just one day, NO, you CAN’T!
#13 Trading makes you the most vulnerable. You have to understand yourself and learn about yourself and be honest in order to trust yourself to succeed in the markets.
#14 keep an eye on settled funds. DO NOT trade with “good faith” trades on Etrade. You will be suspended for 90 days!
#15 don’t dip buy a falling knife, wait for more level2/chart confirmation of possible bounce on panics.
#16 Trading Psychology is important. I recommend Mark Douglas Books and YouTube videos – the daily trading coach by Brett Steenbarger
#17 Focus on the Process and the patterns then the money will come
#18 No one trade matters
#19 Always go into a trade with a plan; risk/reward
#21 post your trades and review them publicly to hold yourself accountable
#22 buy weakness, sell strength
#23 Video record setups so you can review and study them after hours
#24 Market Maker Inquiry/ or request a trade review so your broker can review for trade disputes
#25 Pay attention to Level 2 on OTCs – its very important!
#26 ThinkorSwim has “On Demand” feature where you can replay trading days. Use this to review wins and losses. Study how you could have done better. Always Learn Something to improve.
#27 After awhile the same routine becomes a successful routine
#28 Its fine to buy the multiday breakout or the dip after and sell into strength to slowly build your account then slowly hold as time and practice goes on.
#29 size up overtime
#30 want winners bigger than losers and more winners than losers
#31 The Trading Challenge Lifetime was the best decision I could’ve made
#32 size down during losing streaks
#33 Different setups require different mindsets.
#34 % loss doesn’t always matter as long as you calculate an appropriate $ risk
#35 sizing in properly according to plan helps you gain trust in trading your plan
#37 don’t forget support can become resistance. Don’t buy into that resistance as its not good consolidation
#38 get comfortable with losing trades. Youre not a bad trader it just makes you into a better one.
#39 focus on stress free setups. After trading enough stressful you learn the difference between ideal and not ideal
#40 never stop learning. This industry is about adapting. Either you Adapt or you Perish over time.
My schedule is busy so I apologize for the quick and to the point post. Hope these 40 Trading Lessons help you as much as they are helping me! By no means is my education over and by no means are these the only important lessons out there; but this is a great start to a lifetime of lessons to come and I look forward to writing my 2 year follow up!
Leave comments here or on my Twitter – let me know some of the rules/lessons that have helped you during your trading journey!