HOW TO BECOME A TRADER THAT MAKES PROFIT

Today I want to show you how to become a trader that makes consistent profits in the market. It will be kind of you to leave me a comment to show that you appreciate the knowledge I am giving you here on this blog.

The concern is about profit

Of course as you all know the concern of every trader is to make profit; Abi you won lose before? Nobody wants to lose in his trades as its psychological impacts also do reflect on your trading result. Alright let’s do this, shall we?

Focus on the Risk not the Profit

This is the aspect my students often find difficult to understand. They think that being a consistently profitable trader in the forex market means that you just have to focus on the profit and forget about the risk involved. This is not the case as the market isn't designed to suit you. Yes o! 

The market isn't designed to suit you; rather the market does and will do what it wants to do. Period! The best and most effective way to approach the market is from the standpoint of risk! Risk!! Risk!!! Do not place a trade without first understanding what your risk should be and later; your reward. Ask yourself; what if this market becomes a loser? How will my ego take it? What is my dollar risk vs. my dollar gained as I place this trade? Focusing on the reward rather than your risk first, will becloud your judgment of the market’s perception. 

Always look at the position size you want to trade and check your tolerance level; Man am I willing to lose this amount? I guess this is not a new statement; always risking amount that you are comfortable with loosing. Moreover, the risk mentality helps you not to lose a trade. Just know that anybody can lose a trade and that includes you; when you know this, then your judgment will be right most of the time while analyzing the market. Do not cloud your judgment thinking you cannot lose. In fact, this is how to lose faster! More on this in another blog post.

Trade with a Plan

Oh you think because you have become a consistently profitable trader, you can now do away with your trading plan, huh? Well, for me I have seen traders lose all their profits into the next fifth trade they took. This is because they thought the trading plan is not a decider when it comes to profiting. 

Whether you are a price action trader like me, a pattern trader or whatever trading method you might have chosen; know this that you can’t be successful on the long run if you sideline your trading plan. Instead of sidelining your trading plan, I think you should upgrade it time after time. This is the way professionals think. Don’t ever allow your 5 straight wins to give you a false confidence and make you forget your trading plan. Don’t! Your one loser could be worse than your 5 winners (i.e. 1R>5R).

Trade with clean not messy charts

There is something about the ego of humans. When we have messy equations or complicated write ups, we then think we are doing the right thing. But we forget to recognize the truth; that being simple is the best way to approach life.

It doesn’t matter what type of trader you have chosen to be, but no matter what don’t make your chart look so crowded with so much indicators that you don’t even need but may end up confusing you. I see a lot of friends (not my students) mess their chart up that its so difficult for them to even see the trade they are into….. A lot of indicators like; stochastics, MACD, Bolliger band, trend lines, Fibonacci, and on top of all that, there is a moving average both SMAs and EMAs… lol… too bad!

Of course when you tell someone that you have all this tools on your chart, it makes you kinda super right? Do you want to be a professional trader? Then do all you can to be simple! This is why in our trading course we emphasis that you become a Price Action Trader. I don’t use indicators of any sort, EAs on my charts and so does my students and team members. If I do ever want to use an indicator, I only consider a couple of 8 and 21days EMAs and a 50% retrace fib levels. It may also surprise you to find out that I don’t trade the news. I.e. I don’t read all the fundamentals before placing orders. Nop! I just read PRICE ACTION. You should too!

I think I my next post I will be showing you what is price action and why you should be a PA trader and really master that method.

Please if you love what you just read do leave me a comment to show you love this blog and share also on social Medias.

Until my next post;

I am Wealth Peters

CEO and head coach, Pips Akademy.

Saying: Be a great Trader!