The Key To Winning

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trader_dante

Well-known member
Aug 18, 2005
4,535
1,457
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www.trader-dante.com
#1
If you are new to this game you should understand one thing first.

THE KEY TO WINNING IS IN PLAYING GOOD DEFENSE.

Protect your capital first and foremost.

If you do not have capital, you cannot trade. If you cannot trade, you cannot win.

That is as simple as it gets.

The biggest mistake new traders make (and many experienced ones too) is that they focus on the potential profit from a trade before they consider the loss.

YOU MUST TURN THIS THINKING AROUND.

Always consider what your loss could be FIRST.

This leads me onto my next point.

I see many talented traders operate in the markets day in, day out. The large majority of them have one VERY big problem.

THEY DO NOT KNOW WHEN TO STOP.

They say prop traders have access to better charts, faster execution, lower commissions, tighter spreads, faster news etc etc but the only real ADVANTAGE they have over the trader who does this part time (or full time from home) is that they have, for the most part, OBJECTIVE AND RIGID RISK MANAGEMENT that is overseen by the firm.

In other words, they are told when to stop.

If you are trying to get ahead in this business, set yourself a daily stop limit that when hit, stops you out for the DAY and have the discipline to follow it.

Take the next day off and come back the day after.

You will come back to the market level headed and will not revenge trade because you will have had time to get the loss out of your system.

I have been fortunate enough to sit on both sides of the fence - as a part time trader trying to build my account whilst in a 9-5 and now as a professional.

What I have said above is the best piece of advice I can give anyone on this forum.
 
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FXSCALPER2

Well-known member
Jan 27, 2006
964
280
73
#2
If you are new to this game you should understand one thing first.

THEY KEY TO WINNING IS IN PLAYING GOOD DEFENSE.

Protect your capital first and foremost.

If you do not have capital, you cannot trade. If you cannot trade, you cannot win.

That is as simple as it gets.

The biggest mistake new traders make (and many experienced ones too) is that they focus on the potential profit from a trade before they consider the loss.

YOU MUST TURN THIS THINKING AROUND.

Always consider what your loss could be FIRST.

This leads me onto my next point.

I see many talented traders operate in the markets day in, day out. The large majority of them have one VERY big problem

THEY DO NOT KNOW WHEN TO STOP.

They say prop traders have access to better charts, faster execution, lower commissions, tighter spreads, faster news etc etc but the only real ADVANTAGE they have over the trader who does this part time (or full time from home) is that they have, for the most part, OBJECTIVE AND RIGID RISK MANAGEMENT that is overseen by the firm.

In other words, they are told when to stop.

If you are trying to get ahead in this business, set yourself a daily stop limit that when hit, stops you out for the DAY and have the discipline to follow it.

Take the next day off and come back the day after.

You will come back to the market level headed and will not revenge trade because you will have had time to get the loss out of your system.

I have been fortunate enough to sit on both sides of the fence - as a part time trader trying to build my account whilst in a 9-5 and now as a professional.

What I have said above is the best piece of advice I can give anyone on this forum.

Good advice but why is it THE key to winning?
 

trader_dante

Well-known member
Aug 18, 2005
4,535
1,457
173
www.trader-dante.com
#3
Good advice but why is it THE key to winning?
Because I believe that poor risk management is what prevents most traders from winning.

I know very, very few traders that lose money because they can't identify a good entry.

I know countless traders that lose money because they either overtrade, stake too much money or run their losses.

ELIMINATE THOSE MISTAKES AND YOU WILL WIN OVER TIME.

I am absolutely certain of this.
 

Hoggums

Well-known member
Jan 24, 2006
2,170
877
123
#6
Totally agree.

Most people lose because they make lots of small gains and then get wiped out by a big loss.

The trick is to reduce that loss - that actually means reducing your win rate also as a consequence.

My typical trading quarter is days and days of plugging away - small gains, small losses getting nowhere, then the big trade(s) come and that's when you make the money. Every trade you make you are thinking it could be the big one - the trick is to stay alive while waiting for it to arrive.
 
Jan 6, 2007
1,303
164
73
#7
The Key to Winning

Do not think for one mili second about winning EVER !

If the thoughts surface in the moment its high probability your ........not right and its then you need to be on the defensive and play a limited game and not try to play to your full capabilities, do whats required and asked of you, but no more.

Great performance is usually a result of being pushed to act, if you have the talent thats when it will surface and not before imho and experience, you have to draw your mind back to the moment and your next action all the time when things are not going well, you do this until the very action is YOU and no other possibility exists.

Most I do not think ever get 1/2 way to whats described above, maybe achieve it from time to time for short periods of time in their lives etc, to do it consistantly day in day out is very hard and an individual needs to be driven and very well motivated imho.

I have not, I know that. Knowing tips the balance in your favour a bit more and makes improvement possible ;)
 
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