Beyond technical analysis, trading is a formidable art that is worth spending time to master. While trading is a high-yielding skill once mastered well, it is far from an overnight get-rich-quick affair! Many traders quit after one too many losing streaks, having failed to realize that beyond the technical analysis involved in the charts, there lies a greater contender to be dealt with — your very own emotion and mindset!

#1: Patience Is A Virtue

Screenshot of coinmarketcap by author
The road to success in trading isn’t about watching charts all day or rushing into trades impulsively; rather, it is more important to know when to act and when to wait. For example, rather than FOMO-ing into a trade, wait for a retracement and set a trade alert according to your technical analysis to help guide your subsequent actions. This is vital to ensuring that you have the best trade set-ups before entering a trade.

#2 Learn From Your Mistakes

Those who do not learn from history are doomed to repeat it.

Extrapolating from the famous adage above, it is of utmost importance to treat losses as, albeit expensive, fruitful lessons in your path to becoming a successful trader. As fallible human beings, we tend to forget our mistakes overtime; therein lies the importance of maintaining a trading journal to record both your winning and losing trades, ensuring that you learn from both your triumphs and your setbacks.

#3: Never Lose Money (Or Rather, Cut Your Losses!)

Rule Number 1: Never lose money.
Rule Number 2: Never forget rule the first rule!

This is perhaps one of the most famous quotes of Warren Buffet; indeed, the importance of capital preservation cannot be overstated. Before entering a trade, you must know your exit strategies for both right and wrong scenarios. The key is to accept losses gracefully, move on, and focus on defining your risk-to-reward ratio. Be clear with your trading plan and stick to it — do not negotiate your stop-losses if your trade goes against your favour, because, then again, those are emotions coming into play!

#4: Own Your Outcome!

In trading, you can’t control market movements, but you have full control over your actions. Taking responsibility for your choices, whether good or bad, is the path to learning and growing as a trader. Blaming external factors will not lead to success.

#5: Consistency Over Motivation

Forget motivation and goals; it’s fleeting! Instead, prioritize discipline. Small daily wins and consistent routines will lead to long-term success. Success isn’t about the glory moments; it’s about the daily grind, the early mornings, and the late nights!

#6: Adapt or Fail

One size does not fit all in trading. Market context dictates the strategies you should employ. Be flexible and willing to adapt to new market situations. React to what the market reveals, rather than imposing your preconceptions!

#7: Trading is a Business

Approach trading as a business venture. Set quarterly goals, develop a trading plan, follow a set of trading rules, and meticulously track your progress. This business-like approach ensures that you take your trading seriously.

#8: Learn, Act, and Review

Passive learning, such as reading books and watching videos alone won’t make you a successful trader. Rather, you must act on your knowledge! Continuous learning, implementing strategies, reviewing trades, and making improvements are the key steps toward trading success.
A good starting point is to practise trading with a demo account, or on platforms such as TradingView that offers a replay tool, so that you can test your trading strategies on historical data.

Final Thoughts

Indeed, trading is journey of lifelong learning that demands great motivation and discipline. May this article serve as a reminder for all of us including myself to stay disciplined throughout the entire process of trading. Happy trading, and may the odds be ever in your favor!
If you are interested to learn more about trading, feel free to check out my previous articles below!
Trading 101: How To Trade Supply & Demand
Trading 101: Unlocking the Secret Rules of Support and Resistance Levels
Stablecoins Unravelled: Are They Really Stable?
Automating Trading With Grid Trading Bots

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