Becoming a Consistently Winning Trader

If you want to become a consistently winning trader, then there are a specific set of tips and rules that you absolutely need to follow. Coming from personal experience, one of the worst things that you can do is to ignore any of the rules that I am about to discuss below. The fact of the matter is that trading is of course not easy, but it can be very lucrative if you do it right.

The issue is of course that most newbie traders simply start trading without any kind of set plan or method. Most newbie traders also don’t know how to manage their money and to manage risk levels. Personally, I invested about 95% of my capital into trading, and unfortunately, I lost more or less all of it. For me, I had to learn from my errors the hard way simply by doing.

However, I am here to provide you with all of the rules and tips that you need to know to become a consistently winning trader. My goal is to help you avoid all of the big mistakes that I made in the beginning so you can get right to being a consistently winning trader.

winning trader

The Right Trading Environment Makes a Difference

One of the most important things that you need to realize is that the environment you trade in makes a huge difference period now, we aren’t necessarily talking about your Home Office and having a quiet space to trade in, although that is certainly important . What ‘m actually talking about is the environment that you trade in in terms of pressure and your mindset.

In other words the simple reality is that if you feel pressured or forced to trade, and moreover if you feel pressured to make money, then you are likely to make bad trading decisions.

People usually don’t operate well under pressure, and this definitely goes for trading. If you want to become a consistently winning trader, then your trading needs to be relaxed and fun, but also focused and concentrated. However, trading under the pressure of being forced to make money is not going to lead you anywhere. This then brings us to our next point.

Maintain a Stable Source of Income

If you plan on becoming more consistently winning trader, then you can’t be faced with a ton of stress and pressure, and this goes for financial pressure too. In other words, you can’t just quit your day job and start trading in the hopes that you will instantly be a consistently winning trader.

The unfortunate reality is that as a newbie trader, you are likely to lose a whole lot of money in the beginning. For this reason, you can’t rely on trading for your source of income. You need to feed your children and pay for your mortgage, which means that maintaining a steady source of income is crucial.

Therefore, until you are confident that you can make enough money to support yourself and your family through trading, you should not quit your day job. Having your consistent source of income will allow you to focus on your trading skills and techniques, and to learn how to trade, rather than being forced to focus on making profits to support yourself. Once again, this does have to do with feeling pressured and being in the right environment trade.

Engage in Proper Risk Management

In order to become a consistently winning trader one of the most important things that you need to do is to manage your risk levels. This starts out at a very fundamental and basic level, by which we mean that you need to ensure that you still have enough money leftover after trading to support yourself. This means that you should never invest more than 50% of your total net worth into trading.

Some trading newbies will invest way more than that, sometimes every single last penny they have period of course, this means that if you end up losing all of your money, then you have nothing leftover to support yourself with. This means that you need to start out small, and as you gain skill and confident and as you slowly become a consistently winning trader, you can then add more and more money to your trading account.

Money Management Matters Too

Not only do you need to manage your risk properly, but you also need to manage your money properly if you plan on becoming a consistently winning trader. Money management comes before risk management in the sense that money management also applies to the rest of your life.

If you are someone who has trouble making and keeping budgets, then you are going to have a very hard time managing your trading account. You first have to know how to engage in basic money management in order to be able to manage your budget for a trading account.

Create a Solid Trading Plan

If you want to be a consistently winning trader, one thing that is very important is to have a solid trading plan. Yes, the trading strategies you use do matter here, but we also need to determine is when to buy and when to sell, which markets to trade in, why you want to trade in those markets, as well as how to engage in proper risk management.

In this sense, your trading plan is much like a business plan that lays out every single step of the process from the beginning to the end. This way, you can maintain a certain level of consistency, and when it comes to being a winning trader, consistency is key period if you are consistent with your trading plan, then you are much less likely to make errors that will lead to you losing trades.

Create Daily Market Watchlists

As a newbie who wants to be consistently winning trader, one of the biggest mistakes that you can make is to just wake up in the morning and trade randomly. You want to create daily MarketWatch lists and weekly MarketWatch lists of the assets that have the biggest potential to provide you with profits.

You want to check your economic calendars, you want to check fundamental news, and you will also want to engage in technical analysis. There are also some great filters that will provide you with information about the biggest stock market movers of the day. You always want to judge the potential of any given trade before you make it.

Correct Your Errors

The other tip that we can leave you with here today in order to be a consistently winning trader is to always analyze your results, especially if you ended up losing a bunch of trades. The fact of the matter is that if you don’t know where you went wrong, then you can’t make the appropriate adjustments to start becoming a consistently winning trader.

We definitely recommend taking a closer look at all of your losing trades, comparing them to each other, and looking for common errors that you made throughout all of them. If you can find the common errors that you make and then adjust for them, then becoming a consistently winning trader is much easier.

Being a Consistently Winning Trader

If you follow all of the rules and tips that we have outlined above, then your journey to becoming a consistently winning trader should be much easier. Remember that it does all start with a good education, so we definitely recommend taking a trading course to provide you with all the necessary skills and tools that you need to start being a consistently winning trader.