I’m here to share some important insights that can help you on your journey to becoming a better and more consistent trader. Let’s dive into some key aspects of trading.
Psychology, Position Sizing, and Trade Management
Psychology is one of the most critical factors in trading. Many traders overlook this, but success in trading often hinges on your mental state. One effective way to reduce psychological pressure is by reducing your position size (lot size).
The larger your trade size, the more uneasy and stressed you’ll feel, making it easier to make mistakes. Therefore, trade with smaller sizes to stay calm and objective. The appropriate lot size varies from person to person, but as a general guideline:
- For a $1000 account balance, open positions with a maximum of 0.1 lots. Anything larger than that is excessive and significantly increases risk.
Personally, I use Stop Orders (Buy Stop and Sell Stop) with predefined Stop Loss (SL) and Take Profit (TP) levels.
Once the pending order is executed, do not adjust the SL or TP levels. Let the price move toward one of them. Adjusting SL, in particular, is a bad habit many traders fall into.
Diversify Your Brokers
As the saying goes, "Don’t put all your eggs in one basket." It’s wise not to deposit all your money with a single broker. Even large institutions with solid reputations like Lehman Brothers, Refco, MF Global, and PFGBest have collapsed.
The removal of the CHF Peg in 2015 also caused many retail brokers to go bankrupt, leaving many traders with negative balances. Not to mention offshore brokers that suddenly disappear—a common occurrence. Therefore, even if your deposit is only a few hundred dollars, start getting into the habit of diversifying your brokers.
Here are a few brokers I use:
1. IC Markets Global
- This broker is quite popular and widely used by many traders.
- Offers a wide range of trading instruments, multiple deposit methods (including cryptocurrencies), but unfortunately, withdrawals are only available via bank transfer dan cards.
Click https://icmarkets.com/?camp=84028 to register with IC Markets Global and start your trading journey today!
Click - This broker is gaining popularity and has excellent customer service.
- Provides various deposit and withdrawal options, including cryptocurrencies.
- Comes with Negative Balance Protection.
- Click https://portal.blueberrymarkets.com/en/ ... zmvoruh9uq to register with Blueberry Markets and start your trading journey today!
- This broker is quite popular in Southeast Asia.
- Offers tight spreads, fast processing for deposits and withdrawals, and multiple payment options.
- Also features Negative Balance Protection.
- Click https://one.justmarkets.link/a/5940pvmf1n to register with JustMarkets and start your trading journey today!
Aside from trading, my passions include marketing and entrepreneurship. That’s why I include affiliate links here (hehe). If you enjoy my content, you can support me through these affiliate links. If you sign up with these brokers through my affiliate links, I will earn a small commission from the brokers at no additional cost to you. Commissions and spreads remain the same.
Trading System
This is another crucial aspect for traders. A good trading system is one that has clear criteria for when to enter and exit the market.
Bruce Lee once said:
"I fear not the man who has practiced 10,000 kicks once, but I fear the man who has practiced one kick 10,000 times." Stop chasing the "Holy Grail" in trading—you won’t find it. There is no such thing as a perfect trading system. Amidst all the sophisticated approaches like quantitative trading, high-frequency trading, market making, and algorithmic strategies, the truth remains: the simpler a trading system is, the better it performs. This is especially true for individual traders like us. Focus on mastering the basics rather than overcomplicating your strategy.
Free Forex Signals
I will regularly share free forex signals with you. You can test them first using a demo account to see if these signals align with your trading style.
Disclaimer: Use at your own risk. Trading always involves risks, so ensure you fully understand before applying these signals to a live account.
This trading system is built on simplicity and discipline, ensuring that traders can execute their strategies with clarity and consistency. Here’s a clear overview of its key components:
Order Entry
The system uses Buy Stop orders to enter long positions and Sell Stop orders to enter short positions. These pending orders are placed at specific price levels above (for Buy Stop) or below (for Sell Stop) the current market price, ensuring trades are only triggered when predefined conditions are met.
Risk Management
A Stop Loss (SL) and Take Profit (TP) are always set when creating the Pending Order. This step is crucial for managing risk effectively and securing profits, helping to eliminate emotional decision-making during live trading.
Daily Reset of Pending Orders
If the Pending Order is not executed by the end of the trading day, it should be canceled. On the following day, a new Pending Order is created based on the updated criteria and market conditions for that day. This daily reset ensures the strategy remains aligned with the latest market environment.
Trade Duration
Once a pending order is executed, the trade remains open even if the day changes. The duration of the trade can vary from a single day to several days, depending on market conditions and the achievement of the predefined targets (either the Take Profit or Stop Loss level). This approach allows the market to move naturally without unnecessary interference.
By following these principles, the system emphasizes simplicity, risk control, and adaptability, making it suitable for traders looking to build a disciplined and consistent trading routine.
Thank you for reading, and I wish you success on your trading journey!
If you have any questions or want to discuss further, feel free to comment.
