Understand the psychology of the trade: never believe you are smarter than the markets as the markets will always win.
- Acquire the knowledge on how the markets truly work then test and retest your ideas and concepts until you feel confident.
- Develop a working knowledge of what types of entry and exit orders work best.
- Understand how to manage risk by employing the use of options strategies.
- Pick a strategy that matches the market conditions.
- Manage the strategy. You should always know what your next reaction point will be and what prompts you to take it.
- Watch what moves. To be successful, you have to become a media hound.
- Integrate fundamental, technical, and sentiment analysis into a real world trading approach that enables you to best understand market performance.
- Specialize in one sector and one strategy at a time.
Give yourself the winner’s edge by always continuing to actively pursue the learning process.