You do not need to be super intelligent and use complicated strategies to be a profitable futures trader. In fact, profitable traders just did a few things differently than regular trader.
In this article, I going to share with you a few small tradings tips that have TREMENDOUS boost on your trading performance.
One of the reason why traders unable to find high probability winning trades is because they tend to skip this step: read & understand market structure seriously.
Before you move into smaller time frames chart to hunt for trade signals, you must always read the daily / weekly / monthly chart to understand the big picture & current market structure.
Price is either Up Trend, Down Trend or consolidation. These price movement keep repeating over and over again. As traders, it is our first step to a profitable career if we can identify the market structure.
Maybe this is the most important trading skill. As traders, patience and self discipline are crucial. You must trade like a sniper, waiting only for the best setups. In my earlier year of trading, I often encounter those days when there are no trades signals, I easily got bored and forced myself to enter a trades. Unfortunately then, I lost too much money when I wasn't supposed to trade .
Then, I came up with a list when I should not trade:
1. When I don't know where is my stop loss.
If this trade do not have a reasonable risk & reward ratio. Then you should pass.
2. When the price already move away.
If you spot an entry which is too late, don't chase and sacrificing the risk & reward ratio. Remember, cash is a position too!
3. When you look for other opinions
The best trades is right in front you & you very clear about what you should do.
4. When you just want to end the month/week green.
In this case, you must be extra cautious when making decisions It's tend to make an impulsive decisions
5. After a huge loss or profit.
Accept that we are human with emotions. After a huge loss or profit, you should step back and calm down. Emotions trading always screwing up your account.
When you are in a good trade, don't simply aim of an unrealistic target. You might end up with a good trade but when thing turning around you left nothing or worst.
Be realistic, look at your chart and look for major support & resistance area.
Lastly, Trading is an journey. You have to make sure that you work on it built your trading career in solid foundation.
If you want a clear idea on how to do it, join our TFM Futures Program where we help you get started and earn consistent profit in Futures market.
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