Einstein said it best,
“Insanity is doing the same thing over and over again and expecting different results”
If you've just start trading, then you're excused and you're very lucky to be reading this today.
However, if you've been trading for a number of years and your portfolio is still in the red - it's time to change that.
The truth of the matter is…
To be a successful trader you need to think and act differently from the 95% of unsuccessful traders.
And so, you'll need to adopt these three winning habits to move your portfolio from the “going no-where zone” into the profitable and green zone.
Let's get to them…
Winning habit #1: Adapt or die
The only constant the market undergoes is change itself.
And when the markets change, you need to adapt and change with it.
For instance… Since 2008, traders and investors have been more cautious trading and investing in the banking and finance sectors. We learnt that a rumble in the U.S banking stocks can have catastrophic ramifications with South African stocks.
And what about more recently?
Well, since Steinhoff’s 90% crash in the share price, traders and investors have been a lot more concerned of trading certain retail companies because of the possibility in the next collapse.
And so many traders have reduced the loss that they’re wiling to take by investing less in these kinds of shares.
So instead of risking 5% per trade, you might want to think of risking 1.5% up to 3% per trade.
Winning habit #2: Trade less and profit more
For some reason, most traders believe that the more they trade the more profits they’ll make. I can’t think of anything more further from the truth.
If this was the case, trading would be thumb-suck where anything you buy will be w inner and you’ll profit.
But we know this is not the case.
Instead, you need to adopt a very careful proven trading strategy that consists of:
Trading setup reasons why you’re getting into your trade
Risk levels and rules to mitigate your risks
Take profit levels
Finding this strategy that works for you is probably the longest part of the successful trading journey.
It took me five years to find mine and I’ve used it for the past 10 years.
Once you have your trading strategy, you’ll find that you’ll only execute trades when the system lines up. This will stop you from taking unnecessary trades.
In fact, my system only yields a trade once a week or so. And I’m still here.
I’m saving the third habit for next week’s article because I’m saving it for the most important lesson you can learn this year.
This will not only have an effect on your trading success but probably every aspect of your life.
Stay tuned and I’ll see you next week in the article “The most important lesson you’ll learn in 2018”…