The only rules you need to start being a profitable trader

The growth of a trader is an exhausting journey. The market hits all the technical and psychological weaknesses we have one by one. It causes losses and painful emotions. It’s not easy to become profitable trader for suer!

By technical unpreparedness, I mean a broader preparation for trading: in particular, for managing the sudden situations that can occur in the market. Most traders start by focusing on the promise that the markets make and neither want to nor know how to or think it is important: that the markets can take any money quickly.

That’s usually the first painful lesson. And after it comes the next ones, except that a very large number of them are…in my opinion, unnecessary. Especially the most painful ones, because they can break any trader’s career.

Lack of preparation leads to losses and psychological pain, which depending on the situation may lead to attempts of revenge trading from where it is a direct way to even greater losses and margin calls.

The solution is: proper preparation.

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How to become a profitable trader in this regard?

I will show it on the example of a new system, which a good trader just learns.

Preparing for “all eventualities” should consist in reviewing a few dozen, a few hundred (that would be much better) signals backwards, focusing on those that looked good, but in the course of time something went wrong. In particular, pay attention to:

  • larger losses,
  • longer series of losses.

What to look for?

  • Maybe there is a factor that is causing the losses and repeating itself?
  • Do the losses or series have something in common?

If so, you can think about how to eliminate it.

And on the other hand. Maybe there is some factor that repeats itself with the best gains? It may be worth focusing on it, even if the author of the system overlooked it or didn’t know about it.

Take into account that several factors may occur together in the future and, for example, cause panic on the market, a much larger movement, and thus a much greater threat of loss.

In addition to “technical” preparation (knowledge of the system and markets), we also have mental preparation. Here, it is best to refer to what the best traders do, preferably those at the highest level, i.e. multimillionaires and billionaires. I will certainly write more on this topic in the future.

PS. And in the meantime you might be interested in a book with interviews with the best traders in the world. I talked to them about their way to the top, their challenges, their successes and how they dealt with problems in the market: “Conversations with Forex Market Masters”:

How to make more money on trading: glass ceiling in trading

One trader told me that he has been in the market for a few years now, but he had to revise his expectations. He want to be more profitable in trading. He is frustrated that he can’t earn more and that the dreams he started trading for won’t come true. He earns well, but not enough to live the lifestyle he would like.

He thought about buying himself an expensive yacht, it was his goal, a status symbol and a new lifestyle, but his level of earnings would not allow that for at least a few more years.

He asked if I had any ideas on how to become more profitable in trading and  to deal with the glass ceiling in trading. He knows that I know a lot of traders who make great money and he was hoping I could give him some suggestions. Indeed, I could…

How to become even more profitable trader

In the big picture, what works is a trading development program. These are the things the best traders do when they want to get even better.

  1. They identify their trading advantages and try to strengthen them. As a side note – most traders have no idea what their advantage is at all. Below is some advice on how to find it
  2. They learn new tools and completely new systems to expand their toolbox. Examples of such trading tools are described below
  3. Identify their technical and psychological weaknesses, and work with them. Some notes below.
  4. Study other successful traders. This is a great solution, and it’s also a fun way to spend your time: I recommend reading all of Jack Schwager’s books and my own “Conversations with Forex Market Masters” (interviews with trading stars). Here you will find details:
  5. They look for traders-mentors who have gone this way before them and succeeded.
  6. Analyze their weak points, those that brought them the biggest losses.
  7. Analyze their best trades to find what they have in common and duplicate them.

What are the advantages of profitable traders?

Most traders have no idea what their advantage is. This is a good place to start. Start by asking yourself:
What do I do differently, better than others, what can I use better, what information do I have access to before others, what is my valuable uniqueness as a trader?

Examples of new trading tools to become a more profitable trader

Examples of new trading tools to become a more profitable trader 

Example: if a trader specializes in a certain type of trade, e.g. a triangle breakout with good fundamental data, it may be worthwhile to look for a scanner to simplify the analysis

Idea 1: A scanner that selects companies with “good fundamentals”, from which (e.g. from a group of the best) the trader can choose the best technical situation.

Idea 2: A “triangle” scanner that selects the best technical situations, the best “triangles” from which the trader can again select something.

Example 3: A combination of scanners 1 and 2.

Example 4: What in example 3 plus the strong momentum that has come into the market.

The key will be to limit yourself to only dealing with the best market situations out of the best possible ones.

PS. How to identify your strengths and weaknesses as a trader

In addition to boosting trading qualities, a good trader must work on his weaknesses. Identifying and working with weaknesses is a very big topic, there is so much of it that we decided to prepare a big training on this topic. If interested, please write to us for current information: digital[@] and subscribe to our newsletter – in addition to a free copy of the magazine you will get the latest news as one of the first.


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