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The stock market doesn’t care if you finished the fourth grade or have a PhD.
It doesn’t care what your gender is…or where you’re from…
…whether you come from money or are self-made.
None of it matters.
If your dreams are to make it in trading and you’re willing to work…
…I believe you have what it takes to unlock your potential.
I’ve seen countless students of mine change their life and their family’s circumstances because of the opportunities the stock market has provided them.
Today I want to share with you three principles I apply to stay consistently profitable in good and bad times.
I think they’ll help you too…
Principle 1: I Will Trade Scared To Make Trading Not So Scary
There’s an expression that goes: you’ve got to risk it for the biscuit. And while trading does involve risk, and most people who try it fail, there are ways to garner up the courage to stay in the game.
For example, I often tell my students: I will trade scared to make trading not so scary.
But what does that mean?
Active day traders need action if they want to quickly be in and out of trades. That often means trading some of the most volatile stocks. Get in at a bad price, and you will get crushed faster than you can blink. Of course, that type of volatility should scare anyone. And it does for me, even after 20 years and millions in the bank.
But it’s also that fear that makes me extremely cautious. I’m very quick to cut a trade if it’s not working in my favor. And I take my profits when I get them. I don’t let greed beat me.
Even though I’m trading volatile stocks, I do so in a manner of caution. I respect the market and what it can do to me if I don’t play by the rules. That’s why I stick to my trading plan…win…lose…or draw.
If you’re struggling to trade these highly volatile stocks or too scared to do so, that’s okay. It’s human nature. I would suggest trading smaller, just so you can see how things play out. Or even paper trade, if trading one or two shares is too much for you.
Either way, embrace the fear, and use it to trade smarter. Don’t let it paralyze you.
Principle 2: Less Is More
My life’s work is helping other traders achieve their goals and charity. I’m on the road nearly every day of the year. I’ve traveled to over 130 countries, and currently, I’m in Italy, living my best life.
Why am I sharing this with you?
Because some people believe that traders just sit in front of their screen, from 9-to-4, trading all day. And while I know a few who do that, it’s not my definition of financial freedom.
I’m usually trading on sketchy wifi and a laptop. I do this on purpose so I can stay focused. I’m just like a lot of people…
If I stare in front of the screen all day, I tend to overtrade. So I put myself in situations where that becomes difficult.
Furthermore, I focus on specific setups that have proven to work for me for years. So while there’s always action in the market, I can laser in on just a few setups. I might take one or two trades on any given day.
Applying the principle of ‘less is more’ will serve you well. I can’t tell you how often I hear traders get into bad setups, get battered, and then get gun-shy when a good setup presents itself because they’re scared to lose more money.
Of course, discipline in trading is not easy. But it’s something that must be mastered if you want to join the elite ranks, like my millionaire students.
You can improve your discipline by outlining the criteria for an A+ trade. If a setup meets everything on your checklist, trade it.
If it doesn’t, skip it. Or you could set a rule like, today I will trade two symbols tops. While I don’t like being that rigid, it’s not a bad practice for you if you struggle with discipline.
Principle 3: Show Up And Do The Work
While the idea of trading all day sounds miserable to me, that doesn’t mean I stumble into the trading day not prepared. In fact, the reason why I’m still around after all these years is that I set myself up for success.
Even to this day, I’m learning new things. And I’m constantly looking for ways to improve my strategies.
Early on in my career, I was known as a short-seller. Someone who would look to short crappy stocks that moved after getting pumped by promoters.
However, that game has gotten a lot more difficult because so many traders focus on squeezing shorts.
And while I have enough capital to endure a short squeeze, I know that many of my students who are just getting their feet wet don’t. One short squeeze can wipe them out of the game for good.
Heck, it happens to hedge funds that are well-capitalized. Remember Melvin Capital and that whole GME saga? They folded up shop after getting wrecked in that short trade.
Putting in the reps is vital if you want to be one of the few traders who crack the 7-figure profit milestone. So while I advocate trading fewer hours and being more selective, I expect my students to put in their study time.
Study other successful traders and their wins. Look at charts and patterns, and figure out why specific trades worked while others failed. Over time, you’ll develop some sick muscle memory.
If you need some help, click here to see how I can help you out.
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Image and article originally from www.timothysykes.com. Read the original article here.