Know exactly what you will look for before you start your trading day.
No guessing what the market is doing and placing trades at random. When a proven setup presents itself, you feel confident because you have prepared for every type of market behavior.
“The hard work in trading comes in the preparation. The actual process of trading, however, should be effortless.” – Jack Schwager
Develop a real strategy, where you are in complete control of your risk at all times.
The majority of market participants reduce this business to placing bets in a casino. Do you think of trading as gambling? If so, it’s time for a mental shift.
“Risk comes from not knowing what you’re doing.” – Warren Buffett
What is the most important part of the next trade you take?
If your response is “making money”, it’s time to change your approach. A master trader aims to execute high-quality trades, and in doing so, profits become inevitable. Reviewing your trades regardless of the result becomes a habit.
“The goal of a successful trader is to make the best trades. Money is secondary.” – Alexander Elder
Perhaps the greatest asset in a master trader’s toolbox is discipline. Have you developed yours?
Discipline is what makes you practice for extra hours, pushes you toward continuous improvement, and keeps you from taking a bad trade when the right opportunity has not presented itself.
“I just wait until there is money lying in the corner, and all I have to do is go over there and pick it up. I do nothing in the meantime.” – Jim Rogers
