Guidelines breakup in steps:-
Over the years I've learnt a lot of new things that I wish I knew when I first started. Hence I decided to share this with all the new traders out there who wants to turn their trading into a profitable career ahead.
1 - Keep it simple!
Trading is only as complicated as you make it. When starting out you should focus on the very basics and don't over complicate anything.
2 - TA(Trade Analysis) is only the beginning
When you have a good understanding of TA, it's time for a life-long struggle with trading psychology. This is much more important than TA and this will require your absolute focus and discipline. Controlling your emotions is key to trading success.
3 - Risk management
This is the single most important part about trading. As long as you have good risk management you can be profitable even with a bad trading system. But you will never be profitable with bad risk management even with a great trading system.
4 - Stick to what makes sense
Its important you stick to what makes sense to your trading style & personality. I've always stuck to the ideas and techniques that resonated with me as a person, with good success!
5 - Get inspired, never follow
Never blindly follow others, only get inspired and motivated by others ideas and always apply your own TA and research before taking a trade.
6 - Journal, Order Book, Charges
Its very important that you journal and review all your trades to know what you should improve upon what mistakes you need to avoid. This is crucial in attaining an edge over your trades.
7 - Type of trader
Get to know yourself as a trader and be honest with yourself here. You are never going to be a scalper if you only have an hour a day to trade. If this is you, swing trading is a much better option. Adapt your trading to your current life situation.
8 - Confluence
Confluence is the name of the game. Your job as a trader is to be a confluence hunter. Take everything you have learnt, put it on the chart and look for areas where everything aligns perfectly, that's your high probability trade.
9 - All fibs are created equal but the .618 is magic
Confluence between HTF S/R levels and the HTF .618 is one type of confluence i love to find and it's a big part of my system. Look for confluence between the HTF & LTF .618
10 - Being right or wrong don't matter
In trading, it doesn't matter if you are right or wrong. All that matters is this: How much money are you making when you are right and how much money are you losing when you are wrong?
Get rid of the need to be right all the time.
11 - Learn by doing
Don't spend too much time learning TA without actually trading. Trading is all about trial and error and its easy to get stuck in the learning stage.
Never stop learning and improving but do so by actually testing your ideas. Another reason to journal!
12 - Horizontal Support & Resistance
Its absolutely crucial you learn and understand this concept. 90% of all expensive trading systems out there is based some way on Horizontal S/R levels.
13 - Adapt
You need to adapt your trading style to your personality and life situation. If you are an impulsive person with a stressful life then scalping the lower time frames is most likely a very bad idea. Try everything, stick to what works and makes sense.
14 - HTF Discipline.
Let the Higher Time Frames help you with a potential lack of discipline. If you only wait for Daily candle closes above or below certain areas you will force yourself to be more patient.
15 - Plan while waiting
Trading should be 75% waiting for the setup to come to you. And while you wait for the right setup to present itself you should be planning for the next trades and journal your past trades.
Planning and reviewing your trades is very, very important! Always be yourself and have faith in yourself.
Do not go out and look for a successful personality and try to duplicate it.
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