Hi Steemians. Today I want to leave something about my trading experience that maybe can help those who are starting in this activity, which is very exciting and even fun, because it is an activity full of challenges, risk and adrenaline.
What I want to leave you are some personal conclusions of what I have learned, although some things have already been said out there.
The first thing a Trader should know is that the market is independent of any situation. It is always advisable to do the fundamental analysis: to know the news, the current political, social and economic movements, as well as to prepare the corresponding technical analysis and thus elaborate a better plan and know when we can enter the market or leave it. , but all these studies and analysis can fail, and in fact fail more recurrently than we think; So, the main premise is: In the market, anything can happen, no matter how good you are in this, no matter how accurate the analysis is, it does not matter at all, the market simply goes in one direction and a second later it goes in the opposite direction. Keeping this in mind you must be willing to take an unexpected loss, and that is called: Risk Management.
The training is KEY. Michael Jordan in 1995 after losing the semifinal of the Eastern Conference of NBA by an error of his own committed to the city in which the next season would return and win the championship. What happened was amazing, in the 1995-96 season the Chicago Bulls led by MJ broke the record of victories in the regular season and established a new one in 71 Victories, broke the record of consecutive victories and established a new one in 50 Victories, MJ he was the Most Valuable Player of the season, the highest scorer of his team and of the season, the Most Valuable Player of the Play Off and the Most Valuable Player of the Final. Now, the question is: How did they achieve all that in one season? Everything was the product of MJ's commitment, to achieve this he decided not to take vacations and from June 1995 until November 1995 (month when the season began) MJ trained every day focused on his goal, practiced and improved his throwing technique, the dribbling , the tactics, was physically trained to the point of achieving only 2% body fat; When the season started MJ was the best prepared athlete. I'm going with this story of Michael Jordan, to that things are achieved with much practice and training, and Trading is no exception, every day we must practice, train, analyze, comment with experts, read the experts, listen other analyzes, review statistics, study, study and study to be able to have solid trading fundamentals, in this way we minimize the risk and improve our chances of success.
Having a Trading Plan is vital for success in this profession. A Trading plan consists of a series of rules to follow in certain situations, either to enter or leave the market. An example would be something like: I will risk only 10% of my capital in each operation, or neither operation must exceed 10% of the available capital. This is just one of several rules that must include a Trading Plan, which will become more effective as we improve and we update it. This allows us to improve our chances of success.
Everything said above is simply trash if we do not have "DISCIPLINE" I have baptized the Discipline as the mother of success. It is impossible for you to achieve goals if you do not have discipline. Returning to the example of Michael Jordan we can note his level of discipline to decide not to take vacations and train each and every one of the days he had before starting the new season; so we must be in the trading. Having discipline for us Traders means fully complying with our Trading Plan, training or practicing daily, following schedules, leaving the market when necessary, etc.
Finally, keep in mind that each trade is independent of the others and no matter what happens, any trade, good or bad, can influence the decision of the next; in a few words: Forget about the previous trade. You should always be aware that the market is changing and that each trade needs an independent analysis of the others. The fact that an trade is lost does not imply that the next trade will be lost, but a winning trade does not imply that the others will be, for this reason: Forget about the previous trade.
