10 Lessons from 10 years of my Trading Career.

Summary

The speaker shares key lessons learned from a decade in trading, emphasizing that trading is a business requiring a well-thought-out plan and patience. They discuss the importance of understanding one's trading style, managing emotions, and avoiding the pitfalls of news-driven impulsive decisions. The transcript highlights the need for discipline, learning from losses, and maintaining a balance between trading and personal life. It also stresses the value of keeping a trading journal to track progress and avoid repeating past mistakes, ultimately aiming for continuous improvement as a trader and individual.

Takeaways

• 😀 Treat trading as a business, not a quick money scheme. Approach it with proper planning and expectations.
• 📈 Swing trading and achieving 4-5% monthly returns can be very profitable if done with a plan.
• 📉 Losses and learning from mistakes are part of the trading journey. Market tuition fees teach valuable lessons.
• 🧠 Avoid seeking shortcuts. It takes at least 2-3 years to understand both the market and oneself.
• 🔄 Choose a trading style that suits your personality. Hit-and-trial is necessary to find what works best for you.
• 📰 Avoid news and noise. Stick to your plan and do not let news influence your trading decisions.
• 📑 Keep a trading journal to record entry and exit reasons, helping to avoid emotional trading decisions.
• 🚫 Don't try to go all-in. Large position sizing to recover losses quickly often leads to blowing up your account.
• 🧩 Plan exits as well as entries. Know your exact loss limit before entering a trade to reduce anxiety.
• ⚖️ Maintain a balanced lifestyle. Avoid overtrading and prioritize health and relationships.

Q & A

What is the primary message the speaker is trying to convey about trading in the market?

The speaker emphasizes that trading should be approached as a business, not as a quick money scheme, and it requires time, study, and planning to be successful.

What does the speaker suggest is the first step for anyone entering the market?

The speaker suggests that before entering the market, one should study it, understand their own strengths and weaknesses, and have a clear plan of action.

How does the speaker describe the importance of having a plan when trading?

The speaker stresses that having a plan is crucial for managing risks and ensuring that trading is a calculated process rather than acting on impulse or fear.

What is the speaker's view on the role of news in trading decisions?

The speaker advises to avoid being influenced by news, as it can lead to hasty and often incorrect trading decisions, and recommends sticking to a well-thought-out plan.

What does the speaker mean when they say 'trading is a business'?

The speaker means that trading should be treated with the same seriousness and professionalism as any other business, including careful planning, studying the market, and managing capital wisely.

What is the speaker's advice regarding the size of positions traders should take?

The speaker warns against taking overly large positions in an attempt to recover from losses quickly, as this can lead to blowing up the entire account and should be avoided.

How does the speaker define a successful trader's approach to losses?

A successful trader, according to the speaker, accepts losses as part of the trading process, learns from them, and does not let emotions dictate trading decisions.

What is the significance of maintaining a trading journal according to the speaker?

Maintaining a trading journal is important for tracking decisions, entry and exit points, and for reflecting on trading behavior to avoid repeating past mistakes.

What does the speaker suggest is a common mistake made by new traders?

A common mistake made by new traders, as suggested by the speaker, is not having a clear plan for when to exit a trade, leading to decisions based on emotions rather than strategy.

How does the speaker view the relationship between trading and lifestyle?

The speaker views trading as something that can greatly influence one's lifestyle, both positively and negatively, and emphasizes the importance of balance and not letting trading consume one's life.

What is the speaker's final advice for traders to improve their trading skills?

The speaker's final advice is to learn from mistakes, embrace new challenges, and continuously seek to improve as a trader and as a person.