What is the single biggest and most important thing a trader can do to improve their trading?
Uriel got it right, you have got to use the right trading lot size that gives you comfort. If you cannot sleep because you have open positions then you probably are risking too much on your trades. I do think however, that your risk per trade should be restricted to 2% per trade and for a big account you can even go lower to 1% or less.
Also, profit trailing is key, but the problem is a lot of people want to open positions and close it the same day to avoid swap fees, and therefore are not in a position to trail their trades.
I also remember when I started trading I was always overtrading. Sometimes it is just better to sit and watch the market. That way, you would understand the ebb and flow of the market better and you would enter and exit in the right places
It should be apparent but dont be surprized if its not....
The single biggest thing any trader can do to improve their trading is to use a lot size they are comfortable with. Meaning using a size that they are not stressed about, another way of saying this is, use a lot size where your stop loss in pips is about 5% maximum of your account balance.
This would mean you will be able to leave the trade without watching it therefore allowing the trade to mature and make a profit.
Many times the trade as we saw it was correct but just that it took the market awhile to agree with us "pun intended". Or market just took a different route to get there.
Either way if the lot size is right we dont over trade but move on to the next trading opportunity.
By being under less stress in planning and taking the trade we become more at ease at finding and following our system.
Just use lowest Leverage like offering UK regulated brokers 1:20, 1:30
That's all
"How do you know you are using the wrong lot size?"
If your butt puckers with every tick you might want to back off. My butt is my favorite indicator.
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It should be apparent but dont be surprized if its not....
The single biggest thing any trader can do to improve their trading is to use a lot size they are comfortable with. Meaning using a size that they are not stressed about, another way of saying this is, use a lot size where your stop loss in pips is about 5% maximum of your account balance.
This would mean you will be able to leave the trade without watching it therefore allowing the trade to mature and make a profit.
Many times the trade as we saw it was correct but just that it took the market awhile to agree with us "pun intended". Or market just took a different route to get there.
Either way if the lot size is right we dont over trade but move on to the next trading opportunity.
By being under less stress in planning and taking the trade we become more at ease at finding and following our system.