Profitable Traders Share Common, Learned, Habits
The people who are profitable generally share common methods, common standards and common rules that they all abide by, even if they are wrong 70% of the time and right 30% of the time – they are profitable in today’s difficult markets.
You may have been trading cryptos, maybe making 60% correct calls and still be struggling to make profits.
If this is the case, I invite you to imagine how Phantom of the Pits two rules can actually
tip the odds into your favor and help ensure smaller losses and bigger profits!
More Than Buy Low Sell High
When you first read Rule #1 and Rule #2, it may seem over simplistic. But as we uncover subtle elements to these rules and consider the consequences over a long time frame, you will come to understand the profound impact of this approach to trading and any other risky thing you are doing.
No matter what kind of investing you’re doing, whatever risk you are taking – if it’s short-term or long-term – you want to incorporate Rule #1 and Rule #2 to help you protect yourself against losses, and, make your winners even bigger.
Once you see how these subtle effects all work together to help ensure your profitability – Rule #1 and Rule #2 will naturally become a part of all your trading. By practicing these two rules with your micro-investing, you will develop habits and wisdom that will help you gain similar mastery over your fiat cash stack as well.
Often these rules can also apply to other areas of your life where you can use them on setting goals, correcting missteps quickly, and boosting the successes of any of your endeavors.
Growing your micro-investments is a lot of fun!
Dealing with money should be fun! And this is a great place to learn and practice success habits with money!
Correcting Common Trading Mistakes
One student wrote in: “I was trying leverage trading this week on gold and silver and I noticed I was really anxious of being at loss and I notice that I would get out very quickly if I’m in profit.”
This is a wonderful example of natural human emotion, and it’s the reason you want to start off small, with no leverage at the beginning.
Just play. Just get used to it. At the beginning you have to learn not to be anxious about a loss, you have to expect it, plan for it. It’s part of trading and I recommend that you read Chapters 5 and 6 again in the book by Phantom.
I talk about these rules all the time but I never explain them fully – because Art Simpson and Phantom of the Pits do a masterful job of it, I refer you to read the chapters 5 and 6 as part of your homework.
It will help you. But you must change your thinking about the difficulties of a loss. Instead, start with the perspective that will help protect you against the nasty things the market can do…
They who lose best, are the biggest winner in the end.
I’m so very grateful for that comment because I also have the same emotions many times in my trades! …especially if I’m over-trading with a position that is too large, or if I’ve put on a trade with too much leverage and my stoploss is too close to the market.
When trading a market, you have to give it room to move. That means you have to trade a small enough position that you can comfortably give it that room to move within the technical levels.
It is only difficult if you have not imagined your way through the significance of Rule #2.
But you must trade the correct size according to the size of your account, and take into consideration Rule #2 before starting your initial trade. It takes repetition of learning and practicing these core skills – study past trades and imagine how those trades felt – until you experience your own success!
Like learning anything, it may start out difficult, but soon it gets easier, and then becomes second nature.
What’s Next?
Now that you have reviewed the basics of the risks and difficulties that are a standard part of trading,
it’s time to look for the best place and the best time to ‘cross the road’.
And review the Step 3 checklist of you must follow if you want to survive…
- protect yourself from speeding cars hitting you blindside, to
- protect yourself from cars that run a red light, etc..