How To Win The Game Of Trading (6 Lessons Learned After 10 Years Of Trial And Error)

What’s up Traders, in this article, we’re going to be talking about How To Win The Game Of Trading (6 Lessons Learned After 10 Years Of Trial And Error). 

Have you ever wondered why 90% of traders lose money, while trading did you know that almost 80% of traders, quit in the first two years of unsuccessful trading, the harsh reality is that trading is not easy. 

And you as a trader must know exactly, what you’re doing, if you want to stick around in the game for the long term hay traders. 

I traded the forex market for the past ten years and, if you stick with me a couple of minutes, I will share with you my most important lessons I’ve learned. 

 

Overbought/Oversold levels are not reliable in the long term

So that you don’t make the same mistakes, I did the first lesson I’ve learned is that overbought, and oversold levels are not reliable in the long term.

When I started trading I took the advice, I read on different books about the overbought, and oversold levels and you know what the majority of books teach us that. 

If a market reaches overbought levels meaning, that there are too many buyers on the market, then the prices should go lower. 

And different market which is oversold levels meaning, that there are too many sellers on the market the prices, should increase after a lot of money lost.

I realized that the trading reality is that simply, because the market which is overbought or oversold levels, does not mean that the market prices, will immediately reverse in the opposite direction during periods of strong.

Upward trends or downward trends the markets, can remain in the overbought or oversold areas for days weeks or even months. 

Let’s look at this chart many traders, believe that when the RSI or the stochastic indicator, hits or exceeds values of seventy or thirty they. 

Should enter in the opposite direction, that’s a wrong approach to, what concerns these indicators sometimes the prices can stay a long time in the overbought, and oversold areas. 

 

For every valid OB/OS signal there are other 10 flase signals

And during this time they can continue, to go higher or lower for every valid overbought or oversold, signal offered by these indicators there are other ten false signals, in the long run chasing overbought. 

And oversold levels is not profitable, I have stopped watching these levels a long time ago, and never looked back. 

 

200 EMA was the only Moving Average I needed on my charts

Another lesson, is that the 200 EMA was the only moving average, I needed on my charts let me ask you if this sounds familiar you plot.

Five or six indicators on the chart and after a bad week, you remove those indicators and add others, and the next week you repeat. 

 

Don’t overload your charts

This process once again this was my style when, I started trading my charts consisted of many indicators once. 

I removed from my charts all the other indicators, and moving averages and focused only on the 200 EMA, my trading improved a lot the 200 EMA. 

Turned out to be very effective during training periods, and an important tool for identifying trends, for establishing potential areas of dynamic support or resistance. 

And even accurate entry points on the market why is the 200 EMA, so reliable in the technical analysis, well it is believed that many institution like banks, hedge funds, Forex dealers are following this indicator. 

If we take a look at this EMA on any currency pair, commodity or even cryptocurrencies, we can immediately see its value. 

 

Demo Trading won’t accurately predict How you’ll will perform on a real account

 

• The psychological pressure of risking real money
• Demo your Strategy until you have consistent positive returns
• Open a Micro account and trade with cents

Another lesson was that demo trading, won’t accurately predict how you will perform, when trading with real money the reason is simple. 

And obvious if there is no money on the line you eliminate, one of the most important variables that affect your trading decisions.

 

The psychological pressure of risking real money

The psychological pressure of risking real money even, if you perform extremely well, when trading a demo account your results. 

 

Demo your Strategy until you have consistent positive returns

When you start to trade on a live account might differ considerably, so you should demo your strategy until, you feel comfortable taking your signals, what I personally would not get focused on demo accounts. 

 

Open a Micro account and trade with cents

For too long once you tested your strategy, and managed to have a positive returns, on demo open a micro account. 

And trade there for a couple of months start small, with few money and trade with sense instead of dollars even, if you trade with sense you will feel the market, much better than trading on a demo account.

 

Losing money is good

 

• You will learn more from losses than from winning trades
• Prevents a much larger future loss

Another critical lesson was that losing money, is in fact a good thing as, I said before trading is not easy and you should treat, it as a learning experience. 

Losing money is very important for every traders development, it will teach you many things, that you are not aware of now don’t get me wrong losing is not fun, and you will probably find it very unpleasant. 

 

You will learn more from losses than from winning trades

While it’s not enjoyable to lose money while trading, in the end you will learn more from taking.

A loss than from a winning trade the important thing, when you lose money is to learn from this experience ,and not to do the same thing again. 

 

Prevents a much larger future loss

You get an education for that lost money, and come out a little smarter, in the future believe me once you learn an important lesson. When losing money this prevents a much larger future loss. 

 

Trade a Strategy that fits your personality

Another lesson was that you should trade a strategy, that matches your personality, when I started trading I found an online course.

That was teaching sculpting they claimed a high success rate and, I tried their approach for a couple of weeks after that, I was down 20% in my account. 

You see the key to successful trading is finding a strategy, that works and that fits your personality the reason, I was struggling with scalping was. 

Because I didn’t enjoy that fast paced trading style, I didn’t want to monitor the price section very closely, and I didn’t want to sit all day in front of the screen.

 

Find your risk aversion

Even if their trading strategy worked, it did not fit my personality, so I ended up losing a lot of money, my advice for you is to find your risk aversion. 

Your risk tolerance you should look for the timeframe, that matches your training style see, if you are day-trader, swing trader, position trader or a scalper ask yourself. 

If you are a technical trader or, if you prefer fundamental setups choose the indicators, or other tools that you feel most.

Comfortable trading with these simple elements, will help you in establishing a strategy, that will fit your personality. 

 

Focus on preserving your capital

 

• Staying in the Game
• How can I Trade while preserving my capital
• Ups & Downs

The final lesson was probably the most important one, when I stopped thinking about the huge profits, I could make and focused on preserving my capital. 

I noticed a vast improvement in my trading results, successful traders concentrate their efforts on, how much money they could lose before thinking about, how much money they could win, the key to making money over the long term from trading. 

 

Staying in the Game

Is simply staying in the game you need to preserve your capital, so that you can stay in a game long enough to see, your trading system reward you. 

When I started trading, I had a gamblers mentality and, I suspect a lot of you have this mentality too, I focused almost entirely on how much money. 

I could win with almost no regard for losses. when you start trading you should ask ask yourself. when I will become profitable.

 

How can I Trade while preserving my capital

You should ask yourself, how can I trade while preserving my capital, and what should, I do to limit my losses and be in the game one month one year from now. 

So in order to be successful, you first need to become a break-even trader the beauty of being a break-even trader, is that you protect your capital while gaining market experience. 

You don’t lose money and guess, what you will be ahead of 90% of traders those were the most important lessons, I’ve learned in the past ten years. 

 

Ups & Downs

During my trading journey, I’ve had my ups and downs, I am still losing trades and, I still have my doubts when taking a trade. 

But there’s the job of a trader and, whoever tells you that waiting is easy well, is lying to you. 

 

Final words

Okay, so that’s it I’ve come to the end of this presentation, I hope you’ve enjoyed it and if you really do please write a comment and click the share buttons smash it right, and click to subscribe bell to Allow notifications be updated.

Whenever, I publish content like, this and finally any questions or feedback let me know below and I’ll do my best to help, so with this guide, I hope you got value out of this presentation, I wish you good luck and good trading and I’ll talk to you soon you.

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