The Secrets To Profitable Trading
ฝัง
- เผยแพร่เมื่อ 5 ส.ค. 2024
- What It Takes To Be A Profitable Trader?
Intro: 0:00
You Need A Trading Plan: 0:08
My Small Trading Account: 1:49
The Most Important Character Trait Of A Trader: 6:52
There's a lot of ways to make money trading, but from what I've seen and experienced there are a few common denominators that unite profitable traders:
YES, You Need A Trading Plan!
1) What To Trade
2) When To Enter
3) When To Exit
Since May 19th when I started trading this new account of $20,000 here are the results to this point:
- 59 PowerX Optimizer Suggestions
- 27 Ruled Out (Crazy Stocks, Bid/Ask high, Risk High)
- 32 Valid Signals
- 17 Have Triggered
- 15 Trades Taken
- 3 Realized Losses = -$547
- Open P/L = $1292
I will show you what it takes to be a successful trader by showing you how I'm trading this account. So right now, I still have 12 open trades and as we take a look into the specifics, you'll see I have one trade that's erased all the losses and then some. But more importantly, no BIG losses.
Taking a look at my account with the 12 trades I am currently in. If I were to close all these trades right now I would keep $1,282.
I have 3 losing trades, but according to my trading plan, I am only risking 2% of my account which is $400. These 3 trades got stopped out at $257, $150, & $140 for a total of $547. As you can see not on a single trade, did I lose the maximum amount.
Currently, there is one open trade that has an open P/L of $1,250, and if you look at my open P/L row, you will not see any large losses.
You have to cut your losses quickly. Big losses are what kill traders.
Now with a great trading plan and even the best tools there one trait that I believe really creates successful traders: CONFIDENCE
You can have everything stacked in your favor, but if you lack confidence in your trading plan or tools you'll always second guess yourself.
Believe me, I was guilty of this too when I first started out. I had NO confidence! I would bounce from one trading system to another because I lacked confidence in them, so I always ended up straying from my plan which inevitably leads to inconsistency and big losses.
Big losses are what great traders avoid! Staying in positions far too long is probably one of the things new traders tend to do. They fall in love with their position and refuse to just get out when the rules say to. So for this reason, you need to have both confidence in yourself AND the trading system.
So for me, confidence is truly the number one trait you need to be a successful and profitable trader. Because with confidence the rest seems to just fall into place, and you will start trading profitably.
This is how you become a profitable stock trader and stock trader.
I hope this helps!
My Step By Step Trading Plan and How You Can Apply It Also: • My Step By Step Tradin...
You can get a copy of my plan here: www.rockwelltrading.com/plan
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Are you using The PowerX Strategy or The Wheel as your primary trading strategy? Let me know in the comments below how you are doing.
Here is a link to my Step By Step Trading Plan and How You Can Apply It Also: th-cam.com/video/jXYMrnh5GXc/w-d-xo.html
You can get a copy of my plan here: www.rockwelltrading.com/plan
Markus is probably the most sensible, sincere, down to earth common sense character I've ever watched on youtube platform. Good...good...good
Aw... thanks for the feedback. Much appreciated. You make me smile. 😀😀😀
is nice meeting you sir
Thank you for watching! :)
Hey Marcus, fantastic video as usual with a touch of humour too which is great. Especially important is to cut those losses and get out based on the exit rules of the plan, and not just sit there until the stop loss is hit. Traders should regard the stop loss as the maximum loss, and not the regular loss they should take. You often hear the phrase, ‘Cut your losses’, but it’s never explained. Here it is explained clear as day so I hope budding traders, including myself, take note and pay attention to this.
Thanks for the great video Markus. I'm so happy I have found these great strategies and have the confidence and discipline to follow them. I spent almost my whole adult life believing (wrongly) that to be a successful trader you had to be smarter than everyone else and have some superhuman ability to pick winning trades. Now that I have learned how important it is to keep losses small (and not take it personally) I am enjoying more trading success than I ever believed was possible. I just placed two PXO trades this morning and look forward to a great 2021.
Helpful as usual
Thanks Leigh 😀
Great tips!
Hi Fábio, thanks for watching. And thanks for your feedback. Much appreciated. "See you" in the next video 👍
Picky and patient
YES! 👍
You mentioned you cut some trades early. When do you decide to get out of a trade early?
HI Gregg, I like to exit "The Wheel" trades at 90% of the max profits.
My biggest loss on a trade was $300 But I am a conservative trader.
Good job! Seems you have "risk management" under control. That puts you in the top 10% of traders! 😀👍
MARKUS IS GREAT TEACHER, HE GO STEP BY STEP WITH PATIENTS, BECAUSE MOST OF PEOPLE WATCHING THIS ARE NOT PROFESSIONAL TRADERS, KEEP THE WONDERFUL WORK. LOL 20k SMALL ACCOUNT! IT'S BIG FOR MOST BUDGET PEOPLE.
Hi Free Spirit, thanks for watching. And thanks for your feedback. Much appreciated. "See you" in the next video 👍
Hi Markus, that's a very helpful insight, many thanks! Quick question please - you mentioned that 17 trades for triggered yet you only took 15 trades. What happened to the other 2? If 17 got triggered wouldn't 17 have then been opened or am I missing something please? Thank you
He ignores stocks that have gaps in the chart.
hello Hello i am of reunion island and i am a beginners , I bought your book power strategie with amazon france good sunday
Hi Pete, thanks for watching. And thanks for your feedback. Much appreciated. "See you" in the next video 👍
trade the data (indicators) not emotions
Well said! 😀👍
how does one get out of a trade (options)that is going bad to cutlosses?
to close an option position, you need to do the opposite for the contract to "null" it. Example if you buy to open, you sell to close, vice versa.
Depends on what you have.
If you bought an option and it goes OTM, it usually has lost all of its value rather quickly, because delta and theta are against you in the wrong direction. You can either cut your losses and sell the option as-is, giving you pennies on the dollar, or you can do one of two things:
1. keep the option and hope it returns ITM. Say you bought an option at 2.00 and it's now at 0.12 and there's 4 days left, $12 is practically nothing....I'd just put in my mind that it's now a "gamble" position and I count it as a full $200 loss. If it jumps back up to at least 0.50, I will look at possible recovery phase (step 2)
2. if you feel your notions on the stock has changed direction or you are recovering, you can sell a closer ATM position for higher premium. This may or may not recover all of your losses, but it helps shed some of that premium back into your pocket. I tend to pick a spread that may return near the collateral, at the very least (if I can't, I'll just "gamble" the money). For example, if I bought at 2.00 and it drops to 0.34, the next strike closer is at 1.20 and I decided the direction has changed, I may sell it and get to keep $20 (the 100 is used as collateral between the strike prices). If the spread stays OTM, then I profit a total of 120 instead of 34 that was left....if it goes ITM, then I at least keep the 20, so only a 14 loss in comparison to the 34 I would have gotten "cutting my losses." (edit: I'm tired and the price difference would never be that big for a $1 strike width, I forgot to mention it as a calendar spread)
If you sold an option and it goes ITM, you can do many different things with it. You can roll it up-and-out, you can "wheel" the stock (look up "wheel strategy"), make it a butterfly (option terminology), buy an OTM to cap your loss, take your loss, or create a synthetic poor-man opposing position (i.e. let's say you sold a Put and it went ITM, you can buy a LEAP ITM Call and sell the Call at the same Put strike - if it keeps going up, the LEAP will cover, if it goes down, hopefully you get all of your money back in value to close the entire trade)
If you have spreads, this because much trickier and it's possible that it will require a lot of math knowledge if you want to perfect it. Most of the time you just take the loss and move on, but there are ways you can roll spreads out and wider, if you still feel the direction is coming, but it's doubling your losses if you're wrong (martingale). Another thing you can do is extend the outside leg if you plan on wheeling the stock, that way you collect more premium on something you will end up holding anyway. If you are able to box the trade, you can do that as well and hope for the best (if you can't box, you can use a second account or a spouse account to cover the other side), it isn't ideal, but it can give you just a little bit more cash to cover your loss that you will eventually be taking at expiration.
This isn't the whole list, but my comment is already huge.
@@shepherdsmith7065 fake account 🚨 SCAM ALERT 🚨
Risk taker. High risk tolerance.
I kinda guess that from your TH-cam name 😉
👍
👍
Be very slow to act, is the best character trait.
perspicacity
Discipline!
👍👍👍
I have no PATIENCE or DISCIPLINE
I hear you... but without it, trading will be like swimming upstream. Possible to make money, but difficult. 😳
Is there any ways of investing 300usd and get a profit of 2100 USD in 5 days.