Hi guys,
It took me a while to find a way to explain it in the easiest way I can.
I want you to learn and earn in this community !
READ TILL THE END CUZ I WANT EVERYBODY TO SUCCEED.
Here are the most common trading errors.
1. Trade Idea Alert
First of all when I share a trade alert and you missed the entry, wait for pullback or consolidation or don’t
play at all and wait for the next one!!
Always think about your risk and reward! Don’t get FOMO (fear of missing out) !!
The Market is going nowhere! It will always be here! There is always another play! The market will
reward you if you stay disciplined! If not the market will take it away!
Trading is a marathon not a sprint!
Trading always was, is, and will be a game against yourself. There is nobody to beat! You just playing
mind games against yourself!
Some of the trade idea alerts moves very fast so i don't have time to share guiding or levels with you.
By the time I typed out the levels you will miss the whole move.
When I share an idea with 👀 it means pay attention to it!
Look at the chart first! Wait for entry opportunity!
Don't chase unless you know what you are doing!!!
REMEMBER , shared levels aren’t GUARANTEE.
It just shows you potential.
Everything depends on the price action, market volatility.
Always scale profits on the way up and don’t let it go red
2. What is SCALE:
Scale = This could be referred to 2 different ways. You could either scale in to a trade, or scale out of a
trade. Scaling in refers to entering a position with small sizing, and adding to that little by little. Scaling
out refers to exiting a trade by getting rid of your position little by little to protect your profit!!
SCALE OUT as it starts to move, reduced position will keep you emotions in check that will help you let it
work. DON’T STARE at P/L just look at the chart. Move your stops on breakeven and let the trend guide
you to ride as long the trend holds!
Example:
Let's say hypothetically you have 5000 shares. And the trade price is 1.00 it goes to 1.15 you scale 2k
shares out and the next 2k shares you scale out at 1.25 so you sold already 4k shares and have a nice +-
22% gains! The last 1k shares you put a stoploss on entry or moving it up so the last 1k shares is a stress
free trade! And leave it to run and scale bit by bit more out.
SCALE IN means you add more shares on your starter position!
Scale In, Scale out, Scale In, Moving stops up this is how you play the scalping game!
Lot of people struggle with trade management Find what works for your personality!
Tip: use a broker that has hotkeys so you scale in or out fast.
3. SIZING what do I mean by that
Chasing home Runs every day you, you size big and end up red. Small Green or flat is much better than
red everyday. Position Size accordingly, focus on how much u can lose first vs how much you can make!
Don’t be stubborn and desperate and make rash decisions and sizing big!
Just because you can Size Up on any trade.Does not mean you have to!! If you have unlimited buying
power, does not mean you have to size BIG! That mistake will blow up your accounts!
It's okay to be wrong. But, if you are wrong, just make sure that it's not final. Always manage your risk.
4. You don’t have to trade all the alerts or everyday!
If you had a few good trades in a day, week or month you turn your monitors off and enjoy LIFE!
Full time day trading doesn't mean you have to sit the whole day, everyday at your tradingstation. After
you hit some target goals. You go out and enjoy life. This also called risk management. The market isn't
going anywhere. The market is here 100 years ago and will be here for the next 100 years.
There is always a next play. There is always another runner! Spend your time wisely!
You know the famous quote: MONEY NEVER SLEEPS! That’s a true story!
For those struggling with consistency, which I know many are. You’re not alone. Trading is the hardest
thing I’ve ever done in my life by far as it is for many. Like I always say, do not quit. That’s the only way
you’ll make it. Keep going keep learning. It’s not that “trading isn’t for you.” It’s that you haven’t found
your niche or your groove but you will. Yes, I’m talking to YOU! Until you find confidence and
consistency, KEEP your position sizes SMALL! Take the profits while they’re there and focus on the % not
the $ amount! There is no rush to be a millionaire, you will get there. Just keep plugging away and
learning. KILL the part of yourself that feels fomo (fear of missing out), that feeling you get when a stock
is running and you are upset that you’re not making money while everyone else seems to be so you buy,
like a fool, and end up losing your ass or getting stuck in a stock forever. That’s a gamblers mentality and
you WILL lose!
If trading was easy everyone would be millionaires. Try not to make the same mistakes over and over
again and eventually you will make progress in trading. Losses are inevitable but keep them small.
So you are able to come back and play the next day and so on.
Here is just a start! Read it and implement it!
To be continued!
Weatherman118
