In this article, I present 6 steps that helped one of our traders go from consistently losing trader to consistently winning trader in around 8 months. Furthermore, he did not just become profitable but also passed the criteria to become a funded trader.
This is the message the trader sent us:
Disclaimer: We have no affiliation with FTMO and we do not recommend them specifically. The trader chose the funding company independently. We neither endorse nor discourage traders from joining other third party companies.
And now, let’s look into the specific things that helped the trader tun his trading around completely:
1. Process and routine first
The trader said:
If you have been watching any of my videos, you have heard me say: consistent results come from consistent actions and behavior. Thus, whenever new traders join us, we make sure that they follow an organized routine and have well-structured trading plans based on our strategies and what we teach.
Of course, just doing things consistently won’t suddenly turn you into a profitable trader, but it will help you in many other ways. First, it will help you reduce the stress in your trading. Once you stop jumping around all the time and when you have a trading plan, your trading becomes less reactionary and the quality of your trading will improve. Furthermore, you will miss fewer trades because you know exactly what you are looking for – which helps a lot with trading psychology since missing trades can be very frustrating.
2. Journal and avoiding big losses
The most important trading tool is a trading journal. Just ask yourself right now: do you remember your last ten trades?
Unless you are a Rainman-like character, you probably won’t even remember your last five trades – which is normal. However, it further highlights the importance of having a way to record your trades.
In order to get better as a trader, you have to:
- Improve the things that don’t work out
- Avoid situations that only lose you money
- Make more of the things that do work in your favor
And the only way to truly find out how to go about those three points is with the help of a trading journal.
With Tradeciety, we have developed the Edgewonk.com trading journal which has quickly become a leader in the journaling niche.
3. Changes step by step
The trader said:
Once you stop system-hopping and you have decided on a trading strategy, the fun work begins. You have to make it fit your own way of thinking, to your emotional requirements, and how you interpret charts.
A trading strategy has various setscrews that can be adjusted and tweaked:
- Stop-loss distance: Controls the leeway you give your trades. The closer the stop to the entry, the lower the winrate and the higher the reward:risk ratio.
- Target distance: The further away the target is from your entry point, the less likely the price will reach it.
- Management: How aggressive do you want to be with your trade management? How quickly do you want to lock in profits?
- Timeframe choice: Finding your perfect timeframe has to do with how much time you have available, how your schedule looks like and how many trades in a day/week you want to realize.
And there are other factors that can be optimized. However, the key is to make only one adjustment at a time so that you can observe the effectiveness and whether it’s really improving your performance.
During our mentoring program, we help our students find the right approach that works for them.
4. Trade less and trade better
The trader said then:
The trader then worked on his trade selection process. He found out, with the help of his trading journal, that mediocre setups don’t perform as well. Mediocre setups are trades where not all confluence factors are present and where the trade is missing some criteria. Many traders will trade less than perfect setups all the time because they can’t properly sit on their hands.
However, once you see in your trading journal that only taking the absolute best trades, even if it means trading much less, may boost your trading performance, it becomes much easier to follow your rules.
5. Keep losses small
The trader further said:
The trader found out that applying an active trade management approach where he cuts the trades when they move against him will not only reduce the size of losses but also won’t hurt the upside.
Again, findings like this can only be made by actively reviewing your trades. Most traders, when changing their trading rules, have no way of backing up their decisions. This, of course, leads to inconsistent results.
6. Curiosity and ongoing adjustments
One thing that really stands out about this trader is his curiosity. During our weekly live webinars, he continuously mentioned things that he was testing and exploring.
Curiosity, according to Dr. Breet Steenbarger, is the number one predictor for trading success. From our experience as trading mentors, we can fully agree. Our best traders are the ones who keep on working on themselves and always try out new things.
7. Being part of a trading community
Finally, the trader said:
Being part of a trading community can have a big impact on your mental game and also potentially accelerate your growth as a trader.
We all know that trading can be lonely sometimes. And during tough periods, it helps if you have access to a group of like-minded people that you can fall back on, vent, and look for encouragement.
Following our mentees is a rewarding experience and seeing that people actually are able to change and improve their lives is a great experience. On Tradeciety, we do not want to trader-produce clones of ourselves. But we want to make sure that our traders are self-sufficient traders that can navigate the markets on their own.
The continued success of our students proves us right. Although not everyone will become successful, the traders who are committed long-term and put in the work have a very good chance of seeing significant improvements.
If you are interested in our mentoring program, you can find all information here: Forex premium mentoring
If you are on a budget or prefer to learn on your own, you can find our trading strategy here: Daily Bias Trading System
Disclaimer: The experience reports and comments shown constitute the personal experiences of our users. These are individual results that do not permit conclusions to be drawn about future developments. In particular, we make no claim that these are typical results that can be achieved by our users on a regular basis. Tradeciety can neither predict nor guarantee the occurrence of certain developments or the achievement of profits nor will it do so. Results may not be typical and may vary from person to person. There are inherent risks involved with investing and trading, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk.