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Learn to Trade – Your System

To learn to trade successfully, you need create your own systematic approach and trading plan from which you are able to make your own decisions. Successful trading requires a unique understanding of markets, core risk-taking ability, temperament, perception and even a compatible lifestyle.

Trading is certainly not a product in a box that you can buy with a manual or a get with a single training course. Books and courses provide you with the pieces of the puzzle, but your skills and battle-earned experience are what allow the pieces to fit together in a workable, repeatable system. So, rather than attempt to become a successful trader overnight, look for small wins and incremental improvement day by day, trade by trade.

Experienced traders have the trading “feel” that comes from having experienced hundreds of trading situations. But how do new traders become experienced without going broke first, when they don’t have the necessary confidence or “feel?” Without the confirming experience, how does one quickly overcome losses without beginning to doubt their system, buy someone else’s system or have negative emotions creep in?

Which comes first the chicken or the egg?

We at suggest to focus first on a “seriously tracked” paper trading account. This is how you start to improve your performance in small increments. Then, switch to a real-money account and take a very small amount of risk per position. Nothing like the 2% of capital that is suggested by the popular literature – instead just 0.2-0.5%. Make money not for supporting yourself, but for the purpose of establishing your baseline statistics.

Build your powers of structured, yet flexible, thinking as well as the skill of weighing contradictory chart readings and situations. Understand the impact of price action on the crowd mentality and at the same time develop your own emotional awareness. Learn to keep all your actions under control. Many times we are told that traders are champions of controlling emotions. With all the pressure of trading, no human can completely control fear, impulse and self-conceit. However, you can control the computer mouse with great consciousness and presence. Learn to measure and take risk, instead of trying to avoid it.

  • Determine the trend, your own idea about the directional edge. Next, form this opinion as an if-then action plan.
  • Then define the assessment’s validity, name the confirming conditions and the point of ruin.
  • Finally, time your entry and trail it with a stop loss order.

Easier said than done, right?

Join us at Trader Skillset as we chip away at chart examples, missed or successfully traded situations, performance, cause and effects, skills and tools of the trade. The “probable” trading we use, just may help you develop your own trading system. Use our ideas and tricks as amunition and then go beyond that. Be the inventor of your own systematic approach and trading plan. That will actually enable you to make your own decisions in a blink of an eye; with a fluent focus any market, any time. Like we say in the disclaimer, in order to learn to trade, you must own both your losses and success.

The time zone we reference on our charts is Pacific Standard Time. Therefore, the U.S. cash market opens at 6:30 AM PST and closes at 1:00 PM PST.

About Laszlo Nagyferenczi

Laszlo Nagyferenczi is a day trader, analyst and instructor as well as the creator of the proprietary Context-Momentum-Signal concept. He has authored over 200 blog articles about his unique approach to trading and the Elliott Wave Theory. His clients appreciate his ability to go from the theoretical to the practical i.e. all the way to the actual trade set ups. Originally hailing from Hungary, Laszlo is fluent in English and Hungarian with a long list of education credentials including BA in Economics, Certified Elliott Wave Analyst (CEWA), Certified Adult Educator for T-Groups, Professional Co-Active Coach (PCC) at CTI. The real education, though, has been the trial by fire in the markets, with real capital at risk.

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