Updated: Jul 17
Welcome to this rather long blog post on the 21 tips that can, and if applied WILL, make you a better trader!
We are actually working on a free Udemy course on these topics in which we will go into much more detail on each point, but if you're excited to learn from us and our lead trader, Denis Popivoda, then go can go ahead and watch our existing free course on Udemy by pressing here, and when you're done with that one you can then start learning our complete trading system on this course, its a steal price wise, at the time of wiring this post the course has 4 hours and 53 mins worth of content and by the time this weekend is over it will be well beyond 5 hours.
That's right, we are constantly updating the course with fresh videos of any tips we might have missed and recaps of the trades we take on weekly, and sometimes daily, basis. The Primed Predator course costs only 29.99$, yeap! And comes with LIFE TIME ACCESS!
Here's the deal, a lot of "traders/educators" out there are really quick to ask for, and take, thousands from people for silly trading material that they don't even apply... they are swindlers/sales people, pitching "the life" and earning money from trading... we are selling our complete strategy course for just 29.99 because our mission is to deliver value and real skills to the trading industry, if you want that, click here.
Anyway, enough with talk, lets get into action!
1.) Consistency isn't something you'll ever have, it is something you do! One excellent tip to build consistency, which will also help you build discipline, is to wake up and go to sleep at a similar time every day, this will help you build a consistent routine and also help you get more organized.
Remember, we are in the markets who we are out of them, so work on yourself as much as you work on your trading skills and not only will your trading get better, but your life too will become better as a direct result of those causes!
2.) Track and analyze every single trade you take! You can only improve what you know isn't going right, that is why it's crucial to track everything you do in the markets, then analyze and reflect on how to improve or remove what is not going well for you in trading.
3. Never stop learning. This one might seem basic, but you will be surprised to know that you have not yet, and never will, live through every market scenario. To give you an example, a trader who started trading in the 90's never traded through a global pandemic, and the markets always will react differently in different scenarios... think of EURUSD at parity right now, I never traded a market where the USD is stronger than the Euro, this will defiantly be a different market than the previous years and we need to constantly learn in order to be on our A-Game in the markets.
Use the attitude of: No matter how much you know, there is always more you can learn to reach the next level. - And this is very true in trading and investing.
4.) Surround yourself with other traders. One of the biggest mistakes people make is that they think they'll meet someone randomly who'll change their life, most people are drifting in life and in trading hoping that success will come to them... I was fortunate to work in the financial markets (for brokers) at a young age, I also had a good friend growing up who was living off trading , these two factors gave me the reason to learn/improve and have the motivation to keep going!
Join a community, make friends online with other traders, participate in chart room discussions... no one has a monopoly of the best ideas on how to trader, seek networking in your free time. - Make trading a way of life!
5.) Be proactive with the markets, never get stuck on an idea that the market is bullish or bearish... rather be just as ready to buy as you are to sell. This one goes out to the day traders out there for sure, but it is useable by even long-term investors.
Your mission in trading is to make money, not be right on your analysis.
6.) Don't be a jack of all types of trades, specialize in one way of trading and make it your business to be the best at it. You cannot be the best dentist in the world while also being the best architect, focus on one style, one system and one way of trading... and become a master of it!
7.) Think risk first. Let your risk determine your reward, but strive to get a 2+ reward over risk. To give you an example of my trading, my take profit is always at least 2.5+ of my risk, I generally trade indexes so my stop loss throughout the day on the DAX and NASDAQ is a mere 13 points, while my TP is based on the opening 2m range of the London session (for DAX) and the first 2mins of the New York open (for NASDAQ), if the range is 20 points, then my TP is 30 pips, but that rarely happens, my TPs can go all the way up to 70+ points, of-course they don't always hit, but just this week I have 15+ TPs just on WTI.. believe me do this, its worth it!
8.) While we are at risk, learn to not only love risk, but respect it, because trading is literally risk for reward, if you don't put up the risk there can be no reward, so if you're looking for that "sure thing" business your not going to find it in the markets... our whole life, day in day out, is based on risk. We run risks every time we get out of bed, so get comfy and start loving it!
9.) As I said in point 4, you cannot have a monopoly of the best ideas, nor do you have one for all the knowledge, especially when it comes to price action patterns, so spend time researching and learning them, for example even today I am learning new things, recently I switched to a line chart instead of a candle stick chart and the reason is I can see exactly how the market is closing, I see price action (highs/lows) better, but I also see patterns much easier and clearly. Because of this new found knowledge I have been able to sell market highs and buy market lows multiple times this month already, here's an example where I sold the top recently on the NASDAQ:
10.) Your trade should end only in one of four ways, small loss, breakeven, small profit or big profit, you should do everything in your power to not allow the fifth option to arise, which is a big loss. Fortunately in trading we are the decision makers we decide how much we buy/sell, when we buy/sell, whether we use a stop loss and where we exit our trades.
If you have big losses, its only your fault!
11.) Multitasking is a myth, at least in the trading world. If you really want to become a successful trader then you must do one thing at a time, if you're trading, then only trade. Here's what I expect from the traders in the PrimedTraders community: Delegate a predetermined amount of time where you will devote 100% of your focus and attention to trading, doing this allows you to focus on what matters most, and that is to follow your process and pay close attention to the charts.
12.) The only way you will build confidence to act is by taking action. Once you have a complete trading system, one that governs every aspect of your trading then you must focus on following it completely, at the start you might have more losses than winners and that is fine, because that comes from not having the specific market know-how and instinct, both of which will come to your through action and not by reading more books or searching for more indicators.
13.) Reverse Engineer your best trades. In our discord community we have a section called "Playbook trades", this section is vitally important not only for me, but for everyone in our trading team because it tells us what our best trades look like, and by going over them every day we know what they look like and this helps develop confidence to act on them quicker.
Here's a prime example, I took this trade yesterday before the market close. I saw the little higher low forming at the bottom of the 1m chart (right), as soon as I got the criteria from my system to buy, I took it without thinking about it, why? Because I've taken a trade similar to this dozens upon dozens of times and its edge is higher than its failure rate!
14.) Learn to attach yourself to actions, not outcomes. in trading your only job is to follow your process consistently and manage your mindset, many times those actions will result in losses, but that's totally normal, no one wins 100% of the time... trading at the end of the day is a game of probabilities, if you repeat your system (as long as it has an edge) positive outcomes will come.
15.) Get a daily routine in place, but make it into something that you love. I made my morning routine based on Robin Sharma's book, "The 5am Club", I broke my first hour of the day into 3 intervals of 20 mins each. 20 minutes are dedicated to exercise, 20 minutes to reading and 20 minutes to food, shower etc. This routine really works for me and helps me start the day with the right foot forward! Don't have the time? Make the time, sleep earlier or learn to sleep an hour less, at the end of the day it boils down to how bad do you want it!
16.) Prioritize your trading life. I invest most of my free time to researching, reading, analyzing and all of this allows me to improve as a trader. My goal is to be the best and make the best of my day, and if you want to become the best, you have to prioritize your trading life.
The best traders have a deep passion for the markets, if you are only trading to get rich, you won't make it.
17.) There is no shame in losses and mistakes, the real shame is in hiding them and as long as you are not 100% honest about your trading, you will never make it! The day I started making consistent profits is the day I stopped "lying" to myself and saying enough is enough... no more of overtrading/oversizing/early entries/late entries (whatever your problem might be) admit it, accept it and say "ENOUGH IS ENOUGH!!!"
18.) Learn to control your attention. To me focus is the most important ingredient to successful trading, when you're trading you will have a lot of distractions. You have to learn to control your attention, otherwise, you'll become a victim of it.
By having complete focus when trading you'll actually have a big advantage as a trader and as a result of this you'll be more stable and in control of your results! Make it your business to become the master of controlling your attention.
19.) Most traders have a problem with the emotions of fear and hope, when they are in a winning trade they have fear that the market will reverse so they close the trade early, while when they are in a losing trade they have hope that the market will turn around so they end up taking a larger loss, by either moving or removing their stop loss.
If you have a problem with this, work on switching these emotions with each other, when you are winning have hope and when you are losing have fear.
This will result in bigger profits and smaller losses.
20.) Create trading rules based on yourself, let your rules be unique to you. When I started trading I use to copy rules of others, from books mainly, but most of these rules didn't apply to my trading, they served no purpose... so I set out on a journey to form my own trading rules, rules that actually help me be a better trader. Even to this day I still add new trading rules if I encounter something I need to do more of or less of, then I form a rule about it.
Here are my trading rules:
21.) Take it one trade at a time. Making One Good Trade is about having the skills to spot and capitalize on excellent risk/reward opportunities over-and-over again. There will of course be losses along the way, but if controlled, the long-term probabilities work themselves out over time. Just follow your system and take it one trade at a time and one day at time!
That's it, of course we could add hundreds of points here, but these 21 points will surely help you become a better trader!
Good luck and happy trading!