Hold On – Before You Trade
I don’t care if you’re new or old to the trading business.
This will apply to you, regardless.
In this short but vital article, we’ll go through 3 of “Before you do this – You need to do that”.
#1: BEFORE YOU TRADE – LOOK
Trading is a strategy game.
You don’t just thumb suck a trade and guess where the market will head.
No, you have your criteria on:
• The markets you’ll analyse
• The time frames you’ll use
• The criteria you’ll follow
• The entry, exit and risk levels you’ll apply
Before you take a trade, you need to first look and find synergy between your strategy and the market you’re looking at.
#2: BEFORE YOU SPEND – CALCULATE
Trading is a risk game.
You don’t just put in all your money in a trade because it feels good or looks too good to not risk.
You are not in the game to be right… You are in the game to play calculated risks with your winners as well as your losers.
I have a 2% risk rule per trade, in order to bank a 4% gain.
This is the best strategy that works for my 18 year old, 4 step strategy, 62.5% win rate MATI Trader System.
Whether the trade looks incredibly attractive and is almost a given, it doesn’t matter.
Calculate your risks, follow your rules and calculate before your spend.
#3: BEFORE YOU GET EMOTIONAL – REMEMBER
Trading is a mind game.
It can play with your emotions at times.
• A loss can ruin your week.
• A win can make you feel like a megalomaniac for a day.
• Your birthday can make you think you’ll profit that day.
• Your previous loss can cause you to doubt your trading strategy.
• Your previous winner can scare you.
“You need to remember that the financial markets don’t know you, care for you and remember that trading is a forever business.”
Next time when you feel those emotions taking over, just remember that sentence…
Trade well and look after yourself,
Founder, MATI Trader
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