Have you set yourself up to fail? Here are the bare minimum you need in order to avoid failure as a trader:
Trade only with money you can afford to lose. Many new traders trade with their milk money and wonder why they feel scared when they enter and watch their trade. If you want to trade calmly and rationally, you must trade with only money you can afford to lose. If you have nothing to fear by losing, you’ll feel more relaxed. You will trade better and make less errors.
Don’t trade by the seat of your pants. Map out your trades in detail. Know where to enter or where to exit. When you execute the trade, stick with your trading plan. Know what to do and when. Amateur traders do the opposite. They have no clue where to enter and exit. If they do have a plan, it’s probably unclear and difficult to follow. They don’t know what to do so they eventually panic. Creating a plan and following it will help you avoid costly trading errors.
Don’t miss sleep. When you’re tired, it’s hard to concentrate. Your emotions take control of you and you feel deep frustration, even when you face a minor setback. Concentration requires energy, and when you’re tired you don’t have enough energy to trade and end up making errors and losing money. Get sufficient sleep so you can stay alert and are ready for action.
Trading is hard enough. You don’t need to sabotage yourself. By trading with money you can afford to lose, sticking to your trading plan, and making sure you get enough sleep, you give yourself the best chance to grab some pips from the market on a consistent basis.