I share my 9 secrets or essential instincts that every trader should know in order to be successful in trading.
- Be Yourself:
You’ve got to go through the process of learning about yourself and what works for you. Trading is a journey of oneself!
- Trade according to risk:
New traders tend to focus too much on the entry and not enough on where they’re wrong and where they’re going to exit a trade. My risk price is never going to change because it’s one of the most important elements to my trading strategy and edge.
- Always be a student:
You have to wake up every day with a humble attitude knowing that you’ll never be done learning about the markets or about yourself during your trading career.
- React with reason:
This is an easy one to get wrong, everyone has this problem at some point even myself! This is super important, to ask yourself if you’re really trading for a good reason or a set up or if you’re being emotional about it. Great traders are forced into trading by their system.
- Be aggressive:
If everything is working for you, and you’re making money, and your strategy is on point you need to be aggressive. You have to wait patiently for an opportunity to be aggressive and push your winners, this an overlooked part of risk a management.
- Get out of losers:
Bad days can turn into horrible days if you don’t learn this one. If you develop an instinct to just get out when you know you should, you’ll just do it, this will save you from a loser growing into a bigger loser.
- Never let winners turn into losers:
It’s all about being smart with your risk management, never let the market take away what it already gave you if it’s equal to what your risked initially. I remember times where everything went right and suddenly i was giving everything back and bum my instinct turned on and I closed trades in order to not let this winner turn into a loser.
- Know when to stop:
I remember when my mentor told me ” Anthony never be embarrassed to be up anything ” my mindset was poor and that was exactly what I needed to do. Life happens and you need to know when you’re not in the best shape mentally or emotionally, this can make or break you.
- Be disciplined:
This is more than a rule, it’s an instinct. If you’re undisciplined in your normal everyday life, you’ll be undisciplined in trading. Because trading is a lifestyle and since everything that happens in your life will affect your trading your discipline need to be universal in your life in order to get the max out of your mind.
Futures Radio is a weekly talk show hosted by 22-year futures veteran and CME member Anthony Crudele, an ex-pit trader and one of the first to trade the E-Mini S&P. Each week Anthony talks with traders, CEOs, and other proven market participants about relevant trading and investing information. Past Performance is not indicative of future results.