How to set yourself up for success as a trader, Part 2

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23 MAY 2024

Article provided by:
Destiny Algo(rithm) by Monolith Quant Research Inc.

This was written in mind for our community of traders. I hope this helps you in your journey on becoming a successful trader as it has helped me. - Tony

Part 2

Continued from Part 1

Now that we have the right mindset in place to set ourselves up for the greatest chance of success, lets talk about what actions we can take as a trader on a daily basis.

Taking action:

Studying the charts
What do we mean by that? Analyzing our candlestick charts on a daily basis spending at the very minimum of 30 minutes a day (as a start) getting familiar with the movements and patterns that will appear. Each asset or trading pair that you are analyzing will have their own unique characteristics and movements. Being intimately familiar with how price action will occur for each trading pair will increase the likelihood of an accurate analysis and prediction. Think of the chart you are analyzing as if you were to meet a new friend that you get along with well. You are excited to learn everything about them. Once you are familiar with them and know them well you will likely know how they will behave in certain situations. The same is for analyzing charts. Place paper trades and make sure to record your entry and exit prices including the profit and loss. Although 30 minutes is just the bare minimum so lets aim a bit higher than just the minimum. Spending 2 - 4 hours each day at a daily frequency analyzing charts is normal. Pick any field or profession you respect and think of how many people are in that field that you have a high opinion of that you hold in high regard. Now know that there are fewer successful traders in trading than there are successful professionals in that field you were just thinking of. If you don't expect them to be experts of their field by spending only 30 minutes a day perfecting their craft why would you expect that for yourself?

Going beyond the charts
We can only observe so much by analyzing the charts. In the 2 - 4 hours we dedicate each day to studying and perfecting our craft we should be studying resources available everywhere. Whether it be books or online. Study different candlestick patterns, price action patterns, market levels such as Wyckoff's distribution theory. Learn different order types beyond just market and limit and know which order type to use in each and what situation. Be familiar with the user interface of the platform you are charting with and placing orders through.

Trading psychology
Accumulating the required thousands of hours of studying in the quest of knowledge is the easy part. Anyone can put the time and effort in to study however accumulating knowledge and acquiring wisdom is two different things. What do we mean by that? We are talking about being aware of our own emotions while we trade and learning from the mistakes that we inevitably will make. Now that you've studied the charts and you're familiar with the characteristics of the asset you are trading it's time to get familiar with yourself and understand how you will behave when under stress from a trade going against you or going through an adrenaline rush from making your previous annual salary in mere minutes. Both fear and greed are some of the most powerful emotions that a person can go through. Be familiar with both and know how you will behave in both situations and allow neither be our downfall on our journey of becoming a successful trader.

Jump start your trading journey today with Destiny Algo(rithm) Trading Academy, led by world class industry experts. Visit our home page for more information.

Destiny Algo(rithm) by Monolith Quant Research Inc. - Helping you find your rhythm (in the market)
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