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Working for Amplify, I get a lot of questions from people who ask what makes a good trader. (Routine & Discipline) But it might be more important to look at where most slip up. Having worked with hundreds of traders of all experiences, the most common factor....
in not reaching the level they want is not sticking to their plan. Have seen some really good 'quotes' on Twitter recently about this. I can't remember from who I saw it so forgive me if it was you! but it said how some traders can make the most money breaking their rules.....
on a trade (that could be sizing up/bigger stop/holding over news or not even having a stop) BUT it also said how this gives traders that false sense of security and this leads to their biggest loss when they yet again break their rules.
The other quote I really like is in @trader1sz twitter header picture. I spoke with a friend last Thursday who is looking to get into trading and told him 'waiting & fomo' really catches people out and he just couldn't grasp how the traders would lose their hard earned money.....
by not waiting for what they actually want to do. Emotions is of course the answer but when you really think about it, why on earth aren't you sticking to your plan?
My dad was telling me stories from 2008 and how good traders blew their accounts amidst the crisis even though they had an incredible record leading up to that point. We are all susceptible to losing it and it is so important to keep that discipline!
He also told me one common thing about the best traders/investors he knows.... He said all of their 'best trades' were when they cut a big loss early. Think about it
