Your trading should be looked at as your business. Many businesses have a process on how they go about their day to day activities. Financial markets can be very complex but treating it like a business will keep you in for the long run.
Have a strategy
The definition of strategy is “a plan of action or policy designed to achieve a major or overall aim.” What is the overall aim for any trader? To be profitable in the long term, while mitigating risk. A trading strategy shouldn’t be some overly complex system. Rules and conditions should be met when you are executing a position. By learning a strategy,that’s backed by a true edge and market methodology, you will learn the nuances of it.
Track your trades
Find a online trading journal or create your own. I use one that shows the equity curve, win percent,drawn down, P/L and average risk. This is extremely helpful and is a necessity!A better insight to how you are performing will help you see where you are going wrong. There are many trading journals that will link with your broker.Using just an excel spreadsheet and seeing your risk, and P/L is better than nothing.
Watch your risk
Don’t have the methodology of trying to double an account. That’s not how trading works. Sticking to .5%-2% is a good risk range. There may be point to where you are extremely confident in a position and it’s okay to risk a little more than usual. It’s important to have a logical rationalization of why you’re risking more. Also, try to be somewhat consistent in what you are risking. As traders, we are looking to be profitable in our portfolio at the end of the month, or year. Our goal is to be consistent over time and not treat it like a casino.
Have a business/trading plan
Have a plan of what your strategy and edge is, so you can visually see it. Write down the conditions or rules that need to be met when executing. The more you are able to see what you are looking for the more natural it will become. Know how much you are going to risk and what your risk personality is. Having something written out in front of you