Trading for a living doesn't have to be complicated but it does require some basic business practices and acumen.
If you are serious about trading for a living, it’s important to focus on a small list of ‘best practices,’ and running your trading the same as if you were running a business. In fact, it IS a business. You need to be the CEO of your trading business. It’s a concept we talk about all the time in the Counter Punch Trader traderoom.
If I had to name the top ten essential things that are non negotiable, must have items, it would be these things:
- Dynamic Strategy that doesn’t try to do too much (identifies high percentage setups)
- Choosing the right chart(s) and market(s)
- Sufficient capital
- Well researched, understood, effective Tradeplan
- Proper Money Management
- Sufficient skill and ability for proper, near flawless trade execution (practice)
- Best trading tools (computer, internet, platform)
- Clearly defined goals (consistently take what the market wants to give you)
- Sufficient Belief in what you are doing (training)
- Discipline and confidence
For me, it’s about staying focused on my modest goals. My number one goal is to be able to quit with a positive result on “most’ sessions while controlling my drawdowns. I accomplish this with minimal trading and proper money management. As my account and equity grows, I increase my position size accordingly. Trading more is not the answer for growing equity. I guess I should have put patience on the list as well. It takes time to grow one’s equity but all businesses need time to grow. The beauty of this is that we don’t have to trade more to make more. We just use our money management plan to increase our position size as our account grows and like this, we can hit our financial goals without too much risk exposure or massive time commitment.
You see many examples on this blog showing ‘one and done’ examples. That’s because we are following the key concepts on the above list; effective tradeplans, goals, etc. Our plans are taking what the market wants to give us and hitting their goals with the very first trade. Thus, one and done. This doesn’t happen everyday and sometimes we have to take a few more trades but always within the rules and context of our plan. We never have to guess IF and WHEN to take a trade.
YM finished One and Done with this Dynamic Momentum Range Bar Chart; Grabbing + 123 points with two positions
Our Soybean Futures Tradeplan is literally, a One and Done Plan, Win or Lose
EURUSD today was a perfect example of taking what the market wants to give us with its One and Done Session, grabbing 12 pips (10 pips after spread costs). That’s all the market had for us but it was enough to hit our goals. The other day we had a +100 pips trade. Steady equity growth, and quitting positive a majority of the time is what achieves our financial goals as traders. That’s what trading for a living is all about.
If you can execute one trade per day, win or lose, and stick to the tradeplan — basically running your trading business the same way each and every morning, your odds for ongoing success would be as high as it can be, putting you in a very advantageous position for ongoing equity growth. Can you envision yourself running a part time trading business? That is what trading for a living is all about.
Make sure to register for the upcoming Counter Punch Trader webinar where we will be discussing how to trade for a living and beat the markets on a consistent, ongoing, equity growing track.