As much as was involved in getting astronauts to the moon, at least that much, indeed, maybe even more is involved to get you to a point of successful trading. There may not be as many steps but they are so vitally important to your success:
Formulate A Game Plan Using This Exact Formula
How much will you risk on the day? You just can’t go wrong with the 2% of your account rule here. If you like go less than 2 but don’t go more. This will allow you to trade another day. 2700
How much will you risk on the trade? Divide the answer to the first question by 3 or 4. This will allow you the ability to recover from a losing trade and take another trade. 900
At what dollar amount will you stop trading? Don’t be greedy. If you are trading a $10K account then $25 – $100 is an exceptional daily return.
Some additional thoughts:
Trade when your market moves the most.
If you have taken 2 winners day trading and you have not met your profit goal – one of two things is happening: you are not risking enough or you are exiting too early. If it is the first problem, then see the formula again. If it is the second, why assume the market will turn around and scalp your contracts? Assume the market will keep going and always hold a runner.
Don’t over trade. See the previous paragraph.
Don’t ignore a profit! If you feel you have to hold for an R:R of 1:1 or 1:2, then I must tell you my dear, frankly, the market doesn’t give a ding dang about your risk to reward. The market fluctuates between real support and resistance and not your demands. Learn to read a chart and take profits when and where you should,
Don’t move your stop so you can afford a trade. Adjust your position size. What? You’re not position sizing? You always go in with 1 or 2 or 3? One word…foolish.
Going to the moon and a successful trading career have much in common. Both require dedication, skill, commitment and long hours upon hours of training. In the training phase (in trading the unsuccessful stage), both fields require humility. Are you humble enough to change your ways, to mirror someone else’s success … to change? The unwillingness to change your ways will get you kicked off the space program (or worse yet, killed in space) or in trading, wreck your confidence and your accounts.
If you need help…ask, please.