Today, I’m sharing something in a slightly different format.
The points below aren’t problems to solve — they are principles to remember.
They aren’t my personal inventions, though I fully agree with them and have made them a part of my trading approach.This is a curated collage of insights, recommendations, and lessons from experienced traders, drawn from books and years of practice.
1. Spreading yourself too thin by entering positions in too many assets at once.
For an investor, this is acceptable and even necessary. But not for a trader or speculator. Investors have different behavior patterns in the market and different reasons for buying certain assets.
Speculating is a much faster type of trading, and it’s simply impossible to keep track of too many assets in a portfolio. It's better to focus on 3–5 positions.
I know one very successful speculator who trades only one asset—and does so quite successfully. For me, he's a great example that if you know how to trade well, you can make decent money even on a single asset.
2. Switching to Other Timeframes.
If you entered a position on the 1-hour timeframe, then the entire trade — including stop-losses and take-profits — should be based on the 1-hour chart.
3. Trying to Predict Market Moves.
Everything you need to know is already on the chart. The chart is the best insider. Don't try to guess or gamble — that's not how money is made in this business. If you want to gamble, go to a casino. Before news or economic data is released, the market usually already shows patterns signaling a potential rise or fall.
The only exception is trading around genuinely major news events, like Trump’s tariffs — but you will usually hear about such events without even following news feeds. These are very powerful moves, and the real danger is not uncertainty about the direction, but extreme volatility. Often the first reaction to the news is false, and you might get stopped out prematurely. It's better to wait for confirmation — for the move to actually start.
For example, if you see all the signals on the chart suggesting a decline, but after the news the market shoots up, don't rush. If that entire upward move gets erased by a downward move and the price starts making new lows, _then_ you can open a short position.
Even better, wait until the next day. If the move is real, it won’t end in just one or two days.
4. A stock trading at a high price doesn’t mean it can’t go higher — and vice versa.
You shouldn't short a rising asset, just as you shouldn't buy a falling one. Just keep that in mind.
Success in trading comes not from winning every trade, but from focusing on high-probability setups.
The points below aren’t problems to solve — they are principles to remember.
They aren’t my personal inventions, though I fully agree with them and have made them a part of my trading approach.This is a curated collage of insights, recommendations, and lessons from experienced traders, drawn from books and years of practice.
1. Spreading yourself too thin by entering positions in too many assets at once.
For an investor, this is acceptable and even necessary. But not for a trader or speculator. Investors have different behavior patterns in the market and different reasons for buying certain assets.
Speculating is a much faster type of trading, and it’s simply impossible to keep track of too many assets in a portfolio. It's better to focus on 3–5 positions.
I know one very successful speculator who trades only one asset—and does so quite successfully. For me, he's a great example that if you know how to trade well, you can make decent money even on a single asset.
2. Switching to Other Timeframes.
If you entered a position on the 1-hour timeframe, then the entire trade — including stop-losses and take-profits — should be based on the 1-hour chart.
3. Trying to Predict Market Moves.
Everything you need to know is already on the chart. The chart is the best insider. Don't try to guess or gamble — that's not how money is made in this business. If you want to gamble, go to a casino. Before news or economic data is released, the market usually already shows patterns signaling a potential rise or fall.
The only exception is trading around genuinely major news events, like Trump’s tariffs — but you will usually hear about such events without even following news feeds. These are very powerful moves, and the real danger is not uncertainty about the direction, but extreme volatility. Often the first reaction to the news is false, and you might get stopped out prematurely. It's better to wait for confirmation — for the move to actually start.
For example, if you see all the signals on the chart suggesting a decline, but after the news the market shoots up, don't rush. If that entire upward move gets erased by a downward move and the price starts making new lows, _then_ you can open a short position.
Even better, wait until the next day. If the move is real, it won’t end in just one or two days.
4. A stock trading at a high price doesn’t mean it can’t go higher — and vice versa.
You shouldn't short a rising asset, just as you shouldn't buy a falling one. Just keep that in mind.
Success in trading comes not from winning every trade, but from focusing on high-probability setups.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.