Lessons learned - part two

Here is the second part of lessons:

1. Training, training, training - nobody has become professional with a lot of training. This goes for trading as well. You can read hundreds of books but that still doesnt make you a professional trader not even a begginer. Yes books are important but practice is as well.

2. Pattern recognition - in time you will be able to recognize patterns and act in accordance to this patterns.

3. Markets evolve - markets change all the time. You have to learn all the time in order to stay in touch with the markets otherwise time and change will put you out of business.

4. Emotional stability - you be prepared for drawdowns and not become emotional instable. Every path has its ups and downs.

5. Finding your type of market - some markets are more volatile than others, as it goes for the stocks. You must find how much action suits you.

Lessons learned - part one

I want to write about some important lessons i learned recently. I hope it helps you as well.

1. Emotions affects trading - You woulnt believe how much emotion effect trading. If you are in a bad mood this will effect your trading wheater you like it or not. So first clear your head and put in order your emotions.

2. Consecutive losses - even the best traders have experienced a time of consecutive losses. They will impact your trading and your emotions. This will happen more often that you are prepared for. Be ready

3. Too much winnings - will disrupt your emotions. Trader often feel overconfident and cocky. This is the time they are not on the edge all the time and sooner or later mistakes occur. Dont become overconfident if you are have a winnin streak.

4. Position sizing - one way to hurst your trading is position sizing. Too large positions hurt your portfolio and hurt your emotions. This can trigger exaggerated emotional swings in either way.