No matter where you are this weekend, you can become a better trader. That's because progress is about deliberate practice. And it's hard to carve out time while the markets are open for deliberate practice.
But with markets closed, now's a good time to reflect on what went right last week and what you can improve for next week. To do that, we've compiled our favorite resources of the week. Here are three resources to help you trade better — all of which can be reviewed in less than an hour.
They include a look at what separates successful traders from struggling traders, a video interview with a 35-year investing legend about how to build a career in trading, and the latest Limit Up podcast with about finding your trading stride.
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1. What Separates Successful Traders from Struggling Traders
What is the most important factor that separates successful traders from unsuccessful traders? It's not the number of winning trades versus the number of losing trades. In fact, a lot of traders that lose money have more than 50% winning trades.
The most important factor that separates winning from losing traders is risk management. In this blog post, we looked at the data behind more than 400 trading accounts from traders that earned funding in 2017. The results are staggering.
Half of losing traders violated their personal daily loss limit on one of their trading days. Comparatively, just 20% of winning traders did. Similarly, losing traders allowed themselves to lose as much as $735 on their largest losing day. Winning traders kept their largest loss to under $600 on average. And, critically, the data firmly debunks the myth that higher risk means higher reward.
Check it out and compare these statistics with your trading.
Reading time: 10 minutes.
2. How to Make a Career Out of Trading
Yra Harris is an investing legend who built a 35+ year career in trading. So there was no better person to talk to about how to compound your trading skills and build a long-term career in trading than Yra. Yra was generous in his time and advice, so this is definitely a must watch.
Read time: 25 minutes.
3. Finding Your Trading Stride
Trading is hard. And just when you have it figured out, things change. That's why one of the best qualities in a trader is the ability to adapt. Patrick Rooney demonstrated that over and over in his career trading. First starting out on the floor, he transitioned to electronic trading where he found success. Until he didn't. In reviewing his trading, he found that he made a lot of costly discretionary errors. So he automated his strategy to remove some of his trading weaknesses.
In this interview, he walks host Eddie Horn through that thought process and how he went about adapting his trading style through the years.
Listen time: 42 minutes.
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