Trading Habits: 39 of the World\'s Most Powerful Stock Market Rules pdfdrive com

The Power of Habits

“The right trading behaviors start as rules and evolve into habits.” – Brett
Steenbarger
In athletics, business, and entertainment, the top performers are those that
carefully consider every action they take. The elite have trained themselves to be
nimble; habitually doing the right thing, at the right moment. Their years of
study and practice have taught their mind and body to react without hesitation,
regardless of pressure or uncertainty.
When first studying a winning technique, the process is mechanical and
thoughtful. “Do A, then B, and you will likely arrive at C”. Speed in action
comes from knowing exactly what to do on a deeper, subconscious level. Once
you know the right move to make, the final step is to commit to a regimen of
dedicated practice. Only then will you be able to outperform your opponents.
In trading, the first step is to learn what you need to do in order to be profitable.
Education should be your first priority. Nurturing your comprehension of trading
vocabulary is critical to your success. Trading methods, trading systems, trading
plans, risk/reward ratios, and win rates can sound mysterious to newcomers.
Find good sources of trading information and learn as much as you can.
Continued learning through chart studies, backtesting price patterns, interacting
with experienced traders, and reading great trading material is are the best habits
a new trader can develop.
Always focus on being better today than you were yesterday.
Another way to gain an advantage over your opponents is to trade with
discipline. Most traders are trading based on their own predictions, opinions, and
emotions. These are the worst trading signals. Instead, develop trading rules that
will guide you. Replace your opinions with trade signals, your ego with position
sizing, and your emotions with a trading plan.
When you have the right set of rules and follow them long enough, they will
slowly become part of your trading personality and style and you will follow
them on a subconscious level. You will know that you have reached trading

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maturity, when it becomes uncomfortable to break your trading rules. This
signifies that they have become second-nature to you, and they’re more powerful
than your emotionally driven impulses.
Developing and practicing powerful trading habits has made me successful in
the stock market for more than 20 years, and they can help you, too.

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