The rewards earned by the top 1% of traders can indeed be significant, often due to the losses incurred by the remaining 99%. To be part of this successful group, traders should adhere to a few crucial self-made rules:
1.Specific risk-reward ratio: Traders must determine their desired reward and assess the amount of risk they are willing to take. It is important not to be overconfident or refuse to acknowledge flaws. If a trade reaches the stop loss, it is crucial to accept it and avoid further losses by sticking to the trading strategy.
- Avoid over-trading: Emotional impulses driven by greed, desire, and impatience can lead traders to take advantage of every small market fluctuation, resulting in excessive trading and capital loss due to increased brokerage and charges. It is important to exercise self-control and avoid over-trading.
- Develop a definite trade setup: Many traders focus on having elaborate office setups and multiple trading tools but lack expertise in actual trading. It is important to have a deep understanding of trade setups and precise entry-exit points, as well as setting target prices and stop loss levels. Traders should focus on gaining experience and expertise in a few specific strategies through backtesting, paper trading, real trades, and continuous learning.
For traders who are eager to jump into the real market without understanding concepts like backtesting and paper trading, AlgoBulls offers an algorithm-driven platform. It provides ready-to-use accurate data for backtesting and paper trades spanning over two years. Traders can input the desired testing period, track profit and loss, and run the strategy. AlgoBulls generates comprehensive reports on profitability, trade volume, and other relevant metrics.
Additionally, AlgoBulls enables traders to execute strategies in real-time, taking care of profit targets, stop losses, risk management, and order tracking through its efficient backend support.
By following these principles and utilizing the tools and support provided by AlgoBulls, traders can enhance their trading performance and increase their chances of being part of the successful 1%. However, it is crucial to remember that trading involves inherent risks, and comprehensive risk management and continuous learning should always be prioritized.