Do you keep a journal? Do you track your trades and take notes on lessons learned? Are you honest about how you feel when you’re participating in the market? Keeping a journal of your trades is the best way to quickly improve from a novice to intermediate trader.
The following books will help develop a solid foundation:
- Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications by John J. Murphy
- A Complete Guide to Volume Price Analysis by Anna Coulling
- The Daily Trading Coach: 101 Lessons for Becoming Your Own Trading Psychologist by Brett N. Steenbarger
- How to Make Money in Stocks: A Winning System in Good Times and Bad by William O’Neil
Focus on mastering the following trading strategies that apply to all timeframes:
Lastly, develop a system of risk management and position sizing that abide by the following rules:
- Always have a stop loss!
- Do not risk more than 2% of your net liquidity (total value of your account) on any one trade.
- Don’t take a trade if it’s unlikely to return (reward) at least 2.5 times what you’re risking.