1. Normalize following the trend
There is this old, normal saying; the trend is your friend, and indeed as a trader you are expected to be careful of where the market is heading before you make a decision. It is said and clear that the market spend about 60% of its moves in a trend it might b a downtrend or an uptrend. This means that it's more better to be a trend trader because you put yourself in a position of plenty market opportunities.
A trend is usually a long term market structure, meaning it last for a long period of time and if you neglect the trend it means you will be in the sideline for a longer period, the opposite applies when you make trends your friends, it means you will be in the market probably holding your profits for a long period, in most pf the time.
Moreover, the market structure are form fundamentally by waves and we have the impulsive and the corrective wave. In a ranging or non-directional market these wave are usually the same size while in a trend the impulsive waves are always bigger than the corrective wave and that’ s where trend traders make their money.
2. Use one method, understand it
This is the downfall for the majority of traders, I have taught, mentored and assisted a lot of traders, I can boldly say that this is their weakness. Today they are enjoying this system and tomorrow they say the same system is crap so they are looking for another one and they find it, the same process repeats itself; the trader enjoys the new system for three days and the it becomes crap ,he begins his search again, for a new system.
Usually the system is never the problem and most systems work, but obviously not all of them. I advice every trader to spend enough time testing, assessing and understanding his trading method or system and once you clearly understand it don't just change it easily unless your records says it doesn't work
3. Always consider the news
For better results we shouldn't be choosing sides as traders, some choose price action others fundamentals and others sentimental but the ultimate trader uses all this aspects to his advantage, he considers Fundamentals just as he does with his beautiful patterns of price action.
This method of taking all market aspects to analysis helps in preventing market surprises. A price action trader can open a trade and all of a sudden the price changes direction with huge candles and when he asks his friends of colleagues about that move, he might hear that its because of news . His ignorance have costed him money. Always consider all market aspect which are capable of influencing market moves.
