6 Consistent Trading Strategies I’ve Learned Over 25 Years.

Psychological and emotional control are critical.

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Thanks for reading. My husband Andrew Owens wrote the article. I edited. The following are only suggestions. All traders are responsible for their own transactions.

Over 25 years as an equities trader, through numerous agonizing bear markets, I’ve learned that trading like any skill, requires extensive practice, grit and emotional self-control.

I’ve had to learn not to get cocky.

Example. During the pandemic, I made a lot of money on so-called “pandemic stocks” (ie. Teladoc, Zoom, Peleton, et al). They all went parabolic, so I decided to keep 50 shares each to see if they would continue to grow. Ultimately they sold off 75% but I didn’t sell, and got stuck holding the bag.

Lesson learned. I should have put a stop-loss in. I’ve had to learn to take a loss when a trade gets away from me.

It takes time and learning from mistakes to become a consistently profitable trader. Malcolm Gladwell, author of the book Outliers, suggests that it takes 10,000 hours of intensive practice to master a skill.

But it’s more complex than that.

Anders Ericsson, co-author of the research Maxwell cites in his book, found that there’s another important factor besides how many hours someone works at a skill, to achieve excellence.

How good the student’s teacher is.

In trading terms, this translates to reading numerous books by successful traders. It means doing extensive homework.

I recommend the following trading strategies:

1. Everyone pushes paper trading in the beginning. Don’t do it. Paper trading creates false confidence. It doesn’t prepare you to manage the emotional roller coaster of real-time trading.

In the beginning trade ten shares so you understand and feel that you can lose money. And so you’ll learn to put a stop-loss in to prevent a trade from going against you. Emotions are inherent to every trade so you have to learn to manage the roller coaster to be successful.

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Human Nature - Laura G Owens - Writer

Social commentary. Huffington Post. Personal essays. The human condition. 15 years researching and writing about mind & body natural health.