What makes a good trader? It’s not the time frame or the integument they trade as there are winners and mostly losers in all areas of trading.
In my experience, and maybe I am wrong, it simply comes down to this:
1) Take small risks. Think what drawdowns you will suffer if you lose on the trade rather than dream about winners. In fact think on every trade you take you are going to lose. So prepare for it. If it does turn out to be winner it’s a nice bonus. when your stop is hit for a loser…you expected it. It’s no big deal move on. If you find your-self getting too excited about gains or nervous about losing positions it’s because you are betting too big. Tone it down. When you do not care you have it right.
2) Cut your losses. Everyone is wrong. I am of the opinion no-one knows what is going to happen in the future. We might pretend to make complicated predictions but that’s all it is. So when you have a loser. Get rid of it. Move on. Cutting losses is good trading. Hanging on is suicidal for your account.
3) Let those winners run. Occasionally some of my best moves have surprised me. No I didn’t know stocks like TASR, TZOO, HANS, CROX, DRYS would move so big. I simply let them run. Getting out of winning trades too quick is pure bad trading. Some people just never get it.
There you go. For all the extra padding and non-sense out there is boils down to these three principles. I’ll bet every times you have suffered a big loss it was because you broke one of these rules (me too but you have to learn from it)