10 Lessons from Trading Champions 🏆

From my Interviews with US Investing Champions, Hedge Fund Mangers, and Veteran Traders

This article is my 3rd Atomic Essay. I will be writing 30 Essays in 30 Days about trading concepts and risk management. If there is a topic that you would like me to cover drop it in the comments below. Enjoy!

Also let me know what your favorite lesson is in the comments section and please share if you found this helpful!

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The following are 10 Lessons I've learned from my interviews with US Investing Champions, Veteran Traders, and Hedge Fund Managers.

1. Trading Takes Patience and Hard Work

Everyone of the traders I’ve interviewed worked for years to master one specific style and timeframe. Specialize.

2. Stay Positive, Stay Focused, Stay Disciplined

Treat any mistake as a learning opportunity. Commit to learning and judge your trading based on whether you executed your plan, not whether you made money or lost money on a trade.

3. Stay in Tune with your own trading 

Be aware of how you are performing. Practice progressive exposure & scale up when you are trading well and scale back when the market tells you to.

4. Focus only on High Potential Stocks 

Regardless of your style or setup, focus on the top 1% of opportunities. Be incredibly selective.

5. Use charts to identify setups and time trades.

The best traders I've interviewed use technical analysis to judge supply and demand, risk/reward, and to manage risk & positions.

6. Manage Risk Tightly and Use Stop Losses

This is non-negotiable. You must focus on proper risk management through position sizing and stop losses.

7. Establish Routines and Practice Discipline

Prepare for anything. Have routines that incorporate visualization and set up plans so that during market hours the sole focus is execution.

8. Sell Systematically and Objectively

Sell rules are essential. You need to balance maximizing the trade for your timeframe while also protecting your downside and locking in profits.

9. Concentrate into positions

Sizing into strongly trending positions is what yields performance. Remember, risk must always be managed.

10. Conduct Post Analysis

Look at the truth of your trading results. What can you improve? The best traders are constantly looking to identify and address their weaknesses.

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For more detail, watch my presentation of these 10 Lessons:

What are your thoughts? Let me know in the comments and leave a like if you enjoyed. Also please share if you found this helpful!

Take care!

Richard