Some traders have solid strategies but still struggle to make the most out of their trades.
In my opinion, trading success comes down to two key things:
- First, you need a good strategy,
- Second, you gotta know how to make that strategy work for you and actually bring in profits.
Once you grasp the first part, it’s critical to nail the second one too, or else you might just end up as a trader with a decent strategy but no profits to show. When you see those traders who turn small accounts into big ones in no time, it’s not just their strategy that does the trick. It's also about knowing how to really maximize profits while keeping losses to a minimum.
Maximizing profits is one thing I wanted to learn in trading. After got some profits from trading I have alwasy a tendency to cashout sometimes rather than invest or reroll it as capital on trading again since Ive got plenty of experience losing those profits than cashing them out instead. I like the strategy but isnt those are general advise.
Why not mention specifically technical analysis and fundamentals?
Because it also requires continuous learning and strategies will follow how technical analysis and fundamentals work.
In addition, every outcome obtained is influenced by the final decision on a trade related to the psychology of trading.
Not only explicitly strategy, but also psychology that will fight an important battle on the end result of a maximized profit.
People who already do a lot of trading will have a stronger and more stable mentality and thus be able to make a fairly flexible strategy.
I don't think it's all about strategy and technical analysis. It's all about risk management IMO. It's essential to understand the importance of risk management and implement the correct stop-loss orders and diversify investments to protect your capital. It's best to preserve. Don't gamble away your capital. You would be doing that without risk management.
Or third, it's the majority that really losses in the trading and that's why it's hard to win most of the traders. And maximizing profits can even lead to losses.
To be honest, it's always the case. We should have this and that strategy and then what's next? they're all theoretical but when it comes to the actual trading. Whether we like it or not, many are losing money instead and that's a real thing in trading.
Yes that's the most basic things a trader should know before placing an order, they should have a stop loss and take profit based on their analysis on the market. Now, by having these doesn't guarantee you to maximize a profit every trade, one thing I learned in trading is that you will never know which is the peak or when it will reverse but there will be some certain area where it will hit based on your analysis but can't tell exactly the price, so instead of using analysis to take a maximum profit, use it to know where are some area where you can take profit or stop loss.
How?
I don't think a trader at the verge of maximizing his profit would lose same profit if already gotten, except he doesn't know the right technical tool to use to safeguard what profit he had already made. For example, if a trader has made a trade order and he is in profit, he could just apply the stop loss to either his entry point to hold back his capital even if the price jump or move on the wrong direction of his order or he adjust the stop loss to slightly at a point where he can take a little profit while allowing the trade to continue as he maximize his profit. Like if you are buying btc/USD at $107,000 and the price have already moved up to $108,000 , you can simply adjust your stop loss to $107,500 while the market is still continuing. By this example, you would have made $500 if the price comes back downward but if it continues up, you are maximizing your profit and still retaining your capital.
This is the problem many traders are having, they want to flip their small account size to a big one just as you said it here. They will think of using high leverage and be very impatient. This is how their accounts will be getting liquidated every time. So instead to be making money, they will be part of the 85% of traders that are losing.
As a trader, you must be able to understand the required strategies to be used in other for you to maximize your ability to earn more profits as a result of trading, this start with the strategy used, the management skills and competencies regarding trading and so many other influence this has brought us, if we can plan adequately, then to make it in whatever thing we are doing will come by ease, because we already had our own plan in place to ensure things work as we have proposed for them with our trades.
This is where it is important to put trust in the analysis and plans that we have made ourselves. And it is also important to be a disciplined trader in determining risk management. because with this the trader already has points where he has to take profits and where he has to make cutloss decisions so that losses don't increase.
And yes, a good strategy will not necessarily bring maximum profits if the trader cannot use it well. In this case it is about how we must stick to the analysis and careful plans that we have made. Don't let emotional conditions influence our decisions in trading.
Speaking about maximizing profits then its not something that you can be able to put yourself into that kind of condition from time to time. Why? There's no way that we can tell whether the market would be having its continuation or would be having its reversal on which simply means that you wont be that so sure on what are the possible approach that you would be seeing into your current open trades. Most of the time on which we do have our own take profit levels but whenever you do saw the volume or trend had become weaken then this is where you would be trying out to make those kind of adjustments on which despite on not to reach up those take profit levels on which at this time then this is where you would be trying out to secure your profits as much as you could or simply that calling it profit is profit.
Learning up trading skills is never been that easy and it does takes time and on the moment that you do able to gain up that experience then you do have that idea at least on what you should gonna do at the time that you have been able to notice up something. You would be acting out on it accordingly and since you do have the idea then it would be an advantage in compared into those newbies who dont have any idea on what they should gonna do.
Maximizing profits most of the time has to deal with the traders psychology than his strategy self, just like you have put it out you will simply re roll back your profit as capital and lose it back to the market because you were so confident on your strategy this time that you dont believe it will be hitting stop loss. This time you will need a very good psychology to simply stay within the risk management you started with, which is one of the hardest things to do as a trader, for me maximizing profits isnt all about putting in more capital because just one single loss will lead to liquidation but it is about making the most of the little capital by sticking to a proper risk management of not increasing leverage or even adding up your profits as capital.
I think it is usually a trap set by those so called mentors or influencers who usually flaunt their assets to the public, this makes newbie traders feel like once they get profits from the market the next is to actually maximize it or flip an account. Usually a trader that is after flipping an account usually lacks proper risk management because aside increasing their position size from the previous ones they were using they usually fail to add stop loss or even apply their full risk management. This is the kind of traders you see even doing the revenge trading after few losses just to get back a the market
All traders want to do that, especially to get maximum profit. It's just that what happens is different, expecting maximum profit also takes greater risks. There are also traders who do not push to get maximum profit, as long as the profit is satisfactory and according to target, there is no need to be greedy to get a bigger profit. The market can move to change direction in a short time and change the profit situation into a loss.
Every trader has their own strategy and planning. Stay focused on what you do. The most important thing is not to push yourself too hard.
This very correct, some traders especially newbies do think that all you needed is a strategy and you will be good to go not knowing that beyond just formulating and using a strategy is the ability to stick to the utilization along side discipline with such strategy, no strategy is enough, i mean we don't get to see any on a scale of 100 they are mostly 75 - 89 and we consider it a good one , literally even a 90 is very difficult to see and there's actually no holygrail as a strategy while trading.
Alongside all of this, we cannot emphasize the importance and the place of your emotional management, although that is expected to be factored into your strategy in other for your strategy to be complete and so does you risk and money management should come in hand and very importantly is the role of disciple, you have to be disciplined enough for you to be able to stick all of the strategy after you must have gotten one with which you desire to work with as a strategy.
You should stick to what works for you. It's better to cashout your little profits in any trade that is profitable than using maximalize capital that has always led you to losses. Sometimes, traders are greedy and use the strategy that will liquidate them faster than using stop loss to limit their losses. Big profit is tempting and comes with very high risk.
Flipping small amount to big in short period of time may not really be possible especially in the kind of market we have that just goes seesaw in just few hundred range even when you're good in you stop loss and balancing your leverage. While you win big, your loss will also be magnified.
You need a large capital to make it bigger which the strategy will work better with larger capital. The more you have, the easier you can make money when your strategy is solid.
To get maximum profit I think we not only need to find a way to catch fish but also must be equipped with knowledge about how to keep the fish from returning to the river, yes I'm sure you understand what I mean, finding a way to get maximum profit is very possible but it's useless if for example we don't have a way to keep our money properly.
This means that there are several other things that should be included in the list above, one of which is money management, emotional control and other things related to risk management, successful traders are those who know how to find profit in the right way and also know how to keep their money well.
It is important every trader knows about this two things youve mentioned because itll shape how they will become profitable overtime in trading. The trading market has been a lot full with many traders without any good result to show for their efforts so far in trading. Maximizing profit is also important in trading and anyone that does not know how to utilize that will only take a longer time trading without seeing any significant returns, profits from many trades theyve taken in the market. Those two aforementioned works hand and in hand and when youre at a liberty of utilising them both, it becomes a necessity you do it earlier.
This is also important and many traders overlook it and the results is always a negative result on their capital after losing them to the market due to lack of risk management which should be a top notch observant by any trader. While trying to maximise your wins, one should also put risk management into consideration because they all form how you can become profitable in the end.
There are several options on how to keep a fish so to speak. It is now on the hands of the person or trader how he can keep it. As there is no single strategy that you can use, it is on you how you will strategize to sustain and grow your profits over time. The skills and knowledge that you have acquired throughout your journey will be utilized. Because if not, you will go back to square one. Hence, it is important to continue learning and exploring possible routes how to earn profit.
Its common for traders to have a working strategy that made them profitable in the market, but only few of the traders are able to maximize their profits, the rest are just gaining minimal amount.
Simply because, trading isnt just about knowledge, skill and strategy, but positive attitudes are also crucial in trading, and not all traders can be patient and resilient despite of their mistakes and losses that they commit while trading. Its good to see traders in profits, but its a bonus if a trader excel in maximizing his profits.