When you are not trading well, is it common that you would think that your knowledge is not enough and you need to seek out for more? Are you searching for more methods and techniques? Or even systems or strategies?
I am not saying you should stop learning. Instead of learning "new thing", they should be an add-on to your base. Thus, building of your foundations is far more important than anything else. So, what should be your checklist?
1. Hard Skills
- Trading concepts - Understanding of market conditions
- Technical Analysis - SR, Chart Patterns (West), Candlesticks Patterns (East)
- Concepts of Waves - ABCD, Harmonic, Elliot Wave, etc
- Understanding of Multiple Time Frames (MTF)
- Tools - Fibonacci (R, Ext, Exp), Pivot Points, Trend Lines, Channels, etc
- Trade management - Know your options
- Recognizing your thought process and decision making process - how you want to trade, why such entries, why such exits, etc
- Position Sizing
- How to increase your R multiples
- Performance tracking - Trade log
- How to recognize and decide what are the losers and winners trade, so that we can cut the former and ride the latter
If I were to put a percentage to the efforts you should put into the hard and soft skills, I would say it is 20% and 80%. For a beginner you would probably spend most of your time working on the hard skills. For those that have gone past this stage, most of the effort should channel into the soft skills portion while continue to upgrade your hard skills level.
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