What are the secrets to big trader?

<p>For retail ‘traders’ using technical analysis, and low information signals with a minimum of information advantage, the most important aspect is luck. Good luck is probably 90% of the reason any day trader is ever making money.</p>

<p>My success in trading has been the ability to understand my downside loss (due to having worked in risk mgmt for the majority of my life) and upside wise, cherry pick my trades. As a result, most big leveraged trades I did had vv little downside risk (and were hedged 15 ways from Sunday in case I would be wrong). I think my success originates from the fact that I never pursued a fixed return or an x-amount per year (arbitrary nonsense if you ask me), but that I chased opportunity. And if I found one, I would squeeze it like toothpaste.</p>

<p id="isPasted">There are no "secrets" in the sense of guaranteed-profit hidden techniques; rather, the success of big traders is built on a foundation of discipline, robust methodologies, psychological strength, and meticulous risk management.</p><p>Here are the key principles and practices that distinguish consistently successful traders:</p><p><strong>1. Exceptional Risk Management</strong></p><p>This is arguably the most critical factor. Big traders prioritize capital preservation over generating massive returns quickly.</p><ul><li>Position Sizing: They rigorously control the size of their trades so that a single loss does not significantly damage their overall capital. A common rule is never to risk more than 1-2% of their total account on any single trade.</li><li>Use of Stop-Loss Orders: They always define their maximum acceptable loss before entering a trade and stick to their stop-loss levels without emotion.</li><li>Risk-Reward Ratio: They only take trades where the potential profit significantly outweighs the potential loss (e.g., aiming to make at least $3 for every $1 risked).</li></ul><p><strong>2. Disciplined and Consistent Methodology</strong></p><p>Successful traders do not rely on "gut feelings." They follow a meticulously planned and back-tested trading system.</p><ul><li>A Defined Edge: They have a clear, statistically sound reason for entering and exiting trades (their "edge"), which could be a specific technical indicator, fundamental analysis, or a combination of factors.</li><li>Adherence to the Plan: They execute their strategy consistently, even when it is difficult, and do not deviate due to emotion, external noise, or a fear of missing out (FOMO).</li><li>Journaling and Review: They meticulously log every trade and periodically review their performance to identify weaknesses, refine their edge, and eliminate repeated errors.</li></ul><p><strong>3. Psychological Strength and Emotional Control</strong></p><p>Trading is a highly psychological endeavor. The "secret" here is managing the emotional responses of fear and greed.</p><ul><li>Detachment from Outcomes: They focus on executing their plan flawlessly rather than obsessing over the outcome of a single trade.</li><li>Acceptance of Losses: They understand that losses are an unavoidable and necessary cost of doing business and do not let a losing streak cloud their judgment or lead to "revenge trading" (making impulsive, high-risk trades to win back money).</li><li>Patience: They wait patiently for high-probability setups that fit their criteria and resist the urge to trade constantly.</li></ul><p><strong>4. Deep Market Understanding</strong></p><p>While technical skills are important, top traders possess a profound, holistic understanding of the markets they trade.</p><ul><li>Understanding Market Structure: They know who the major participants are in their chosen market (e.g., institutional banks in forex, hedge funds in stocks) and how they influence price action.</li><li>Adaptability: They are not rigid. If market conditions change (e.g., moving from a trending to a ranging market), they adapt their strategy or simply step aside until conditions favor their system again.</li><li>Focus: Most big traders specialize in a few markets or strategies, becoming experts in their niche rather than dabbling in everything.</li></ul>