Index Trading How To

Probably the most valuable thing you can do is understand yourself as a trader. While there’s tons you can do in the way of self mastery, meditation, mindset and human performance, collecting your real trading data will be one of your most valuable assets long term. This is especially true for when there are losses made, so that you can remind yourself of the normal due process of trading and the long term nature of it. Having consistent data will help you continue through tough periods (if the data is profitable), find gaps and benefits in your trading. 

Practice the art of trading, watch the markets and how they react, observe interactions across other markets and the effect on your trading market. Assessing your data as your go to determine where your strongest and weakest trades are, along with any identifiable data that might lead to improved performance. Think data like time of day, day of week, holding time of trades and more. 

Risk that is too high will kill any system, no matter how good it is. Using a ‘fund manager account’ that is traded at true consistent risk that you can sustain for long periods of time for data purposes (something like 0.5% or 1% per trade). Over the long term, see what the maximum drawdown % is so that you can determine how much actual risk you can take (at an absolute maximum) and remember to factor in the margin requirements of holding positions. That way, you will know if you have over leveraged.