Larry Tentarelli is an independent trader based in North America, has been self-employed since 1998, grew up in a close family of broker-dealers, and also worked as a broker for Merrill Lynch in Boca Raton from 1999-2003 and then quit. Despite this, he continues to study trading and the market.

After many failed attempts with discretionary, fundamental and short-term techniques, he learned from Dr. Elder how to plan before going to the market. Finally, Larry Tentarelli discovered how to automate his operations after reading Michael Covel's book "Trend Followers".

As traders and investors, we need a consistent goal to increase returns, but keep in mind that returns must be risk-adjusted over time.

Here are my 7 best ideas that I've implemented every day, over 22 years of trading the markets, that you can start working on today.

1. Change the way you think about the market

From personal experience, those who have outperformed and consistently achieved positive results have found that the market's message is much more important than they think.

Human nature often makes you think we can predict or interpret good news, but the reality is, for profitable trading or investing, prediction is not necessary.

Once we accept that the market price on the screen at that moment is correct and stop trying to force our will on the market, it becomes easier to react and adjust accordingly.

It is still OK for you to have an overview of the market, as long as you understand that, in case the market goes against your view drastically, you are wrong, not the market. , and we are the ones who need to adjust.

2. Timeframe

It is extremely important to choose a time frame that suits your thinking and information base.

If you're a medium to long-term trader or investor, like me, overnight futures markets really don't matter, or the latest CNBC headlines and about 90% of the day's news, probably. will have no impact on your position.

Industry statistics for decades have shown that longer timeframes yield better results and shorter timeframes yield worse results.

Most day traders go bankrupt and no discretionary day trader has ever been honored on any of the Forbes lists. Instead of trying to beat the market, it is wiser to let the market work for us, and then try to outperform if we can.

Find a time frame that suits your personality and then focus on that.

3. Ignore outside opinions

Industry statistics show that many traders lose money over time by making short-term decisions based on emotions.

Ignoring outside opinions on social media is also a good idea, and many of the biggest wins have come when online consensus has veered in the other direction.

4. Focus on the price - not the indicator

Your account balance and profit and loss ratio will be based on the price, that's all. None of the columns on your P&L table are for volume, RSI or any other indicator, but only for price * volume.

Focus on price, price trend, and moving average (which is a calculation based on actual closing price. If price is making higher highs and lower lows in the time frame choose, it will be trending. Higher highs and lower lows suggest a downtrend If price breaks above or below an important level, that could also send me a signal.

What  don't want to do is stare at an indicator that says the price is wrong and the indicator is right. One can always catch the "golden moment" that an indicator "points", but it is more likely to be a coincidence than a winning strategy in the long run.

5. A little less, a little full

Most traders and investors complicate matters and confuse things by looking at them too much. Significantly improved results when reducing everything:
  • Fewer positions - Focus on the best trading ideas.
  • Smaller Positions - To get the right size and not try to get rich with just one trade. At the same time, this is also to prevent swinging when there is volatility, as it can happen at any time.
  • Fewer charts to observe.
  • The indicators are not cluttered and the noise signal on the chart is also less.
  • Fewer watch lists.
  • Smaller watchlists to track fewer assets.
  • View news more selectively.
  • Do not over-analyze every position.
6. Risk management with pre-planned positions

If you have a process that tells you where to enter and stop loss 12% of the entry point, stick to the plan and let the position do the work.

There will probably be some positions that work, some that don't, but the stop loss is here to help you manage risk and also relieve emotional pressure. Learning how to automate the process and reduce over-analyzing every day will dramatically increase your trading performance as well as your mental state.

7. Research who has more experience and better results

Constantly studying the best traders and investors of our time. Found that by studying all of Jack Schwager's "Market Wizards" books it was possible to gain a deeper understanding of how legends think and manage their money - Paul Tudor Jones, Stanley Druckenmiller, George Soros, Bruce Kovner, and other self-made billionaires.