Making a sustainable profit in trading is not easy. But if we start to work, we will see that trading is much more difficult than imagined. Because in fact, it's like you're running a business. In order for the business to be profitable, you must first be a good owner.

If a person enters trading and only knows how to trade, it means that you will also pay for the market. To make a profit in trading, there must be accompanying requirements. And here are all the requirements that a trader needs to get sustainable profits.

The 3 core factors for a trader to put their name in the top 5% of successful traders are: Must have a profitable trading system, know how to manage capital and be psychologically stable. Each element has small requirements that you need to do.

About the trading system

The trading system is the first requirement to make money in trading. In general, a trader cannot make a profit if he trades arbitrarily. You must have a strategy, you must have principles. Once you find a proven and profitable Trading System, what you need to do is:

Backtest: Backtest to see how the system worked in the past, then backtest with a demo account and then a real account to see the performance of the system.

Building a trading advantage: This is important, you must find a trading edge in this system. That means you have to know when your advantage will appear and you should not hesitate to enter the trade. This requires you to understand and understand the trading principles of the system.

Practice: Practice identifying trade setups, analyzing charts based on the system and principles so that you better understand how the system works in the market.

Make a trading plan: Once you understand your system, the next thing you need to do is create a trading plan for yourself.

Do them: when there is a trading system you will need to do the above. And when you have a clear direction in mind what to do, you will soon have a suitable trading system and make a profit for yourself.

About risk management

Traders need to be able to do the following:

Understand the principles of risk management: Trading is a high-risk profession, so traders are required to manage capital before entering trades. Therefore, it is extremely important to know the principles of risk management.

Risk management planning: Understanding the principles is the first step in trading capital management. The next step, traders need to have a specific risk management plan based on capital, risk limit, method characteristics, trading style to have a suitable management.

Follow the rules: Most traders lose consistently because they don't follow the principles of risk management. Once you have your principles and plans in place, take them seriously and discipline them to follow them.

About trading psychology

Psychology is one of the three important factors because most traders' losses are more or less related to psychology. And if you want to have a stable mind, focus on doing the following things:

Build confidence: This confidence will come from knowing the system well, understanding your own advantages, always managing capital, accepting failure and being willing to correct mistakes. When traders focus only on the advantage, confidence is increased. Over time you will have experience in this and become your style.

Controlling emotions: This is not an easy task. Because traders are barely aware of the existence of emotions. Only when you notice their existence and their bad influence on trading can you really take control. In this regard, traders need training to recognize and regulate emotions. Just by doing this, you will have a big turning point in controlling your trading psychology.

Long-term thinking: Because most traders have short-term thinking such as looking for immediate profits, psychologically because of sporadic losses and not focusing on doing important things,... This type of thinking makes it difficult for traders to make profits. You should have a longer-term perspective, trading is a process and failure is normal. Learn from your own failures. Focus on building your own knowledge, skills, and experience. The market is probabilistic and if you always focus on your strengths then you will be profitable in the long run even though you will lose in the process but don't be psychologically motivated by that. Have enough confidence in yourself.