8 Principles to Building A Multi-Million Dollar Portfolio

I built a multi-million dollar portfolio from trading.

The crazy part?

I was never given formal education or money from my parents to do this.

This was something I had to build myself.

Here are 8 principles to building a million dollar portfolio, even if you lack financial education.

Principle #1: Never Trade With Emotions

When you trade, you need a clear mind.

FOMO will destroy any account.

If you feel like you need to jump into a trade, the move is likely over or close to.

Signs of FOMO or emotional trading:
- Jealousy of other traders
- Having the urge to trade non-stop
- Your trading impacts your self-esteem
- Jumping in and out of trades

Principle #2: Do Not Trade Without a Setup

Trading without a plan is as reliable as going to Vegas.

Start from the higher timeframes and work your way down.

Focus on:
- Trends
- Institutional candles
- Support & resistance areas
- Liquidity

All of these will help you to recognize high-quality trading setups.

Principle #3: Make Peace With Your Losses

Losses are part of trading and happen very often.

It’s okay! As long as you stick to your rules.

Losses do not determine how good of a trader you are. Your discipline does.
The less they bother you, the more control you will have in your trading.

Principle #4: The Less You Trade the Better

Trading fatigue is real.

It is emotionally exhausting to stare at charts all day.
Especially when you keep losing.

When it comes to trading, “less is more” is a saying you should live by.

Principle #5: P&L Should Be Your Last Concern

Focus on the best setup. Not how much you can make.

If you focus on taking the best setups now, the profits will come.

This also teaches you to be a disciplined trader.

Principle #6: Mistakes Happen — Don’t Stay In the Trade

We have all accidentally hit sell when we meant to hit buy.

It’s okay.

Do not try to recoup your losses.

Just get out and wait for another trade.

Staying in to make your money back will only cost you more.

Principle #7: Protect Your Capital at All Cost

Stop focusing on how much you can make.

Start focusing on how to protect your capital.

This means:
- Strict rules
- Less trading
- High-quality setups

If you treat your trading like a business, it will reward you as such.

Principle #8: Trade What Your Emotions Can Handle

It is easy to know when your emotions can no longer handle a position size.

What happens:
- “Hopium” kicks in
- You start to trade recklessly
- You break your rules
- You let the trade effect your self-worth

If you notice these things happening, you need to size down.

Remember that the markets might be messy right now, but if you follow these principles, you will be able to master your trading and make the most of these markets.