How to stick with your trading strategy?
Aug 31, 2018 at 10:10 am #1989
A trading edge or strategy defines how a trader will perform in his or her trades. And you just need to prepare such system at the beginning of your career. No matter how weak it is, you have to prepare one. Because it will stick with your profession until the end of your career. But, it doesn’t mean once you have made a trading strategy or edge you are done with it. It needs to be polished from time to time. And you have to furnish it until you get the finest one. Although there is no such thing as the finest, you have to try to make a profound edge at least. Today we are going to talk about how you can stick with your trading edge and keep on improving it. If you have any suggestions let us know in the comment.
Learning from the basics
If you don’t know the basics, you cannot participate in the trading business. In every profession, you will experience the same. You have to learn the procedures of basic trading at first. Things like the price charts, pips, uptrends, and downtrends, key swing etc. are needed to be understood by you. These will help in trading with a basic knowledge. And before you start, you have to make a small edge with them. Like when the price goes up, buy a trade. And when it goes down, sell one. Follow this edge and improve it using more advanced tricks. For example, learn to use the pickup and resistance points while you are trading. Then use the Fibonacci chart for understanding the future trend of a market. Increase your trading edge’s efficiency gradually.
Know your limits
This is the most ignored part of the Forex trading industry. The professional UK traders in the exchange traded funds community don’t even know why the novice traders are always trading with a big lot. You can’t lead your life without understanding the core factors of risk management. Set reasonable profit factors in the Forex market as it will help you to make more profit. Never think you will be able to win all trades in this market. Always be prepared for the worst cases scenario as it is the only way to save your investment. Never take more than 2% risk any trade since losing more than 2% will force you to overtrade the market. Be smart when it comes to the investment business.
Following your schedule
Most of the cases trading start as a side job or a day job for many traders. So, it is important that a trading schedule is made for regular participation. Otherwise, it will be hard for a trader to cope up with a market. And a trader can lose continuity in their trading. As a result interest of trading will decrease from time to time. So, you must make a trading schedule for yourself. It doesn’t need too much time for an individual to trade on a daily basis. If you can spear an hour from your daily schedule, it is enough for your participation. Sometimes it can be less than. Because you don’t have to trade every single day. If the market is in bad condition, just observe it and try to learn some tricks. That’s it, you are done for a day. But, participate regularly.
Focus on the market
To improve trading a trader needs a defined trading edge as well as his or her focus on his work. Because, if you do not, you will lose hope and interest from this business. And that is not good for a trading career. So, a trader must concentrate on what he or she is doing while trading or even observing the price chart. Otherwise, there is no value in trading as a profession. And when you lose multiple trades at once, you will lose hope from this business.00
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