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New stock and forex traders will often deal with this
risk by over thinking and or over analyzing the markets before they
place a trade. They also don't use stop losses.You may have the best
buy setup you have ever seen on a five minute chart, but if that is
anywhere close to larger time frame resistance supply , that buy
setup is not likely to work. Conversely, you may have the "picture" of
what appears to be a very high probability sell setup on the twenty
minute chart, but if that is anywhere near larger time frame support
demand , that trade is not likely to work.
There is another reason to focus on more than just a small time frame
or two trends. Larger time frame trends begin and end at larger time
frame support demand and resistance supply levels. The importance
of reviewing the larger time frames no matter how short-term a trader
you are. Traders can use social media in stock, forex trading
decisions
If you like to trade the stock, forex, futures markets. Social
media can help you make good trading decisions. Especially if you are
a new trader social media can teach you how to make good trade.
As you start out trying to learn to trade you need all the sound
advise you can get to study. Poor trades can cost you allot of money.
The more due diligence you can do will put the percentages in your
favor for a profitable stock or forex trade.
Research and listen to different investment services many have live
chat rooms or daily videos on trades for that day.
Social media has changed the way traders think. It has proven
that sites like Twitter, Facebook and others can effect the way you
buy or sell a position. On Twitter there are many different stock
trading groups that post up to the minute stock or forex positions
they are looking at. There are many other social media sites that do
the same thing. Once someone tweets that they are buying a certain
stock then all his followers might do the same thing and their
followers so on a so forth.
You need accurate information so make sure to do some fast
research before you buy. Set up an account at Twitter and do searches
for stock and forex traders. Weed out the ones that are just trying to
sell you something. Do some paper trades on the investments they are
posting. There are some very well know stock trading companies that
post to social media sites. Many assign a person just to help traders
make good profitable trades these are the ones you need to look for.
There are some companies that are paid to promote stocks. They
will push the stock for several weeks. I would not buy the stock if
they have been promoting it for weeks. Wait for the first day they
announce a new stock pick and watch your level II and charts to see if
volume is coming in. If you make a buy I would wait a couple days let
them keep pushing it and then sell. These stock picking companies are
paid a great deal of money to push stocks but you need to be careful
because they can crash fast when the selling starts.
Traders should write daily personal journal for stock forex
trading. If you are trading the forex or stock market you should
write a daily journal it will increase your trading profits. Here are
some ideas on how to set up a live trading journal and write it down.
All the successful traders keep a personal journal of their
trading activities. You should write down why you took a certain stock
or forex trade. How you felt about the trade in your mind and what
emotions were involved. Did I trade out of boredom,was I excited about
the trade. Ask yourself how you felt about the buy and exit strategies
and write it in the trading notes of the journal. Is tension driving
you from being relaxed ,write down how you feel.
You should and stay positive weather it was a winning trade or a
losing trade. Write down what emotions you had at the time of the
trade this is important to keep you focused and on track to be
successful at trading. How to react to a trade is important,to keep
your emotions from getting out of control. Ask yourself and write it
down. Did I follow my trading plan? Did I enter the trade from my
chart indicators? Did I enter my stop loss properly? Did I take
profits and not get greedy pigs get slaughtered . All this is
important if you want to make profits from trading the markets.
All this will help you become a disciplined currency or stock
market trader. A trade book will help keep the fear of failure out of
your head. You need to stay relaxed and cut your losses and let the
runners run. An investment trade journal will help with these emotions
and reduce the anxiety you feel during a forex or stock trade.
Once you start trading the stock or forex markets you need to stick
with a trading plan and a set of rules to trade by. You need to stick
with your plan and the rewards will follow in profitable trades. To
make consistence profitable trades you need to be flexible in your
trading plan and adjust it as the need arises. You need to think about
what style of trader you are and write down a set of rules to follow
when you are trading stocks,futures or the forex markets.
The first thing you need to do is write down a plan to be a
profitable investor and stick with your forex or stock trading plan.
You need a good broker that will work with you and offer good advise
with your trading style.
You should always follow the rules set down in your trading plan.
Do not take short cuts or adjust your plan just because the trade is
going against you. If I have decided to keep within a risk reward
ratio I will stick with it. I will not risk more then 2% percent of my
capitol on any trade. You must protect your money and not risk more
then you can afford to lose. This means sticking with my stop loss
percentages and let the losing trade stop out. You need to let the
profits run and adjust your trailing stops accordingly. The big
profits come from letting my winners run and adjusting my trailing
stop. This will lock in profits especially in fast moving forex
markets.
Learn a good trading system and study more to make it better.
Keep records of the trades and compare them to your plan and adjust it
to be more profitable. Find a trading system that suits your
personality and don't change it. Listen to other traders but stick
with your system when trading.
Make your trades when your plan indicates its time to make a
trade. Don't look for excuses not to make a trade if your indicators
are telling you to pull the trigger then you should take the trade.
Trust your charts and indicators that's why you have a plan on trades
in the first place.
You should take time to relax and get away from trading, this will
help keep your mind fresh and ready to handle the stresses that come
form trying to trade the different markets. Emotions and stress can
takes away profits and ruin you as a trader.
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