This is designed to prevent overtrading and conserve the bulk of the
profits for the day and the use of correct stop losses.
Your trading plan should be based upon rules that govern a trader's
decision to enter a trade or take a position in the marketplace. You
should know where your profit target is and stick with it.
Using a trailing stop is a excellent way to lock in profits. Traders
should not chase trades once they have moved up. A sudden move in the
market may seem like the right thing to do, but in the long run, it
will cost you money. By taking this approach, the inexperienced trader
is at a great risk of overtrading and making bad trades over and over
again. As most traders knows there are a variety of systems and
technical tools out there. The novice trader should dedicate the time
to discovering the right ones for their needs and stick to them.
Re-writing and changing your trading strategy from one day to the next
will be of no help at all to your longer term goals and making money
in trading. You need to devise a solid trading plan with profit
targets.
Your trading plan should detail each and every step of the
analytical approach so you can look back at past performance and
ascertain the success rate and make adjustments accordingly. A stock
or forex's goal is to buy low and sell high.
You must understand that proper trading is not easy on the emotional side
so try and keep emotions out of your trading. If you sell into
markets when everything including news, indicators, and opinions are
not good you are selling when price is low and at low levels, which is
the last thing you should do. You should have had a set stop loss
according to your trading plan.
If you wait for news and charts to look "good" before you buy into a
market, price is already high and at retail prices at that point. News
trading can lose you money if that is all you trade. The spikes in the
market at news times are wicked and you will lose most of the time.
Motivation to keep your personal commitments
Getting the knowledge
Achieving a personal best
Trade Planning and organization
Technical analysis
Managing risk with stop losses
Persistence and Perseverance
Equally, you can model excellence in your ability to:
Gamble in your trades never
Violate your rules never
Worry try to keep emotions out
Put on too much size over trade
Leave your trade plan
React impulsively no emotions
Freeze in the face of fear use stop losses |
