The best traders always hone their skills through practice and discipline. They do their own analysis to see what can improve their trading and learn how to manage fear and greed so as not to affect trading. We will discuss eight tricks of being a successful trader, so that it can be used by a novice trader to perfect his skills. For those of you who are experts, you may just find some tips that will help you trade smarter and more profitable as well.
1. Set your goal and choose a suitable trading style
In the beginning, you must set your goal to jump into this forex trading business. To then think how you will get there (your goal). Determine the results you want each month and also in annual (annual).
Each trading style requires a different approach and each style has a different risk profile. For example, if you can not sleep just because it has an open position in the market then you may have to consider day trading. Make sure your personality matches your trading style. Personality mismatches will cause certain stresses and losses.
2. Choose a broker that offers the right trading platform
It is important to choose a broker that offers a trading platform that allows you to analyze as you need. Choosing a reputable broker is very important and try to make comparison between brokers.
3. Choose a strategy and be consistent in its implementation
Before making an entry in the market, you need to have some trading ideas (setup) so you can make the decision to execute your trading. You need to know what information you need to make the right decision about whether the entry or exit of the market.
Some people choose to do fundamental analysis of economic data of certain countries and globally. Others prefer to use technical analysis (using charts and indicators). But keep in mind that fundamentals drive the trend in the long run, while chart patterns offer short term trading opportunities. Whatever strategy or methodology you choose, remember to be consistent and adaptive. Your system must follow changes in market dynamics.
4. Select timeframe for entry and exit
Many traders are still confused about processing the emerging and conflicting information when viewing graphs with different timeframes. If you take the direction of the trend then you can use the weekly chart and use the daily chart (or 1 hour or 4 hours) as an entry.
5. Focus on your trading position and make small losses
After you have deposited funds into your trading account, it must be remembered that your money is at risk. Therefore, you should not use money for life purposes or pay bills and more. Consider your trading money as if it were vacation money. After the holiday ends, your money runs out.
This will psychologically prepare you to receive a small loss, which is key in managing your risk. Focus on your trading position and accept small losses rather than continuing to calculate your equity, you will be much more successful.
6. Stay in positive momentum trading
You will be in positive trading momentum when your trading goes well according to plan. You are on the right track. The first success should continue to be the next success. Although sometimes your trading is a small loss.
7. Conduct weekly analysis
At the weekend, when the market is closed, study the weekly chart to find patterns or news that could affect your trading. This is the type of action you should look for to help you formulate the next week’s trading. In objectivity, you can make your best plan. Wait for your setup and learn to be patient.
8. Create a print journal
Creating a print journal is a great learning tool. Write down all the reasons for trading positions, including the basics that affect your decisions. Mark your entry and exit levels on the graph and make relevant comments. Save this journal so you can refer it over and over again. Pay attention to emotional reasons for taking action. Notice all these emotional feelings (panic, greed, doubt, restlessness) in your journal.
It aims to be able to think objectively in your trading and develop a mental control and discipline to run according to your system and not your habits.
Hopefully eight tricks to become a successful trader can help you.