All the beginner traders make the mistake of analyzing the market in the opposite direction to them i.e. because they end up getting involved and studying many types of patterns together.
In the beginning , the right kind of direction to think about the trade setups is not developed due to which they always lend up thinking in the way of losing the trades at the end.
I would like to correct all the wrong beliefs of the traders regarding trading , that they need to trade on higher time frames with the observations of the charts at different time frames.
Be happy with little less because you don’t have to analyze the market whole day.
Try to be away from the computer screen.
If you are sitting and observing the market , if you don’t find anything worth to enter the market , then it’s better to go away from the market and not to enter the trade.
But what many of the traders make mistake is that they are very eager to trade and can’t be happy without trading even a one day as they lack patience. Due to which they read news regarding the trading and enters the trade with no reason which just cause them to lose their money.
Get involve in some kind of hobby, spending time with friends, or doing a little bit of household activity in order to keep you away from the computer screen. Do not ever enter the low probabilities trades.
Observe the daily time frame charts for trading.
You need to carefully observe the trade in daily time frame charts and if you don’t find the trades worth to trade in daily time frame then it clearly indicates that you should not trade. Spend some time every day to analyze the market till you became a master in that price action strategy.
Once you become a master in it, it will take only yours 20-30 minutes to analyze the proper setups and if you don’t find within that time it means there are no proper trade setups to trade.
Importance of maintaining trading book and plans.
Maintain records of the trades like business
It’s really difficult to take trading like a business. Many of the traders enter into the market with a mindset of just making a large amount of money and take trading as game or a trip to casino.
The best way to avoid such difficulties is that you can maintain your own trading journal or a one kind of book in which you need to list down all your outlines regarding trading and your rules and regulations for entering and exiting the trades.
Maintaining of book will let you allow taking trading as a business and not a game. Once you start following your trading outlines you will become a disciplined trader in the market.
This activity will help you to enjoy the trading and will give an easy and effective way of trading without any stress. It will also show good results in your trading experience by increasing your profits in your accounts i.e. you will get consistent profits.
Have a good trading plan.
Maintaining a trading book or journal should be a part of your trading plan. Having a good trading plan means you need to be clear about what you are searching in market deciding your risk to reward ratio having your stop loss and also must have a strategy pre defining your exit from the market.
Having a trading plan will help you to trade effectively in the market once you enter the market and that also without any confusion.
Give importance to your focus in trading
Don’t get involve in too many trades at a time.
One thing you need to except is that nobody can be good at everything at a same time similarly , when it comes to trading , don’t try to get involve in multiple trades at a time at different time frames.
Just get involved in a good 1-2 trades which gives you a consistent profits as getting involve in more trades of different time frames is going to give you stress confusions and at last will cause you to lose money from your accounts.
Become master in one trade setup at a time.
Try to become a master in one setup first in your demo trading accout and if you start getting consistent profit then go for actual trading and even in that you start getting consistent profit then go to your demo trading for starting trading for another trade setup.
This will prevent your risk in the market and will also help to become a good life time successful trader. The other things which you need to focus is being practical and thinking in a realistic way with regards to your trading and also need to focus on proper money managing skills to get consistent success.
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