Habits are something that is very difficult to change, so why not cultivate some good habits. For a Trader one such habit should be of winning trades. But certainly to achieve that some techniques or golden rules must be practiced wholeheartedly. Systematic Planning and following that is one of the basic rules a trader must follow. A combination of all such techniques when applied together forms the mantra that leads you to the path of success.
The paramount techniques that every plan must have:
Examine your skills
Trade only when you are ready to trade. Know your skills and plan accordingly, because when you follow the tricks what other traders do, sometimes it might not work. So realizing your skills and planning according to it would earn you profit.
Be prepared consciously
For a Trader, the mental strength is an important factor, be it his/her daily life or in trading. A trader should not get affected by any mental or physical trauma that will interrupt the way to his/her success. A trader must set a goal and repeat it like an incantation to stay away from any distractions. To be in a place where distractions are bound, a trader must learn to dodge.
Set the Risk levels
The reason a trader must have his/her risk level in a safer zone is because there is a chance that your portfolio will be on risk. The range can be set anywhere around 1% to 5%.
Keep your intentions high
There is a saying "What you think, you become". So think Big and set your goals higher while keeping your head on your neck and setting real & achievable targets and also focusing on the risk to reward ratios. When you realise the profit is much greater than the risk, it is worth taking the risk. Carry on with the same approach with some high goal and believe that you can achieve it with your skill in trading.
Practise in private.
Practise makes man perfect but definitely, there is a difference between bravery and stupidity. You can’t afford to invest your hard earned money for a gamble in trading without a deep study of the things going around. Have an eye on what is happening around the world before stepping into the market. Get to know whether the overseas market is moving up or down so it will be useful for you to plan accordingly.
No matter which trading system and program you work on, the only thing you need to make sure is that you tag or mark the major and minor support and resistance levels. Setting notifications or alarms for your entry and exit signals would be a great idea and to safeguard this you need to make necessary arrangements to easily identify these signals when received, using a visual or audible method.
A plan to exit
Traders passionately concentrate on how to enter a market, but they don’t concentrate on when and where to exit, which is equally important as the entry level. Better make a proper plan for the exit before entering a trade. Traders don’t sell off their positions if the market is going against them as they don’t prefer to be in the stage of loss. A trader must be very confident and he /she should get over the loss and move forward. More comparingly, traders tend to lose more than winning, in the field of trading. So by managing the money, traders do make profits at the end.
Maintaining the data for the trades your won & loss is another good practice a trader must follow. Note down the entry & exit points you choose, open & close positions of the market at that time, the targets that you had set for the support & resistance levels, and even the Overseas market updates. Equally important is the data & conditions that landed you in a loss will enable you to understand the factors that went against you and those which can be avoided and taken care in the future. Keeping a track of all your trading strategies will make you a successful trader.
Taking into consideration all of the above points if followed sincerely will lead your way towards a successful trading career. Nobody can guarantee that every trade will be profitable, it is your efforts and skills in studying the market along with your presence of mind that will lead your way. No matter what happens you should not be driven by your emotions while trading. Trading on paper and real money trading are two different things but yes surely practising more will give you some extra confidence to take a brave step as you have already tested it on paper.