4 BASIC IMPORTANT THINGS TO CONSIDER BEFORE TRADING.
1) *A TRADING SYSTEM/STRATEGY* = This where build on your entries and exits(when to enter a trade and when to exit them) and back testing them over a period of time to make sure it gives you success rate of 65% and about
2) *TRADING PLAN:* = This is one important aspect some traders overlook _(especially new traders and some veterans too)_. This is where you plan your trades according to your capital on an excel over a period of time of what you want to achieve in order not to stress your brains too much from missed opportunities or over trading. This will always keep you in a calm state no matter what happens on the market to you (whether you had a good day or bad one). So make good use of your excel.
3) *RISK MANAGEMENT*= This will help you plan on the maximum and minimum risk you are willing to take according to your capital and your risk to reward ratio. With this you are able to know when to humbly bow out of the market in case you get an analysis wrong _(always put it at the back of your mind that you are a human being and you can get it wrong sometimes or go contrary to your trading strateg)_
4) PSYCHOLOGICAL PREPAREDNESS* = Another important aspect of trading some of us ignore which affects us unconsciously in our performance on the market. Always make sure that, you are not bordered or too excited about anything before you sit behind a computer to trade. Sometimes you may choose to stay out of the market for a while to deal with it before you get back. Otherwise it will influence your decision making on the market and things can go terribly wrong because of that. _(Always know that staying out of the market too at certain times is also part of the strategy)_
The sorry aspect is that, no one can teach you this unless you make a conscious effect in learn that.
NB: THIS IS BASED ON THE PERSONAL EXPERIENCES IVE HAD TO ENCOUNTER OVER THE YEARS OF TRADING.
From: owusek(Fx-way).
Edited 21 Jul 2021, 19:31
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