3 Steps to Improving Your Trading

For new beginners wanting to improve their trading education will play a fundamental role to improve their understanding of the market & this will lead to the trader becoming more successful.

After traders have learned the trading lessons required to start & begin trading and well as the different strategies then traders need to follow & adhere to these 3 steps shown below so that to improve their trading. If you haven't learnt about the tutorials needed to start & begin trading or you're looking for a trading course which offers these tutorials then you as a trader can find these lessons on the learn section of this website. You can also find trading strategies from the learn trading strategies section of this website. After you have completed studying these tutorial guides traders can then follow these steps and guidelines to improve their trading.

Come Up with a Trading Plan

Traders need to plan their trading to do this, traders will be required to create a plan. Traders looking for an example trading plan can find one on this website, the guide of writing trading plan can be found on the learn tutorials of this websiteesite, this is the last guide on this learn tutorials section.

Use a Trading Plan and Stick to the Plan

Investors & Traders should always use the plan they create to trade the online currency market. The strategy that a trader chooses should be well written down in this trading plan & trader should always follow the rules of this plan when deciding when to open and close trades.

The currency pairs that a trader will be trading will also be specified within this trading plan, the currency pairs chosen will be the currency pairs that are best fitted for based on the trader’s strategy.

The plan will also specify which chart time frame that the trader will be trading with, whether the trader will use the minute trading charts or hourly trading charts. The chart time frames used will depend on the trading style of a forex trader. A scalper trader will use the one minute trading charts, a day trader may use the 15 Minutes charts and the swing trader may use hourly trading charts.

The plan also will set the take-profit targets for each trade and also the stop loss for each position. Once a trade position is open then a forex trader will close-out their trade once the tp order level is reached and attained or once the stop loss level is attained. By sticking to the technique of closing trade positions at pre-determined levels will ensure that the traders will be more successful because they will have decided on the points to close the trade positions before opening these trade.

The plan will also include money management principles that the trader will follow. For example a forex trader should follow the money management rule that specifies that they should not risk more than 2% of their account funds on any 1 single trade. The money management rules tutorial can also be found on this site on the learn topics section under the key concepts topics.

If as a trader your chosen trading strategy is to use automated trading strategies and EAs then these automated strategy should be specified in your trading plan. Whatever system you make a decision to use as a forex trader, write it in your trade plan & stick to trading with that trading strategy.

Investors & Traders should also avoid emotions of fear and greed when trading in online trade market. The plan will help traders plan their trades and this way traders won't make trade positions based on their emotions. A trading plan will help one set clear goals when trading & at same time will help the traders to stay organized when trading & thus ensuring the traders become more successful when trading in market.

Trade with The Trend

Traders should always ensure that they open trades in direction of the market price trend. The market trend is the general direction of the market prices & this direction can be upward or downward. Once the trends begin to move in a given direction price will continue to move in that direction for a while and for a bit of time because the trends will have gained & gathered momentum which will keep pushing the prices in direction of the market price trend.

This is why traders should always open trade positions in direction of the market price trend so as to trade & transact in the direction which has momentum and this way traders can increase their chances of being successful when trading the market.

Trader always have a saying in the market - The trend is your friend - which means that traders should always trade in direction of trend & never open a trade against the market trend. This is because the most reliable method/technique of forex, and not just forex even stocks and other trading instruments is to follow the trend and only open trades in direction of the trend.

There are different techniques of determining the direction of a market trend & to do this trader should use trendlines or moving averages or Bollinger band indicator.

Keep and Maintain a Journal To Track Your Trading Results

Investors & Traders should always keep a journal and write down all trade positions that they open/execute in this trading journal, they should write why they opened each trade position, when they closed the trade and also the amount of profit or loss generated from that position.

After a while traders can make a review of the trades that they have made and try to determine why the losing trades made losses and why the winning trades made profits. After that traders can then try to do more of what produces the profitable trades and less of what produces losing trades so as to try and improve their successful and winning trades and reduce their less successful and losing trades. This way a trader can keep learning and improving on their trading strategy.

As a trader if you do not maintain a trading journal you may continue making same mistakes over & over again without even knowing it, but if you keep a journal & keep reviewing this trading journal from now and again that way then you give yourself a chance to spot the mistakes that you make in trading by reviewing your trading journal.

Once a trader gains some experience in the market & start to recognizes the successful patterns from their winning trades they can then use this info to identify the trading setups that will have more probability of producing winning trades and this way they can then continue to improve their trading.

Study More Courses & Courses:

Trade Forex Trading

3 Steps to Improving Your Trading

Come Up with a Trading Plan

Trade with The Trend

Keep and Maintain a Journal To Track Your Trading Results