what is a successful trading plan
A successful trading plan is what traders create before beginning to trade. The plan outlines how they will approach their trade and the rules they will follow when trading. Different traders will have established their own strategy based on the time frames in which they plan to trade and the applicable trading method they intend to use. Because not all trading plans function the same way on different strategies and currency pairs, each trader will use the indicators he believes are most important and incorporate them into his trading strategy.
setting your trading goals
Setting your trading goals must be your first step . It’s no good just saying you want to will or make money; you must set realistic trading targets and then work out how you are going to achieve them . I.e., I want to make $200 in a month . The goals you set must be realistic and achievable for you.
a successful trading plan ? what markets to trade in
Deciding what market you are going to trade in is very important, as some assets can carry a very high risk but also a very high reward. Brokers offer a huge variety of instruments, and it is prudent to investigate all the assets and narrow down the range that will be suitable for your proposed trading plan.
keeping a trading jurnall
From your very first trade, you will start to learn and gain experience. The best way to learn is by keeping a trading journal. In this, start to list the reason you took a particular trade and, if it failed, why you think you failed . By keeping a detailed record, you can go back and analyze how you traded and improve by not making the same mistakes again. Review this log after twenty trades and adjust your trading plan accordingly.
importance of market hours
A trading plan will not work all the time, and one key factor that must be considered when formulating a trading plan is when to use it for the best effect . It is a well-known fact that only about 20 percent of the available trading time produces the best results . Building your trading plan around the times you intend to trade will greatly enhance your chances of success. The best trading times are when the major markets are open, or even better, when two of the major markets are open at the same time . So consider these times when making your plan.
As with every business venture, there is always an element of risk involved . A good money management strategy is essential for successful trading. Remember, no trader ever wins every trade . If you do not follow the basic rules about how much of your money you invest in a single trade . You might as well toss a coin . For if you lose, you are out of the game . That’s why professional traders advise trading with a maximum of two percent of your available capital. This method allows you to absorb losses without wiping out your trading account and is a sound, widely accepted practice.
emotionall aspects of trading
Trading may be extremely stressful, particularly in the beginning. It’s common knowledge that more than 70% of those who attempt trading actually fail. However, your chances of success will be higher if you have the correct mindset. There are too many facets of a successful trader’s mentality to discuss them all on this page.
Best broker in sa
finding the best broker in sa depending on the type of trading you want to do can influence the type of broker you are looking for. For example, a trader employing a scalping strategy needs tight spreads to be successful, therefore a broker offering tight spreads will be his choice . fowever a broker trading on a longer time frame has a wider choice as the spreads ar not so important
recap of key points
Baking your first trading plan is the first and most important part of successful trading. And trying it on a demo account will let you gain valuable experience and also enable you to make changes until it is working successfully. Remember, if you can’t trade successfully on a demo account, you have very little chance of making a live account make money . So don’t be a loser; learn to earn by reading all the useful articles here on trybuying.com now.
try a demo account ; practice for free
Once you have a plan, you need to test it out on a demo account to see how effective it is in real trading . All traders start by testing their plane on a demo account. They hone their strategies until they have a sound trading plan that produces the desired results before they risk real capital. If you can’t make a success on a demo account, there is little chance of making money on a real account. All reputable brokers offer free demo accounts.