Trading is hard mental and emotional work.
The market is a dangerous place, which will show all their disadvantages.
Without strategy and control, it is not even worth trying to beat the market.
Today I want to talk about the five phases that a good operator must go through when operating in the market.
The first step for a good business is to choose the right instrument.
To do this, you need to be able to understand stocks, currencies, indices.
You must understand the details of each tool, be able to understand the data in reports and news, and use the information correctly.
The big mistake of beginners is to trade all instruments indiscriminately and without preparation.
You need to understand that although there are similarities between the markets, they still have differences.
You must understand that the bankruptcy of a small company will not affect the market, but the problems of Google Yes.
An increase in the interest rate in a third world country does not have much impact on the world, unlike the actions of the central bank of the United States.
Study the market details and follow the news, then choose what you will trade.
Once you have selected a suitable instrument to trade, you need to open a position.
To do this, you need to have a strategy prepared in advance, in which the entry conditions will be prescribed.
East is a separate article because the of opening a deal is very important.
You will be able to know where to open a position and where not to only when you test the existing entry strategies, analyze the results and do something on your own.
After finding a suitable entry strategy and waiting for the right conditions, open a deal.
After opening a trade, all you have to do is follow the market and the news.
But don’t overdo it.
Beginners often sit in front of the screen monitor for a long time and monitor every price movement, which eventually leads to fatigue and this leads to errors.
Of course, if you are involved in scalping, for example, you will follow the movement, your trading style also decides how much you will be behind the monitor screen, but do not overdo it.
Open a position, watch the price reach important levels, but don’t overdo it.
So you have to close the position.
The strategy of closing a deal is also important and there are many styles of closing deals.
You need to choose your strategy and close the position according to it with profit or loss.
The main thing is not to deviate from the rule and not to forget about the stop loss.
Beginners, as a rule, after closing a deal, go further for a new position and this is a big mistake.
The resulting profit is maddening, and newcomers believe they have understood the market.
Losses spoil the mood and you do not want to remember them, so beginners quickly run.
Not performing an analysis of the completed transaction is the biggest loss.
You lose more at this stage, because by analyzing the trade, you will avoid losses in the future and make even more profit, without doing the analysis, you will continue to trade poorly.
Therefore, at the end of the day or week, allocate time to analyze all transactions, draw conclusions and not make any more mistakes.
As you can see, it is not enough to open a position and close it, you need to prepare and then analyze everything.
These steps will help you reach a new level as a trader, if you haven’t started trading this way yet.