For 3-5 minutes while going through this forget what you know about trading.
First thing is : Let's remember our goal, every successful action/plan started with a clear goal that led the way:
In our case it's profit
When starting to trade seeing the numbers go up and down plays with your head and emotion quickly tempting you with the unlimited potential at your fingertips.
Even experienced traders that had some lucky streaks forget that the wanted end result is simple - to be in the money, meaning, making profits consistently.
In order to secure our goal of making profit we need to first start with remembering this is not a 'get rich quick' scheme and there is no magic - A big bunch of money won't fall on your head out of nowhere, at least not consistently.
Now - remember this : It's a lot better to be consistently profitable than to have a series of a few winning streaks.
With this in mind, it's great if you would put up a sticky note on your screen reminding this - As at times it gets hard keeping sight when numbers run wild.
I see many traders look at between 5-10 crypto currencies, 3 commodities and 10 currency pairs - Deciding based on a variety of different things what to trade on every time.
This way of action has no structure at all - Which makes it very hard to reach a certain target: profit.
It is necessary to have focus, structure and a plan with a single minded mission: PROFIT.
But not just any profit - smart profit, a profit that was a result of planned action.
So how do you make a plan?
The easiest way to effectively craft a well thought out plan is to focus on between 2 to max 3 instruments
Learning the range, price action and tendencies of 2-3 instruments can be done within a few weeks going through 1h, 4h and weekly time-frames and determining the short-term and long-term projections of each of the 2-3 instruments.
Once you start seeing the patterns and understanding the price action continue by implementing what you learned on the instruments on a demo account testing a possible strategy that relies on clear idea of what to do with every possible scenario.
You may not get it right with the first strategy, so try others until you find one that shows consistent results - while mastering the 2-3 instruments you have chosen and continuing to following up on a daily basis on relevant news, changes in trends on short-term and long-term projections.
For me - Because I've dedicated years trading and following Gold and WTI , learning how and why it moves - I prefer trading a swing trading strategy, keeping trades open between 3 days to 2 weeks usually, this puts my bigger picture understanding of the instruments into true effect
The difficulties you will find while searching for your strategy are -
*Greed
*Fear
*Lack of patience
*Lack of discipline in plan
Don't let them in - Remember your plan and one and only goal : consistent profit!
Thank you for reading,
Let me know what you think and what you would like to hear more about :D
First thing is : Let's remember our goal, every successful action/plan started with a clear goal that led the way:
In our case it's profit
When starting to trade seeing the numbers go up and down plays with your head and emotion quickly tempting you with the unlimited potential at your fingertips.
Even experienced traders that had some lucky streaks forget that the wanted end result is simple - to be in the money, meaning, making profits consistently.
In order to secure our goal of making profit we need to first start with remembering this is not a 'get rich quick' scheme and there is no magic - A big bunch of money won't fall on your head out of nowhere, at least not consistently.
Now - remember this : It's a lot better to be consistently profitable than to have a series of a few winning streaks.
With this in mind, it's great if you would put up a sticky note on your screen reminding this - As at times it gets hard keeping sight when numbers run wild.
I see many traders look at between 5-10 crypto currencies, 3 commodities and 10 currency pairs - Deciding based on a variety of different things what to trade on every time.
This way of action has no structure at all - Which makes it very hard to reach a certain target: profit.
It is necessary to have focus, structure and a plan with a single minded mission: PROFIT.
But not just any profit - smart profit, a profit that was a result of planned action.
So how do you make a plan?
The easiest way to effectively craft a well thought out plan is to focus on between 2 to max 3 instruments
Learning the range, price action and tendencies of 2-3 instruments can be done within a few weeks going through 1h, 4h and weekly time-frames and determining the short-term and long-term projections of each of the 2-3 instruments.
Once you start seeing the patterns and understanding the price action continue by implementing what you learned on the instruments on a demo account testing a possible strategy that relies on clear idea of what to do with every possible scenario.
You may not get it right with the first strategy, so try others until you find one that shows consistent results - while mastering the 2-3 instruments you have chosen and continuing to following up on a daily basis on relevant news, changes in trends on short-term and long-term projections.
For me - Because I've dedicated years trading and following Gold and WTI , learning how and why it moves - I prefer trading a swing trading strategy, keeping trades open between 3 days to 2 weeks usually, this puts my bigger picture understanding of the instruments into true effect
The difficulties you will find while searching for your strategy are -
*Greed
*Fear
*Lack of patience
*Lack of discipline in plan
Don't let them in - Remember your plan and one and only goal : consistent profit!
Thank you for reading,
Let me know what you think and what you would like to hear more about :D
