5 PHASES OF TRADE ANALYSIS

Hello everyone!
Trading is hard mental and emotional work.
The market is a dangerous place that will show all your disadvantages.
Without strategy and control, it's not even worth trying to beat the market.
Today I want to talk about the five phases that a good trader must go through when trading on the market.

PHASE 1
The first step for a good deal is to choose the right instrument.
To do this, you must be able to understand stocks, currencies, indices.
You must understand the specifics of each tool, be able to understand the data of reports and news, and use the information correctly.
The big mistake of beginners is trading all instruments indiscriminately and without preparation.
You should understand that, although there are similarities between the markets, they still have differences.
YOU should understand that the bankruptcy of a small company will not affect the market, but Google's problems can.
An increase in the interest rate in a third world country does not have much impact on the world, unlike the actions of the US central bank.
Study the specifics of the market and follow the news, then make a choice what you will trade.

PHASE 2
After you have selected a suitable instrument for trading, you must open a position.
To do this, you must have a strategy prepared in advance, in which the entry conditions will be prescribed.
This topic is a separate article because the issue of opening a deal is very important.
You will be able to know where to open a position and where not to do it only when you try existing entry strategies, analyze the results and do something of your own.
After finding a suitable entry strategy and waiting for the right conditions, open a deal.

PHASE 3
After opening a deal, 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 mistakes.
Of course, if you are engaged 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 how the price reaches important levels, but do not overdo it.

PHASE 4
Then you have to close the position.
The strategy of closing a deal is also important and there are many styles of closing deals.
You have 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.

PHASE 5
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 think they have understood the market.
Losses spoil the mood and you don't want to remember them, so beginners quickly run on.
Not performing an analysis of the completed transaction is the biggest loss.
You lose the most at this stage, because by analyzing the transaction, you will avoid losses in the future and get 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 make no more mistakes.

conclusion
As you can see, it is not enough just 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 like this yet.
Good luck!