Before becoming a real trader, we will always go through ups and downs of one kind or another.
At first, in the first few weeks of trading, there must be a certain moment when you feel that trading does not seem to be difficult, because during that time, the little trading knowledge you have mastered can easily help you. You have made a profit, which is probably the "koi stage".
Then, you start to take trading seriously, and you want to go further, but you slowly find that making money becomes more and more difficult. Please don't pay attention, this phenomenon just shows that you have mastered more trading-related knowledge than in the first stage. It's just blind confidence from time to time, let the market educate you.
Trading is like this, deny yourself repeatedly, but if you stick to it, you will reach another state. So you want to take your trading to the next level? Many aspiring traders struggle to achieve consistent profits, while others struggle to push themselves to the next level. Below we will briefly introduce some methods that can help you improve, but it must be noted that entering each trading stage is not achieved overnight.
Create a process for your trading plan
Traders need to develop a trading process or routine. Only an effective trading plan can help them focus on execution during the trading day.
When the market opens, there will always be many things happening, and these sudden things are beyond our control. With disciplined execution, you are programming yourself to follow the same steps you have established for success every day.
Your routine should start an hour before the market opens, at which point you can browse through all the bullish and bullish news in the market. Once you have your observation list for the day, create a plan that you can use as a guide.
This is a very important step, because once the market opens and the stock market starts to fluctuate, it is very easy to get caught up in the current situation. If you already have a plan, then it will be easier for you to keep an eye on price action and execute your trading plan.
Clarify your trading plan. Do it like if/then, use them as a way to start a transaction. For example, if spot gold breaks out of the previous market high after a consolidation, then I would consider going long. If spot gold breaks out of the previous market high but closes below that level, then I would be short around the close of that bar. These are just some simple examples, but traders should practice doing this.
Once you're done trading for the day and the market starts to slow down, then it's a good time to document and review your trades and your trading plan before the market opened. Rate yourself on how well your plan is performing and look for ways to improve.
Once you establish a process that works for you, then you can fine-tune it and practice it every day until it becomes second nature to you.
reflect on your own performance
Sometimes it pays to step back and look at yourself from a different perspective. Take the time to do a self-assessment of your trading performance and you will learn a lot.
What you are looking for are your strengths and weaknesses. By learning more about yourself, you'll be better able to see where there is room for improvement. First, start with your strengths. Find out what you are best at and try to play with it. This will give you a solid foundation on which to build your trading strategy.
Second, look at your weaknesses. By identifying your weaknesses, you can learn how to improve them, or remove them from your trading altogether. Such as excessive trading, retaliation trading, the improvement in this area is actually not as difficult as everyone imagines. The difficulty is that you are not willing to face it or try it. Taking the first step will bring you unexpected gains.
Journaling is a very important part of trading, so be sure to take some time each day to reflect on your trades and what to do next.
maintain consistency
Once you've established a daily routine, make sure you stick to it consistently. Don't act on a whim, as this is a common way traders lose money, but instead, stick to your trading plan and only trade when you are confident that the instrument you are trading matches your trading conditions. Remember, it only takes one good deal to reach your daily goals, so make your deals worthwhile and be selective!
Being selective and patient will help you avoid overtrading and taking unfavorable trade setups. This will also help improve your consistency, which is one of the hardest things to do, newbies. Remember, the deal is the best, take a good rest in the rest of the time, and spend time with your family~
Increase positions in a timely manner
Every seasoned trader has their own way of making a living, they know their strengths, what do you do when the balance of victory is tilted in your favor? To increase your position, you are willing to take more risks because you know that your point of view has been verified. Usually at this time, your first order has already started to make a profit, so at this time, you have the right to increase your position.
However, it should be noted that for newcomers, if the position exceeds the normal level, their transactions will often be affected, and it will be negatively affected. Take notes after the transaction to record your thoughts and feelings. See how this differs from trading with your normal position.
Adding to a position can stress you out and cloud your judgment, but if you don't push yourself to get bigger and better, your trade won't reach its full potential. When you start to make a profit, evaluate again, is the market still in line with your trading conditions? If the answer is yes, there is no hesitation in adding positions.
Ultimately, as your trading skills improve, trading with even slightly heavier positions will become less difficult, but don't become complacent. Urge yourself according to your risk parameters and protect yourself.
in conclusion
Trading is one of the most rewarding and challenging careers most people can choose, but success does not come easily. Trading not only tests your patience, but also your will, but once you become a successful trader, it will be difficult to find a freelance job that can match it.
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