7 Golden Rules To Increase Your Trading Strategy Performance

7 Golden Rules To Increase Your Income and Trading Performance

Increase Your income and Trading Performance

Introduction :

As a trader, you need to make sure that you are improving your skills each and every day in order to keep up with the competition in the industry. Without constant practice and attention to your trading performance, there’s no way that you can climb up the ladder of success in this field. In fact, if you don’t take these four golden rules into consideration, you could be heading straight towards trouble when it comes to your trading career. Keep reading to find out what they are!

• 1_ Trade a plan, not a forecast.

• 2_ You Can't Be a Jack of All Trades.

• 3_ Stay on top of your trading at all times.

• 4_ Don’t trade with a bias.

• 5_ Focus on risk management.

• 6_ Don't panic and stay cool.

• 7_ Pay attention to trends.

Rule 1_ Trade a plan, not a forecast:

 The markets are consistently inconsistent. If you spend too much time with your finger on autopilot trading a static or static-looking forecast, you will end up with really bad data... In other words, if something doesn’t fit with your plan - don’t trade it!

Rule 2_ You Can't Be a Jack of All Trades :

– You'll Have to Choose a Strategy and Become a Master. Find a trading strategy that you're passionate about and become a master of it. For me, I became an expert on Technical Analysis, so I can use those same skills in whatever stock or commodity I choose to trade. There are traders who have been very successful with fundamental analysis as well as other strategies to see what works for you. But if you spread yourself too thin, you won't have enough time to truly learn any one strategy and it'll hold back your overall performance.

Rule 3_ Stay on top of your trading at all times:

 A close eye on every part of your trading business is imperative to ensure profitability. Make sure you are keeping an eye on what you’re trading and on how it is working out for you. Staying up-to-date on changing news, or entering data into your spreadsheets, or just measuring where your account is compared to where it should be, will save time and energy down the road by avoiding any surprises that might lead to major losses.

Rule 4_ Don’t trade with a bias:

 Think of your favorite player in a football match. As soon as they enter a match, you immediately create a positive or negative bias towards that player based on previous performances and knowledge about their skill level and abilities. This is much like any kind of trading strategy – as soon as it goes up, you start wanting to put more money into it, but when it goes down, you panic and exit early.

Rule 5_ Focus on risk management :

As a trader, your focus should be on managing risk. Make sure you set proper risk limits for each trade and ensure they are not violated under any circumstances. It is important to closely follow how much capital you have at stake in each trade, as well as how much total capital you have invested in all of your trades. Make sure that both figures do not exceed certain percentages of your overall trading account size. Some people recommend keeping your total position size under 2% of your entire portfolio.

Rule 6_ Don't panic and stay cool  :

The forex market is open 24 hours a day, 5 days a week. This means that you have an extended trading session every single day of the week. Therefore, it’s essential to keep your cool and avoid entering trades when you're feeling panicked or unsure. Staying calm in these circumstances is difficult, but if you can master it, you'll be able to maintain profitable trades for longer.

Rule 7_ Pay attention to trends :

Trading is all about identifying trends. For example, once you find a company with high-growth potential, focus on their stock price movement over time. Look for signs of both upward and downward movements. Sometimes stocks will move up or down several times in quick succession. These are called pullbacks and breakouts respectively, and they can be great opportunities to sell short or buy long.

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