The first step in formulating a deal is to get a complete picture of yourself.
What kind of trader you are will determine which type of method is right for you. Strategies, systems and methods that fail to match your attributes and style will reduce your chances of success.
Most traders want to immediately jump to formulating and looking for trading systems and strategies, but they don’t know which systems and strategies are compatible with their personalities and the situation they are in. If they don’t want to take the time to reflect on themselves.
Before you want to click the buy or sell button on the trading platform, you have to ask yourself some questions to work out a better trading plan. When you do this, write down your answers. Writing down your answers will help you remember what you are going to do and help you follow your plan.
Are you ready to enter the Q&A section?
In the next course, you will be asked relevant questions, which can help you clarify your trading attributes and the impact of these attributes on your trading plan.
Motivation and goal setting
As a trader, what is your motivation?
Become a sinister rich man? Is it for excitement? Because you want to do something challenging and exciting? Or is it because there is a girl who likes currency transactions, so you want to impress her?
It is important to understand your true purpose or whether you want to trade. Traders who don’t take it seriously and don’t invest will soon be eliminated from the market.
Trading system—preparation before making a trading plan-Yuhui International
For example, demand stimulation and the pursuit of sustained profit cannot coexist. You may enjoy the thrill of setting your position at the “farm level”, but trust us, once your transaction is broken in front of you, you won’t be laughing.
If you are looking for excitement, go to the casino, skydive or drive an F1 car.
More importantly, if you want real excitement, then drive out of the plane in an F1 car and land in the casino. That’s very exciting. And it may be less than the money you lose from trading.
What factors determine your trading goals?
It can be explained from the perspective of money to use a profit target (money or return) over a period of time. For example, you can set your goal at 4,223,834,145.53 USD per month, or get a weekly return of 529%.
This is not necessarily related to money. For example, “My trading goal is to earn enough money to buy a pair of Jordan basketball shoes, so that I can make my girl fall in love with me, fall in love with me, and then we live a happy life together.
Or “My goal is to have enough money for cosmetic surgery so that I can become a lot like Halle Berry, and then everyone wants to hold hands with me.”
Everything has to do with money.
No matter what decision you make, you must ensure that it is clear and measurable. Setting trading goals will help you grow. It cannot be as general as “I want to be rich”. Replacing it with “I want to be super rich” doesn’t count.
“I earn 1% every week.”
“I will earn 50% by the end of the year.”
“I doubled my account in 6 months.”
“I don’t want to make a trading mistake today.”
Make your goals clear and measurable so that you not only know what you want, but you can also monitor your progress to see if you are making progress.
What is venture capital? How much money do you have available for trading? How much loss can you afford?
You need to determine whether you can afford the transaction.
Transactions can only be completed through risky assets.
Risk assets are assets that you can lose.
If you lose this money, you will not lose your home, car, spouse, hands, feet, electricity, etc.
If you trade with the money you use to pay the bill, it will have a great negative impact on your objective trading decisions.
Think about how much pressure you will be under when you are in a trade and you know that if you stop the loss and leave the market, you will no longer be able to put food on the table.
Every time a point change is contrary to what you expected, you will think, “Tomorrow’s lunch is gone.”
You don’t want to end up starving, homeless, and penniless, do you think now?
Unless you want.
In that case, go ahead and invest all your hard-earned money in the foreign exchange market.
Do not be silly!
If you can’t open a guy in the kitchen, how can you possibly make money in the foreign exchange market.
Stick to simulation training until you know where you are in!
After that, we will teach you about risk management and how to manage your assets.
Every day/week/month (regardless of which time period is most appropriate), how long can you spend on the various requirements of the transaction and for managing the education system?
The length of time you have available will determine your trading style. The shorter your trading period, the more time you will spend.
If you are a day trader, since your entry and exit time is a whole day, you need to stare at the screen all the time.
The longer you trade, the shorter the time you spend observing the market. You only need to check your transactions from time to time.
Don’t forget the disturbing factors.
You say that you trade 8 hours a day. Does that mean that within those 8 hours, you were wholeheartedly looking at the charts and analyzing the published economic data, or staring at the charts and analyzing the economic data during those 8 hours, to you my dear Husband is cooking breakfast, playing with your children, watching videos on Youku, following someone on Weibo, following someone on everyone, and saving the planet from bad people.
Because, if you are an ultra-short-term trader pursuing fast-forward and fast-exit, you are likely to miss a lot of entry and exit opportunities, and you will be crazy because you have suffered too many losses or missed profit opportunities, and eventually put yourself on the scalp Peel off one layer.
You need to spend time developing and adjusting your trading plan. Trading according to your own system requires you to stare at the chart and look for possible entry opportunities. Once you enter the transaction, you need to manage it.
When you leave the transaction, you need to review your transaction and find ways to improve it. After that, you need to take the time to write down your feelings and actions in your trading diary.
How long it takes you to complete these things depends on your trading system.
Usually your trading system takes into account how much time you can spend on trading.
These are all based on the premise that you have a trading system.
You need to repeat the above process under each system you want to trade.
No matter how long your “operation time” is, please make sure you can stick to it.