Every day hundreds of traders try their luck in the market expecting to gain high profits quickly, however only a small percentage of them succeed. The majority ends up failing and withdrawing from the market since, like everything else in life, to be successful in trading requires an adequate work plan which must undoubtedly be based on constancy and discipline without which it is impossible for us to have Success as traders.
If we want to develop a trading plan that we find useful we must take into account the following aspects:
First of all, the first thing to do is inform us before even making our first operation in the Forex or any other financial market. A proper preparation involves documenting through articles, books , reports and even consult with experienced traders that we know. The Internet is a good source of information about it, in fact there are sites that provide valuable information. It is also possible to take courses on the subject taught by experts.
Research and learn about the different types of trading and the strategies that exist to operate in the market. Before using these strategies with real money practice with them in demo accounts for at least 4 months while getting used to the way the market works. If you use a new strategy with which you do not have previous experience, it is important to perform backtesting tests, by means of which it is possible to verify the performance that the strategy can offer by evaluating it through historical market data. Likewise, learn to use stop Loss to avoid excessive losses in their operations which will also help you to manage your capital more adequately. Study all the tools that can help you improve your chances of success in the market.
Keep up-to-date with the market, this is often very changeable as everything around us. For this reason it is vital to keep properly informed about everything happening in the market every day in such a way that we can react properly to the different conditions that may arise. Every day we can find new opportunities and discover some new trading strategy that is more profitable than the one we currently use, a new indicator that gives us better market signals or more appropriate analysis tools. We should always leave a space during the day to update our knowledge base on the market.
Establish from the beginning a schedule to operate in the market which must respect religiously, remember that discipline is the basis of success in trading. It is important that we get used to operating at the same time each day. Expert traders recommend dedicating at least 4 hours a day to the market and either in the morning, afternoon or at night we must always operate at the same time as the way the market behaves changes depending on the schedule due to the Sessions of the most important financial markets worldwide. If a trader does not have a set timetable and operates every day at different times, he will not be able to develop a deep knowledge about the market which in the long run can lead to failure. When we choose a certain time to operate we must take into account that at that time there are no distractions that prevent us from focusing on our operations. A recommendation to determine what time is best for us is to operate with an account at different times and compare the results obtained in each of these periods.