We continue 6 tips and tricks written in this article. 4 tips and tricks added related to trading.
These 4 tips and tricks are a collection of technical analysis books and most of them conclude the same as below.
Anything depends on our own style to adapt these tips and tricks and remember, in this article, there is an emphasis on the need to have your own style.
Tip # 1: The more trade, the less profit
There is a misunderstanding in trading that is often used as a mantra by traders that is more trade more profit can be obtained.
In fact, to maximize profits in trading is to enter a position after a setup that is believed to have a high probability of profit.
And this can prevent fatigue from overtrading with high risk and can make rational decisions.
And patiently waiting for the setup will teach us so that we are more careful in finding a profitable setup.
Tip # 2: Loss is your friend
The loss experienced is a friend who can help us to find a trading plan and technique that suits our style.
Every weekend, review why loss and also check why profit.
Is it a bad entry? Is the entry due to emotion or setup? Or is it to the actual setup?
In this way, we will eventually filter out small mistakes and avoidable losses.
The loss here means getting the right StopLoss, not the MC because we change a lot of elephants!
Tip # 3 : Set & forget
Emotions play an important role in trading. When the MT4 app on a smartphone opens every 5 seconds, this will cause our adrenaline to be constantly pumped.
Open MT4, our red floating will start to lose our discipline to follow our original trading plan.
Listen to a friend on the other side say he made a 5 digit profit and we started to open MT4 to enter the position to make a profit quickly.
So, there is a trading plan that we are confident and calm entry, set TP / SL, and just forget and this can avoid the symptoms of changing Stoploss.
If loss, review why. If profit, study also why. This is an exercise in self-discipline from unnecessary noise.
Tip # 4: Calculate the amount of risk acceptable
Trading is not a get rich quick scheme or overnight trade can become a millionaire.
Trading is an area where you can generate income consistently.
For those who are new to the world of trading, place a low risk for each entry. Put as low as 1% is okay.
Many consider this trading as in the movie Wolf of Wall Street which takes the risk to place a full-margin for 1 trade and boom, MC.
Take a slow, small approach first to learn to control fear and greed.
Be a wise trader.
