Trading that is 'power' is not necessarily the one that always brings profit. On the other hand, the losses experienced in the trading planning strategy made can determine whether your trading is successful or otherwise.
The list below shows 6 important rules to make your trading successful.
1. Always follow your Trading Plan
Always adhere to the trading plan you have drawn up. A trading plan is a set of rules that focus on when traders will enter, exit and how money management strategies are made for each trading position.
Use the backtesting strategy to help you get trading ideas by looking at historical price data. Profits obtained from trading made without following the trading plan are considered 'bad' trading.
2. Consider trading like a business
If you want to go to a more professional level, don't consider trading as just a hobby, you need to consider it as a business that requires commitment that involves expenses, losses, taxes, uncertainty, stress and risk.
As a trader, you are actually considered a small trader who needs to plan a strategy to maximize your business potential.
3. Protect your trading capital
Protecting your trading capital by not taking unnecessary risks is critical. But that doesn't mean you can't experience any losses on trading capital.
Even in the learning process, every trader will definitely go through a phase of losing capital, but you need to protect it as best as possible and as much as possible.
4. Only risk the amount you can afford
Before placing a sum of money, make sure that all the money in your trading account is money that can be spent on trading only. Never use money for important purposes such as paying debts or your child's school fees.
Otherwise, you will only increase the pressure and the tendency for you to make decisions based solely on emotions without thinking rationally.
5. Always use Stop Loss
Stop Loss is the amount of risk that you are willing or expect to experience for each trading position in a trading. Trading that ends with a stop loss is still considered a good trade even if it suffers a loss.
Stop loss will limit the risk that will be experienced as well as protect your capital from losing simply when the market movement is not in favor of your trading strategy.
6. Knowing the right time for you to stop trading
There are two signs for you to stop trading, namely when the trading plan becomes ineffective and the trader's attitude is already ineffective.
When the trading plan becomes ineffective, it will result in greater losses and you need to immediately redraft a new trading plan.
Traders become ineffective when they no longer follow the plan made, if faced with this you may need to retreat first and come back in the market at a more suitable time.
