In this video, you will learn about the importance of trade planning and trading psychology.
Your trading attitude is extremely important as it will impact on your trading performance. These are the benefits of planning.
- Certainty: strategic responses to the future
- Control:
over-trading and emotions - Avoidance of psychological comfort.
What are the elements of a good plan?
- Clarity at entry and exit
- Written down
- Buy if price makes a new high
- Exit if price breaks trailing
stop-loss or if fundamentals change.
Many traders face the problem with exiting a losing trade. Fear, anxiety, hope, and greed are the factors that causes the difficulty in cutting losses. Hence, it becomes inevitable to take small losses and prevent taking huge losses.
Handling profits is also as important as cutting losses. You should set realistic goals and set the
Choose a trading style according to your trading personality. Hence, choose a suitable trading strategy and timeframe that suits you.