DON’T FORMULATE NEW OPINIONS DURING MARKET HOURS— SUCCESSFUL TRADING December 3, 2014 by Ashok Goel·0 Comment Successful trading requires many strong talents, and one of them is planning the trade. You should formulate a trading strategy for the next day and list the markets that you have to watch. When you place your orders to enter the markets, you must have a plan of entry and a plan of exit. If the markets behaved according to your scenario, you would hold the trade. If markets behaved differently, you should sit back and observe its behaviour. Most traders spend all their time figuring out what to do in the markets.They never give much thought as to what they would do if their analysis was wrong, much less what they would do with the trade , if it was profitable. This is the main reason they lose money in the markets. You should never change your original strategy. Instead, carry out a new strategy with a new set of approaches. If you analyzed the market originally to be bearish and designed positions that would take advantage of a bear market, you must continue through with that analysis. If the market conditions become more bullish, you cannot tamper with the original strategy. You must liquidate the strategy as originally planned, then redesign and reimplement a new strategy geared to the new market conditions. If you try to change your strategy during the trading day based on new market action or new information, you probably won’t have the full resource that you would normally have to help you make a more informed decision. The correct approach is to analyze the markets first. Design a strategy or entry point where you wnt to position yourself in the markets. Plan where you will exit and where you will put trailing stop orders if your analysis is incorrect.Plan orders that will allow you to squeeze the market movement for maximum profits; then wait for the market to come to you. Read more a2analysts/
Posted on: Wed, 03 Dec 2014 09:18:47 +0000
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