Know what kind of trader you are
This is the first and foremost important rule of all.I say this to anyone who is new to the market dont learn about spreads or charts before you make up your mind about WHAT kind of trader you are.There are alot of different kinds of traders but you will have to sit down and decide what kind of trader you are to even start planning what your guidelines and trading methods are.So begin by asking yourself this few simple questions.
Do you trade on the news ??
Do you look at charts ??
Do you go on a gut feeling ??
Do you intend to hold a position for a long or short time ??
Do you follow the trend ??
Do you look out for trend changes ??
What kind of chart time frame are you looking at ??
I don't have the answers for all this only you do.There are people that trade the news base on reports.Others look at charts to plan entry and exit.Some don't mind holding positions open for months while others like to scalp.Once you have established what kind of trader you are then things will start falling into place to how you trade and how aggressive you are willing to go for the profit.
If you want to know my view on this then the answer is simple yet complex at the same time.We cannot take everything for what its worth and call it perfect.You cant just base everything on NEWS for example cause if that was the simple case then every good news will equal a rally and a drop for bad news.We cant just take a chart look at whatever is forming and say its a double top or double bottom and expect it to work out as well.Honestly its a merger of everything.We are playing a dangerous game its called trading.Its the same as gambling as you have no idea where the market will head next.All the little hints from charts to reports to news to even what another country is doing will affect the market in ways that seem to stretch the boundaries of imagination.
So the first step before doing anything else or wandering further into the hole which leads to wonderland you have to be prepared.The only way to win against such an enemy is to understand yourself before going to battle.Trust me my friends it is a battle the Market will do everything in its power to suck your hard earn money dry and that is no joke.Your goal is to do the same thing but if you dont know or understand yourself and how you are going to fight then the battle is already lost.
Try this simple trick
I am an Intraday trader. ( Thats just me you can be a swing or trend trader most important is you KNOW what you are)
I have clear goals on what i want per day and over a long term period.( $50 a day is my daily target and every month its 1k)
I know that i am risking an amount of money which i DONT need. ( If need be and i make the worst trade known to man and lose everything its ok)
I WANT to win against the market and break free from the endless rat race of office politics.(Super long term goal is to quit my job)
Thats my GOAL and motivation its different from people to people so try making your own list and when your in a rut take it out and read it.
Do you trade on the news ??
Do you look at charts ??
Do you go on a gut feeling ??
Do you intend to hold a position for a long or short time ??
Do you follow the trend ??
Do you look out for trend changes ??
What kind of chart time frame are you looking at ??
I don't have the answers for all this only you do.There are people that trade the news base on reports.Others look at charts to plan entry and exit.Some don't mind holding positions open for months while others like to scalp.Once you have established what kind of trader you are then things will start falling into place to how you trade and how aggressive you are willing to go for the profit.
If you want to know my view on this then the answer is simple yet complex at the same time.We cannot take everything for what its worth and call it perfect.You cant just base everything on NEWS for example cause if that was the simple case then every good news will equal a rally and a drop for bad news.We cant just take a chart look at whatever is forming and say its a double top or double bottom and expect it to work out as well.Honestly its a merger of everything.We are playing a dangerous game its called trading.Its the same as gambling as you have no idea where the market will head next.All the little hints from charts to reports to news to even what another country is doing will affect the market in ways that seem to stretch the boundaries of imagination.
So the first step before doing anything else or wandering further into the hole which leads to wonderland you have to be prepared.The only way to win against such an enemy is to understand yourself before going to battle.Trust me my friends it is a battle the Market will do everything in its power to suck your hard earn money dry and that is no joke.Your goal is to do the same thing but if you dont know or understand yourself and how you are going to fight then the battle is already lost.
Try this simple trick
I am an Intraday trader. ( Thats just me you can be a swing or trend trader most important is you KNOW what you are)
I have clear goals on what i want per day and over a long term period.( $50 a day is my daily target and every month its 1k)
I know that i am risking an amount of money which i DONT need. ( If need be and i make the worst trade known to man and lose everything its ok)
I WANT to win against the market and break free from the endless rat race of office politics.(Super long term goal is to quit my job)
Thats my GOAL and motivation its different from people to people so try making your own list and when your in a rut take it out and read it.
