Three Guidelines to Improving Your Trading

For new beginner traders wanting to improve their trading education will play a fundamental role to improve their understanding of the trading market and this will lead to the trader becoming more successful.

After traders have learned the trading lessons required to begin trading & well as the various strategies then traders need to adhere to these 3 steps illustrated and shown below so as to improve their trading. If you have not learnt about the topics needed to start trading or you're looking for a trading tutorial which offers these lessons then you as a trader can find these trading lessons on the learn trading section of this website. You also can find trading strategies from the learn trading strategies section of this web site. After you've completed studying these guides traders can then follow these steps and guidelines to improve their trading.

Come Up with a Plan

Traders need to plan their trading to do this, traders will be required to develop a 222 22 trading plan. Traders looking for an example plan can find one on this website, the course of writing trading plan can be found on the learn tutorials of this websiteesite, this is the last tutorial on this learn tutorials section.

Use a Plan and Stick to the Indices Plan

Traders should always use the plan they create to trade the online stock market. The strategy that a trader chooses should be well written in this trading plan and trader should always follow & adhere to the rules of this plan when making a decision when to open and close trades.

The instruments that a trader will be trading will also be specified within this trading plan, the trading instruments selected will be the charts that are best fitted for based on the trader's strategy.

The trading plan will also specify which chart time frame that the trader will be trading with, whether the trader will use the minute trading charts or hourly charts. The time-frames used will depend on the stock index trader trading style. A scalper trader will use the one minute trading charts, a day trader may & might use the 15 Minutes charts and the swing trader may & might use hourly charts.

The trading plan will also set the takeprofit targets for each trade and also the stop loss order for each trade. Once a trade is open/execute then a indices trader will close out their trade once the take profit order level is reached or once the stop loss level is reached. By sticking to this method/technique of closing trades at pre decided levels will ensure that the traders will be more successful because they will have decided the points to close trade positions before opening the trade.

The plan will also include indices money management rules that the trader will follow. For example a stock index trader should follow the trading money management rule that specifies that they should not risk more than 2% of their account equity on any one single trade. The trading money management rules tutorial can also be found on this site on the learn tutorial section under the key concepts courses.

If as a trader your chosen strategy is to use automated strategies and EAs then these automated trade strategy should be specified in your trading plan. Whatever strategy you as a trader make a decision to trade with as a trader, write it down in your plan and stick to trading with that strategy.

Traders and Investors should also avoid emotions of fear and greed when trading in online trading market. The trading plan will help traders plan their trades and this way traders won't make trade positions based on their emotions. A stock indices plan will help a trader set clear goals when trading & at same time will help the traders to stay organized when trading & thus ensuring traders become more successful when trading in the market.

Trade with The Trend

Traders should always make sure that they open trades in direction of the trend. The market trend is the general direction of the market price trading prices and this direction can be upwards or downwards. Once the trading market trends start & begin to move in a specific direction price will continue to move in that direction for a while because the trends will have gained momentum which will keep pushing the prices in direction of the market price trend.

This is why traders should always open trade transactions in direction of the market price trend so as to trade and transact in the direction that has momentum & this way traders can increase their chances of being successful when trading the market.

Trader always have a saying in the trading market - The trend is your friend - which means that traders should always trade in direction of the market trend and never open a trade against the trading market trend. This is because the most reliable technique of trading indices, and not just indices even stocks and other trading instruments is to follow the trend & only open trades in direction of the market trend.

The different techniques of determining the direction of a market trend & to do this trader should use trendlines or moving averages or Bollinger bands indicator.

Keep and Maintain a Trade Journal To Keep Track of Your Trading Results

Traders and Investors should always keep a trading journal and write down all trade transactions that they open/execute in this trade journal, they should write-down why they opened each trade, when they closed the trade & also the amount of profit or loss generated from that position.

After a while traders can then review the trades they have made try and look at why the losing trades made a loss & why the winning trades were successful and after that they can then try & do more of what makes them successful and less of what is making them to open losing trades & that way keep on improving on their strategy.

As a trader if you don't maintain a trading journal you might continue making the same trading mistakes over & over again without knowing, but if you keep a journal & keep reviewing this journal from time to time that way then you give yourself the chance to identify the mistakes you make in trading by reviewing your journal.

Once a trader gains some experience in the trading market & start to recognizes the successful trading patterns from their winning stock trades they can then use this info to identify the trading setups that will have more probability of producing winning trades & this way they can then continue to improve their trading.

Study More Topics:

Trade Stock Indices

Three Guidelines to Improving Your Trading

Come Up with a Plan

Trade with The Trend

Keep and Maintain a Trade Journal To Keep Track of Your Trading Results