… how?
How can you trade the financial markets with maximum wins and minimum losses and risk?
The best way to trade is everyone’s dream, since then, it is the easiest way to make money!
However there are a few factors to make you a good trader.
Obviously the first thing is to know the market and understand technical analysis and know how to use them efficiently! To follow this up…
1- Firstly, you need a rock solid analysis that gives you prices. All the indicators that you see in the market are all squiggles or some kind of colorful lighting and lining. However, these are hard to interpret and will get you in to trades later rather than sooner. Indicators are also very misleading!
The really best indicator you can have is an indicator that shows you a price! At what price to buy or sell and at what price to get out with profits. If you do not have this information then you have no information! Drawing trend lines is not the only way to do things and it will not be enough either.
You need to be able to measure price, time and motion. All of these three components make up our reality and accordingly you need to measure all of them.
This is the reason I developed my own indicator called the PST. No matter what time frame you trade it will give you the price levels relevant to enter the trade. This is what a trader needs! A price where the time frame and the movement of price match!
2- Secondly, you are going to need to learn to keep your cool! This will only happen if you understand what you are doing and have a plan! If you do not have a trading plan then you will fail! Understanding how to put your plan together is the most important thing. Obviously if you apply it and trade the plan!
3- Thirdly, and most IMPORTANTLY, you need a good environment that will continue to support and guide you. Just like in our regular work we have ongoing professional education, or an association of professionals. We need something similar to bounce ideas back and forth, to develop, but most importantly to stay on top of our game! Our psychology changes day to day and the environment can become a stabilizing factor. You can share trade ideas and get the opinions of others! A good environment should be focused and it should keep you focused too! Environment can help you maintain discipline, balance and consistency.
The environment should also be informative! It should give you heads up when things are happening. New events, new things to look out for what to trade etc. Also participation in the environment is important for growth. You can not sit and watch and expect things to be great! You need to be active and in there on the job!
4- Fourthly, trading should be fun and should not give you sleepless nights and hours in front of the screen! That defeats the whole purpose of trading for a living. You should want to trade in order to live, not live in order to trade! This is why a good strategy and environment are crucial for a balanced life and happiness!
If you get the above right you can then become the product of a good environment making you a good living while trading!
The key to success in everything is the environment! GlobalTrader.Club
