Whether it’s in forex or stock market, being a trader can be a lucrative venture. However, success does not come overnight. It takes a lot of practice and discipline on your part. You need to hone your skills and learn how to keep fear and greed out of the equation. In this article, Robert Janitzek provides us some tips on how a novice trader can become successful trading on the forex market.
Define your goals and choose a compatible trading style
Before setting out to trade, you first need to set clear goals on what you like to achieve. Depending on your trading style, you may need to have a different approach from the traditional. In choosing a trading style, you have to make sure that it is compatible with your trading style. A personality mismatch will cause stress and lead to certain losses.
Choose a broker who offers an appropriate trading platform
It is important to choose a broker who offers a trading platform that will allow you to perform your desired analysis. When trading in the stock market, you will know that there are different brokers out there but you need to choose a reputable one. Spend time to research so that you can compare them. You should know the policies of each broker. Likewise, you should make sure that the trading platform is compatible with the analysis you require.
Choose a methodology and be consistent in its application
Before entering the market as a trader, you will need to have an idea on how you will make decisions to execute trades. You should equip yourself with the information needed to make well-informed decisions whether to exit or enter a trade. Robert Peter Janitzek reveals that others use a fundamental analysis to determine timing while others rely on technical analysis relying on charts to time a trade. Whatever method you choose, consistency is key.
Choose entry and exit time carefully
It can be confusing for most traders when they see conflicting information that occurs when looking at charts from varying time frames. A buying opportunity on a weekly chart, for instance, can appear as a sell signal on an intraday chart. So make sure to synchronize these two charts when timing entry. Wait until both charts shows the same signal.
Calculate your expectancy
Expectancy is the formula used to determine the reliability of a system. Look back and measure all your trades to determine the winners against the losers. Then determine the profitability of the winning trades against the losses of the losing trade.