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Tips for successful trading
The first thing a trader must realize is that there is no system that will provide him a constant profit. Most tools of technical analysis (oscillators, moving averages, the chart patterns, etc.) works on the same principle: when X happens it is usually followed by Y. In most cases the implication is true, but in many cases not. So there is no rule or trading system that will always generate signals which make profit. Traders need to choose a system and stick to it. Maybe it will generate false signals, but system is good if it gains more than it loses.
Trade planning is essential to achieve success. Trader must create plan before entering a market: financial instrument to invest to, when to enter and exit market etc. When plan is created, trader should strongly stick to it.
Money should be spent moderately. A lot of beginners think that they can become a rich overnight. Investing large amounts of money at once in one security increases the risk of a loss, because if the decision was not good you will lose money in just a single trade.
When trading do not think about money. It is better to think about percentages of trading, potential profit and so on. Why? Because when you observe the losses through the money you look at it emotionally. It is better when you say "I have lost 10%" then to say "I have lost 1000$". Losses are part of trading and you should not take it emotionally.
Whatever the outcome of trading is, the only one responsible is trader himself. Often people blame something else for the failure: market, tools of technical analysis, trading systems and so on. But only one responsible is trader himself. He had to do analysis and to take into account all the factors and signals in order to determine the moments of entering and exiting the market. Failure is just result of wrong judgment.
Choosing the right words may be important to increase the calmness when trading. The word "loss" carries great weight and can adversely affect trader and bring emotional dimension into trading, which is not good. As already said trader should avoid the presence of emotions. Therefore, instead of a "loss" you can use the word "cost". It is similar with word "gain". It's perhaps better to use the word "income". So the trading can be described as income versus expenses. What sounds like a business.
Think less in order to gain a lot. People often want to get rich overnight, in one "good" trade. But it is better to earn less in more trades. Their accumulation leads to a large profit. Thus, for example, it is better to achieve five trades with gain of 10% then to wait for one trade with 50% of gain. The search for that "good one" trade can be a long and unsuccessful.