June 13, 2024

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Preparation as the Initial Key to Trading Success

Objectivity: Planning Trades the Right Way - Warrior Trading

Trading in the stock market like olymptradewiki.com, forex or gold is never easy, because the market is always changing dynamically. Think of the market as the sea and the trader as a fisherman. Ocean conditions can change drastically in an instant. Calm seas can turn violent, or vice versa. Are we as a fisherman, we will immediately plunge into the sea without any preparation first? I hope not. Before you trade, you need preparation.

  1. The first thing you need is MENTAL PREPARATION

Mental preparation is the first and most important step to be successful as a trader. The reason is, in trading you will be fighting against yourself, namely our ego, emotions, indiscipline, impatience and stupidity. That’s why we have to be mentally prepared. If you are sick, chances are you can’t trade well. Dizzy thoughts because there are problems in the family or a breakup of course will interfere with trading execution later. Emotions can be disturbed. That’s why I always suggest if you don’t have the “mood” for trading, don’t force it, it’s better to take a short break. To get in a good mood when you want to start trading, you can use some relaxation techniques. For example, drink coffee, tea or your favorite beverage. Or you can also set your favorite music. Maybe you can meditate too.

  1. The second step is TECHNICAL PREPARATION

What you need to prepare is to make sure your computer and internet connection are smooth. It’s not funny when trading is interrupted by a slow internet connection. Prepare your smartphone if there is an emergency power failure or other things, so you can’t connect via a computer. Then you also need to have prepared a trading plan before the market opens. It is recommended to do an analysis before the market opens, so that it is more objective and then just carry out the trading plan. Then we also need to monitor the market before the market opens to ensure market conditions are still in accordance with the previous analysis. By monitoring the market, we can get the “feel” of the market that day. Here we can determine whether to stay in accordance with the previous trading plan scenario or need to change the strategy,

Trading is like any other job that also requires good preparation. In fact I say preparation in this trade is much more important. For me trading is 90% preparation and 10% execution . I actually spent more time in preparation for this trade. I spend time doing analysis in the evening after the market closes. Then I always wake up very early to analyze the market, before the market opens to adjust to the previous night’s analysis. Everything I do every day routine. Precisely during trading hours, I am more relaxed, because I already know what stock to order, buy at what price, sell at what price, and so on. So when the stock market is running, I’m mostly just hanging out or taking a nap.

There is no substitute for good preparation. Traders who are better prepared are those who have an advantage over other traders. Traders who are better prepared will also be better prepared to face dynamic market conditions. Preparation is basically the initial key to trading success .