An investor (trader) is an analyst plus a decision maker. But the system and correct recognition of signals are not enough. Investing (trading) is an activity that requires making good decisions. And it is decisions of a specific type - under the conditions of the existence of risk. This very important topic. Today we will cover the first step towards making your decisions the best they can be.
Step 1.
The first step is to get a certain amount of tasks to solve. The idea is that in the market, you will make a decision on the signal you see when trading.
Looking only at historical signals, you see both the signal itself and the movement that followed.
But in a real market situation you will only see it as it draws up. Hence, prepare yourself a dozen (several dozen) screenshots (graphics) with the movement that followed the signal removed.
The idea is to make the situation realistic: to get your brain used to seeing the signal as it will look in real time.
The more examples you have of this:
Note: many people do not know moderation in analysis, they learn more and more tools and become analysts. However, analysts do not earn as much as traders, and in general you should be very careful with these analyses. Analytics can and often are an instrument for fooling and misleading the masses of traders and investors who trust them. This ends in losses, of course.
Your task is to become a good analyst (from your system) and immediately educate your decision-making skills as well.
The first goal you strive for is to correctly execute the trade from start to finish. And this is what you should focus all your energies on at the very beginning of using your new system.
Correct execution of the trade consists of the following:
Step 2.
Post-Trade Analysis. Studies show that only those traders/investors who perform post-trade (after-the-fact) analysis systematically increase their profits.
That is why it is so important that you do it systematically as well. Analyze your preparation (pre-trade analysis before trading - whether it was done correctly), entries, position management and exits.
I will suggest a few questions that will speed up this process (of learning and earning):
You may already see - that by making a trade you can benefit in two big ways: either you learn something or make money, or both.
You have above a ready-made excerpt to analyze your own trades and learn from your experience. And if you have a problem with something - you will know (when it occurs) what part of your trade you should work on.
When learning and then making trades, systematize your analyses:
1. the first analysis can be right after trading, fresh, whether you performed everything correctly (according to the questions above).
2. The second analysis can be at the conclusion of the week: e.g. you sit down on the weekend when there is no market and review the trades of the whole week and once again analyze them with your notes.
3 You can also do periodic analyses - for example, once a month, at the end. It's worth doing them because you'll see that you're moving forward and gradually, systematically learning and being at a higher level. You will then realize that your learning a new profession is a certain process, that you are on the right path (of the best) and that in some time you will realize your life plans thanks to your success in the market.
As you can see, we consistently set everything up so that you learn the key things as quickly as possible and can systematically earn and live from the markets as soon as possible.
Step 1.
The first step is to get a certain amount of tasks to solve. The idea is that in the market, you will make a decision on the signal you see when trading.
Looking only at historical signals, you see both the signal itself and the movement that followed.
But in a real market situation you will only see it as it draws up. Hence, prepare yourself a dozen (several dozen) screenshots (graphics) with the movement that followed the signal removed.
The idea is to make the situation realistic: to get your brain used to seeing the signal as it will look in real time.
The more examples you have of this:
- the faster your brain gets used to seeing the signal "in real time"
- the faster you will make good decisions - correctly identifying the signal.
Note: many people do not know moderation in analysis, they learn more and more tools and become analysts. However, analysts do not earn as much as traders, and in general you should be very careful with these analyses. Analytics can and often are an instrument for fooling and misleading the masses of traders and investors who trust them. This ends in losses, of course.
Your task is to become a good analyst (from your system) and immediately educate your decision-making skills as well.
The first goal you strive for is to correctly execute the trade from start to finish. And this is what you should focus all your energies on at the very beginning of using your new system.
Correct execution of the trade consists of the following:
- correct pre-trade analysis and preparation.
- Correct identification of the signal and entering the market, knowing that you may feel pressure to trade, greed, fear, etc. emotions.
- Correctly managing the order from opening to closing.
- Corre
Step 2.
Post-Trade Analysis. Studies show that only those traders/investors who perform post-trade (after-the-fact) analysis systematically increase their profits.
That is why it is so important that you do it systematically as well. Analyze your preparation (pre-trade analysis before trading - whether it was done correctly), entries, position management and exits.
I will suggest a few questions that will speed up this process (of learning and earning):
- did I make a correct analysis of the market and was I well prepared to trade (about that in a moment)?
- did I correctly identify the signal and enter the market in a good place?
- did I put SL and TP in the right place?
- did I manage the order (and myself) correctly - minute by minute?
- did I exit the order correctly? In the right place?
You may already see - that by making a trade you can benefit in two big ways: either you learn something or make money, or both.
You have above a ready-made excerpt to analyze your own trades and learn from your experience. And if you have a problem with something - you will know (when it occurs) what part of your trade you should work on.
When learning and then making trades, systematize your analyses:
1. the first analysis can be right after trading, fresh, whether you performed everything correctly (according to the questions above).
2. The second analysis can be at the conclusion of the week: e.g. you sit down on the weekend when there is no market and review the trades of the whole week and once again analyze them with your notes.
3 You can also do periodic analyses - for example, once a month, at the end. It's worth doing them because you'll see that you're moving forward and gradually, systematically learning and being at a higher level. You will then realize that your learning a new profession is a certain process, that you are on the right path (of the best) and that in some time you will realize your life plans thanks to your success in the market.
As you can see, we consistently set everything up so that you learn the key things as quickly as possible and can systematically earn and live from the markets as soon as possible.