The big question is, where do we need to start a trade? Before executing a trade, you need to set the right goal instead of the wrong goal. If you are a novice trader, the right goal is not to make profits. Your goal should be capturing the characteristics of professional traders and the process of becoming a successful person in this field.
Fix Your Goal
Firstly, you have to fix your goal regarding the process rather than a result. Novice traders are focused on making money. If you want to secure 50% profit per annum, you have to concentrate on your market approach and sharpen your discipline. It looks simple, but it is not. If your goal is to make money, this will not help to secure long term success. To gain success, you need to execute your trading plan properly.
The methods and strategy will help to reach your defined goals. The important fact is, you should prepare yourself just like businessman who never look for the short term profits. You have to remember that the result does not come quickly. To obtain the expected result, you have to follow the right process. Without understanding the nature of the Forex market, you will not be able to forge a successful path in your trading career.
Trade with discipline
Being a rookie Aussie trader, you have a lot to learn from the experts. The elite traders at Saxo never break the rules because they know the consequence of breaking the rules. To protect your capital, you must follow strategic steps to earn a decent amount of money. Never try to boost your confidence level by becoming more aggressive. Try to deal with the losses by following the strict rules. Once you learn to trade with discipline, it will be an easy task to improve your skills and this will slowly make you a great trader in the investment world.
Must Have a Plan
Before starting a business, you need to have a plan. When you are going to trade, you should take your step based on the plan. The plan contains the enter and exit point of trading, and the process of money management. The plan should have detailed information about the risk issues, ranges, and trends of the market. The plan will describe, how the traders will trade, in which environment they will trade, and so on. Before opening another trade, you have to develop a full plan.
Gain an Understanding of Not to Trade
Some people want to always do something in the market. This types of activity decrease the amount of profit which you already gain. Do not trade all the time. Making impetuous trades outside the plan is a common matter. It needs special attention. Trade according to your plan. You need to maintain discipline in your trading process.
Make Simple Strategy
Being complex is not a good path to achieve success. You should avoid making the plan too complex. A complex plan can be a disaster for making profits. You have to focus on one market and ply some simple strategies to gain success. Try to always stick to your plan. If any changes are necessary for your plan, you can make a change. However, you should remember that the changes must be simple.
As a novice trader, you have to focus on reaching achievable goals. If you trade according to your plan, you will get a good result. When there are no opportunities, try to avoid trading and executing using complex plans.
Practice in a demo account
You can test your skills with a Free Stock Simulator. Here, you will get chance to compete with many Investopedia traders. Before taking the risk, you can yield trades in a virtual territory. You need to practice your strategies so that you can apply your strategies relevantly in this field.