Finding the Best Trades

 

Every trader wants to be successful. You will create trading strategies and implement them when you feel you’ve found the best trade. But how do you go about finding the best trades? How do you make sure that you only open trades that will be successful. Besides for having a trading strategy, there are some tips you can follow to make your trading more successful.

Understanding How Your Strategy Works with the Charts

It is not enough to have a trading strategy. And because you can’t just trade all the time, you need to be able to read the charts and work out when to use your strategy to trade. It’s important to understand that the market goes through different phases and that the strategy you use will work better in certain situations than others. You’ll then need to learn to identify these situations.

Don’t be Rigid in Your Trading Time Frames

Because the market undergoes different phases, you can’t be too rigid in your trading time frames. If you become too set in the daily, 4H or 1H timeframe, you might miss trending markets or find yourself in a timeframe that is too quiet. By moving around the different time frames you’ll get a better idea of what the market has to offer.

Hone Your Skills and Your Strategy

The best way to find the best trades is to become an expert at what you do. Choose your trading style, develop a trading strategy and focus on a specific pattern. If you focus on one type of pattern or setup, you’ll learn the nuances and how to see if the trade will be successful or not. If your trades are all different, you’ll never become an expert and will probably never be consistently successful.

Reduce Your Screen Time

This may seem counterintuitive. Afterall, how can you find the best trades if you’re away from your screen. The truth is that if you’re glued to your screen, you’ll often make trades that you shouldn’t. Perhaps out of boredom or perhaps trying to chase a loss. You may be overexcited, or you may react too quickly to changes. Using price alerts can help you get away from your screen without missing out on trades. By moving away from your screen, you’ll clear your head and get over your emotions, especially stress caused from a losing trade. Then, when you come back, you’ll be prepared to make sound and well-thought-out decisions.

Make Changes

Especially if you’re in the early stages of trading, you need to assess your trading strategy regularly to make improvements. Pick one or two tips to implement at a time and work on these until you have mastered them. Look at your successes and failures and work out what happened and why. Trading takes plenty of work, especially in the early days when you’re working out your systems. Take the time you need to excel in your strategy and over time you’ll be able to find the best trades.

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