The only way to become a better trader is through practice. But practicing is not enough.this is only the first of the 3 steps: practicing, reviewing, and adapting which will allow you to dramatically improve your daily trading skills.
Once a trader knows how to make a good entry, calculate the ideal number of shares bought lots, manage risk and have set a strategy to follow, they must practice it in daily trading so they can consistently and correctly take action in the fraction of a second needed to make money in under fast-moving trading conditions.
Then they need to take the time to review the trading results that have been made to determine which trading strategies are successful and which are not.from the results of this review traders will adjust their trading plans based on what they have learned. This change can be done in stages so that it can be practiced and reviewed periodically.
Practicing Daily Trading
Reading articles or watching videos is not enough.Daily traders need to repeatedly practice what they learn before it will become quite ingrained and useful in making trading decisions in changing market conditions.practice is not just a matter of taking a little time, for optimal results practicing daily trading can take hundreds or even thousands of hours.
To practice effectively, focus on certain activities. This is where the importance of trading plan.trading plan is a document that specifically describes how, why, and when a trader will enter and exit a trade; how they will control risk; and what their position size will be. It also details which markets will be traded and when.
Practice involves following a plan so progress can be tracked.if trading is taken based on random factors or psychological desires, the results of trade will also take on unexpected and random traits.
Practice with one trading strategy at a time, in a demo account, until that strategy becomes a habit. For example, you can scroll through charts and choose where to buy points for your strategy.do this repeatedly until you can see all the buy points given in your strategy. Daily trading requires fast reflexes and the right time. Practice again so that the entry appears exactly when it should, based on strategy.
The next step is to practice placing stop-losses correctly. Then practice placing the profit target correctly.it takes several weeks to several months to master each element of the strategy. After you have skillfully placed entry points, stop-loss levels, and profit targets based on your trading plan, start to include other elements of the trading plan such as how many ideal lots you should buy.adjust the trading risk that you set, both the risk in each trade and the risk in 1 trading day.
Although it might sound a bit strange, you have also practiced what not to do.Your goal is not only to follow your strategy and take all the trades that it recommends (when conditions are favorable, based on your trading plan) but you also practice to sit still and refrain from trading when your strategy does not give a buy signal.
If your strategy does not signal a trading opportunity, then do nothing.the patience needed to wait for valid trading signals is still lacking in most new traders, but this can be obtained through practice. Practice being patient and pouncing when a valid trading opportunity arises.