Guest post from visionsofaffluence.com
When most of us start out in the trading business we view it as the path to quick riches. We think that all we have to do is find a indicator, slap it on a chart and then voila we will be transformed into expert traders. This couldn’t be further than the truth, as it takes more than simply using the right indicator to have success. It takes hard work and dedication, but most of all it takes a plan.
You see the forex market is chaotic. At any given time you have a large number of participants all trying to do the same thing which is make a profit. All of these people are competing with each other to be on the winning side of a trade. The only way you will be able to compete with these traders is if you have a sound trading plan. You need to develop a method of trading that is consistent. This is done by setting rules for yourself. Rules that will guide your trading.
Trading rules can be things like the criteria that must be satisfied in order for you to take a trade. Or where you will place your stop and where you will take profit. These rules have to be adhered to strictly because the success of your trading will depend on it. Without these rules you will become a victim to your emotions. You will open and close trades not for any rational reason but rather because you feel like that’s what you should do. This emotion based trading has been the kiss of death for many trading careers and unless you have a plan then the same will happen to you.
A trader is only as good as their plan. If your plan is weak then your trading will suffer. Before you ever take a trader you need to take the time to develop a solid trading plan and then stick to it as if your life depends on it. That is the only way that you will ever be successful in this business.
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