As with most other areas of life, an excellent way to rapidly improve your Online Trading is to record your trades, review them regularly, and then make improvements based upon the lessons you learn and the feedback you gain.
Doing this will rapidly accelerate the speed at which you both learn and improve, be it forex, stocks, bonds or commodity options.
Simply because you CAN trade any financial market – be it forex, stocks, futures, or options trading – does NOT mean that you should be involved in trading several or indeed many. In truth, the modern trader is confronted with a wealth of diverse opportunities. Moreover, with the 24-hour forex trading now a reality, you can now trade virtually whenever you wish throughout the business week.
A danger in day trading is jumping on low quality setups. It is extremely common, and not just with beginning traders. it occurs at many levels of trading expertise, even on professional dealing floors. It almost always happens when a trader has no established trading methodology. In other words, he/she looks at the market, performs an ad-hoc spur of the moment kind of analysis, and then puts the trade on as a result. Only when the position is live does said trader have lots of time to then see all the contrary indications to the trade!
In day trading, the ability to be independent is even more important than in other life arenas. That is because in the day trading arena, there is no such thing as “absolute truth” and there is no end of opinion, conjecture, rumor and fantasy. Hope and Greed play their part too, and overall create a landscape of illusion wherein a person with no independent opinion of his/her own will be swept away to rapid destruction…
Novice day traders have little idea how to manage their trading risk,
even as a concept. The typical pattern is that they put on a
trade based upon some fairly poorly defined criteria, and when
the market eventually moves against them, they are clueless as to
when to get out of the position. Instead, they will typically let
the trade worsen until it is eventually too painful to retain.
The experienced trader, however, places risk management at the
heart of the entire trading plan from the very beginning…