The most important secrets of correct trading are understanding the market, setting a clear strategy, preparing a trading plan, managing risks, controlling emotions, and continuous learning.
1. Understanding the market: A trader must understand the nature of the market they are trading in, the types of assets they are trading, and be aware of price movements and events that affect the market.
2. Setting a clear strategy: A trader should have a clear strategy that defines entry and exit points, sets a stop-loss level, and establishes profit targets.
3. Preparing a trading plan: A trader must create a trading plan that defines trade size, risk percentage, and the right timing for trading.
4. Managing risks: A trader must set a stop-loss level, avoid risking more than a certain percentage of capital, and handle loss positively.
5. Controlling emotions: A trader should avoid emotional influences on trading decisions and stick to the plan they set beforehand.
6. Continuous learning: A trader must keep up with the latest developments in the market and continuously learn from their past experiences and the experiences of others.
Examples of secrets to correct trading:
Setting profit-taking and stop-loss points:
A trader must apply discipline and consistency in trading, and not change their plan randomly based on sudden market changes.