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 stop-loss levels, and establishes profit targets.
3. Preparing a trading plan: A trader should prepare a trading plan that defines trade size, risk percentage, and determines the right time to trade.
4. Managing risks: A trader should set a stop-loss level, avoid risking more than a certain percentage of capital, and handle losses positively.
5. Controlling emotions: A trader should avoid emotional influences on trading decisions and stick to the plan that has been previously set.
6. Continuous learning: A trader should keep up with the latest market developments and continuously learn from past experiences and the experiences of others.
Examples of secrets to correct trading:
Setting profit-taking and stop-loss points:
