The smart money concept is a trading method that is based on analyzing the behavior of smart money, namely groups of very large fund holders such as banks, institutional investors, fund managers and professional traders. This method aims to follow smart money movements that influence market prices because they have the ability to estimate market conditions more accurately than retail traders. This method also relies on two main things, namely market structure and liquidity
There is no best method for trading that suits everyone. Every trader has different styles and preferences. However, there are several general principles that can help traders achieve success in trading, namely:
Make a clear trading plan and be disciplined in carrying it out.
Maintain risk in trading by limiting losses.
Uses technical and fundamental analysis to make informed trading decisions based on data and not on speculation or feelings.
One of the biggest challenges in trading is controlling emotions, especially greed. Greed can make us overtrade, chase the market, or hold onto losses for too long. Here are some tips to avoid being greedy when trading:
Set a profit target and stop loss before entering the market. This will help you be disciplined and avoid the temptation to change your position according to price movements.
Follow your trading plan consistently. Don't be tempted to change your strategy just because you feel confident or afraid. Always evaluate your performance objectively and learn from your mistakes.
After a loss, many traders can only surrender and hope for profits in the next trade. Has anyone experienced this too? But actually just meditating after a loss isn't enough, Bro/Sis. We also need to check ourselves and improve the existing mindset. Don't forget to always use TP (Take Profit) and SL (Stop Loss) okay!
1. Lack of understanding and preparation. Learn the basics of trading, don't be tempted by big profits without knowing the risks.
2. Go against the trend. Follow the current trend, don't fight it. Use indicators to define entry and exit points.
3. Open a Late Position. Open a position when there is a strong price action signal. Don't wait for the trend to saturate or end. Do not change time frames or indicators.
4. Averaging Loss Position. Averaging is adding the same position. Don't do it on a loss position, you can lose big. Set loss limits and close losing positions.
5. Trading Addiction (Over Trading) and Emotional. Trading is not a toy or a hobby. Trading requires discipline and self-control. Do not open positions without reason or emotion.