Ten Secrets to help you prepare for trading success.
The word “secret” is usually used for information shared by only a few people. The secrets on the following blog and upcoming series, however, are known by many successful traders. Now they can be part of your knowledge too.
Secret one: Know your trading rules and strategies
Discipline is an essential quality that traders must have. A successful trader once said: “Winning trades are the result of controlled emotions and the courage to take intelligent risks.” Whether you are doing discretionary trading, or you’re following some version of system trading, you must have the discipline to follow the rules that you have pre-defined.
In order to be a disciplined trader, you must only trade price actions and patterns that fit your strategies and rules. Not all price actions are tradable. Out of their eagerness to trade, or their fear of experiencing losses, traders may be tempted to act impulsively, and contrary to the rules of their system. This can lead to big losses for non-disciplined traders. Fortunately AbleTrend can help you to carry out your trading disciplines. AbleTrend provides buy/sell signals with support and resistance levels at glance as shown below.
As we all know, trading is a game where the trader sets the rules instead of the house. As a trader, you need a business plan built around trading strategies that can be implemented using specific rules. Since the array of possible market price patterns is unlimited, it is impossible to come up with strategies and rules that will fit every conceivable market price action. There are bound to be some actions that your system cannot handle. If you are consistently trying to adjust your strategies and rules to fit every new price pattern, you eventually become a rule-less trader without any discipline. It is inevitable that your trading strategies and rules will only fit certain market price actions. If market price actions do not fit your trading strategies and rules, do not trade.
You need to patiently wait for the unique price patterns to appear that you are prepared to trade. And do not be concerned about missing out on some moves. You will always have more opportunities in front of you. The market constantly alternates between narrow range price consolidations and large range price movements; the ratio of price consolidations to price movements is approximately 80:20. Experience has shown that during price consolidations it is not appropriate to initiate trend-following trades. Many experienced and successful traders report, however, that they have very good success when they take the entry point at the END of a price consolidation. That is why we must be patient and be very selective.
In the upcoming blog – Secret Two: Buy on Price Strength and Sell on Price Weakness
The best way to learn a skill using trading software is by practicing it. Though the webinars and free one on one trading sessions will help you to prepare for actual trading on the live markets, it will not tell you how your psychology will react to the experience. This insight is gained only through experience, so give AbleSys trading indicators a try today. To get extra 10% off for AbleTrend 7.0 30-day trial, here is the code: WTMF10 (order online).
You may also learn more about AbleTrend on our blog: blog.ablesys.com
And watch archived sessions from our introductory and member’s webinar series:
Click here to view our youtube page
I welcome your feedback. Did you like today’s message? What other topics would you like to see? Please let me know at gracezh@ablesys.com
If you are an AbleTrend user this is a great time to share and introduce this great tool to your family and friends for the prosperity of 2016 and the years to come.
Happy Holidays!
Grace Wang
AbleSys Corp.
gracezh@ablesys.com