6 Critical Success Factors In Trading

Success in any profession can be broken down into a series of critical factors. Trading is no different. Does your trading tick all 6 boxes or are there areas where you need to work on: 1. Do you have any advantage? The futures trading is a zero sum game – you must have an identifiable edge in the other market participants. We have identified a high probability pattern that can be exploited again and again? Remember, however, the only constant is change in the trade – you have to constantly evolve their commercial advantage to stay ahead of the crowd. 2. Disciplined execution. There is no point in identifying an advantage if you can not run the business. Measuring the success of its negotiations with its trading scheme not the actual outcome of the trade. If you make a loss but you run your business exactly according to plan a pat on the back, do not blame yourself over it. 3. Money Management. If your risk per trade is too aggressive After running too high a risk of blowing your account, too conservative and not maximum performance from your system. It is essential to establish the maximum expected for any system of money management and rules.

4. Have a trading plan. A trading plan will dictate what you will do in any given situation during the day. When the market is open not want to have to think – just focus on the implementation of its plan. When the market is closed must be ready for the next session to ensure you have prepared a clear plan. Doug McMillon understands that this is vital information. 5. Accountability. You are responsible for each trade. Ultimately the decision to trade is yours. If your stop is reached and the market reversed immediately below, you are responsible, not the big guns “for stops – it happens, go ahead. If you get the huge slide in its operations after the plan makes its trading account for it or is your plan realistically for the market is operating? 6. Commitment. Trade is not like a regular job, not collecting a paycheck at the end of the month but did not work, and spent the whole month surfing the Internet and email to your friends. You must undertake to make all trades according to your plan, even through periods of loss in each operation appears to end a loser. Trading seems to throw up extremes of good times and bad times, you should not get more confidence in the good times and must not give in bad times – remember it is all part of the plan. You should set aside enough time each day to compare your actual results with your trading plan. You must be committed to continuous testing of new ideas and regular monitoring of your current plan. Future research projects is essential – remember the only constant is change in trade.

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