Today we will talk about how we can change our trading behavior. You know very well trading is not easy in any segment like forex trading, stock trading, and crypto trading. There are many ways to find out how your trading is going on.
Today we are putting light on important concepts that are very useful to every trader and they will help to raise your confidence in your trading journey, even if you are trading in Forex, Stocks, and the crypto market.
Measurement of trading behaviour is essential to know because on it we can earn more knowledge about the market and maybe we can raise our capital.
If you follow the schedule for the measurement of trading behaviour then you will be habitual and after spending some time in the market you will start making a grip on it after you start earning a profit in the market.
Many traders have a question How do you earn money from the stock market? How to earn money from forex trading? The simple answer to this question is to follow the rules and find out the method with the help of this you can change your trading method or behaviour.
Table of Contents
Daily repetition for at least 3 months
You must repeat your daily ration for at least 3 months. After that, things started easier. If you do any activity in your daily life then your subconscious mind will adopt everything and start working on it without informing you.
The same method applies to trading. If you do trading for three months then you will start learning about trading. Because it starts to save data in your subconscious mind.
Ancient people told us if you want to succeed in any method then you should have a plan and follow it even if you don’t have earned anything from this business. After 90 days your mind will be hebital like that and start work on it.
For example, You have created a watch list of stock and forex. After creating the watchlist you have started watching the watchlist. Spending some time on it you realised you have gained some knowledge and you know how the script is working and moving.
So the final result is to do everyday new one and follow it at least for 90 days. Make the challenge of it.
If you repeat something you will be a master in that skill because you are doing same thing repeated and regularly. After some time it will take a place in your habitual category. That is most important part for trading in forex, trading in crypto.
Create a new checklist daily
You must create a checklist and follow it to find out how you can make more profit in the market. The checklist can belong to any business. But we will discuss trading.
You must create a checklist in trading. How you are going to follow your plan and what kind of stock you are going to analyze. In the checklist, you must have things according to you.
In the market, for trading, you have three conditions to change your trading behaviour.
Before the trade =-= You should know how the trend is going on. Trends play a very important role in the market. If the market is going on the uptrend then you place a long trade, Trend is going on the downside then you should go with the short side and if the trade is going in the range then you must go with a breakout of the trend.
You must check before the trade is going with your suitable indicator, Trading with an indicator is not important but you can get help with it.
Risk Risk-reward ratio also plays a main role in the market. Follow it properly. And enter the trend on a positive risk-reward ratio. You should not take risks more than 3-4% of your entire capital in a single trade.
Script Information = You must grab the information to create your watchlist in the market. If you don’t have information about the script then how do you determine your trading style?
Track progress and rectify if need
After doing these things you must track your progress. This one the most important part for every trader or any common man. Suppose you are not tracking your progress then how you will improve yourself and how you will find out the mistakes in the market.
Tracking the progress is very helpful for improvement. If you go into the loss every time and you are not tracking why you are in loss. It means you are not in for tracking your progress. This will help you improve your trading behaviour and also help you become a profitable trader.
Progress shows how you are doing and your growth and failure rate until now. If you make a proper track list, you have information on which partition is going on the loss and growth sides. In other ways, we can say it back the bone of every business.
Write down the reason for the failure
If you note down your reason why you are failing and why you are not writing that means you are not writing down or not trying to rectify your mistake.
Failure is part of every business. If you are not facing failure then maybe you can’t stay in any business for a long time.
If you are trying and getting failure then congratulations many people won’t try even. It means you are trying and failing. Failure brings expression and it opens a new door for new idea generation. In the forex market, If you don’t have any kind of idea then you will not improve in your trading behavior.
Detailed analysis once a week for trading behaviour
That is the last process before changing your trading behaviour. Doing the analysis deeply is the most important part of every trader. Because it helps to get too close to the trader and helps in changing the trading behaviour. Sometimes I see there are many things to consider in the market. Like doing research before jumping and finding out the proper level of the market.
If you do daily detailed analysis once a week then it’s helpful to find out the market structure, trend, or chart patterns. This information traders can use to make more effective, useful, and informed trading decisions in the future.
Win rate: The Trader should consider the winning rate in the week. If the trader has more than 50% then it’s considered good and the trader can improve it. But here must be considered all of the winning rates depend on the market behaviour or trading behaviour.
Average profit: This one is dependent on per winning trade. Spouse your every trade is going in the profit then your average starts rising. If you are not then maybe your trading average will fall. Everything depends on the trader’s strategy and how the trader is using this one.
Average loss: The trader must consider how much he can bear and how much amount he is ready to lose. If a trader does not know what is the average loss then how a trader will stay in this game? I know trading is not easy but it’s not hard if you do proper management in the trading.
Risk-reward ratio: This is called the ratio of average between profit and loss. If a trader follows a higher risk-reward ratio then it means it can bear huge losses and big profits. A good risk-reward ratio denotes a perfect trader in the market.
These points help to trader make changes in their trading behaviour.
