Planning is an important and necessary part of trading or any kind of work. Before going anywhere everyone does planning for the trip, marriage, and shopping as well as trading. Planning includes what they will do there and how they will enjoy there, everything is planned according to the plan.
Like this the same way we follow the same process in the trading career. Before jumping into the trade every trader must have a trading plan. Everyone knows the trading plan is the golden heart of trading.
One more thing do you know about trading? The market is only those traders who love to make trading plans and follow the trading plan whether they bear the loss or face any kind of issue.
We know everything about planning without planning we can swim the boat for a long time in the stock market. If you have a plan then you can run the bot over the water of the trading.
Table of Contents
Before every trade, you should know about scripts
Now the question is arising about what we should know in the market. Mean you have some knowledge about your trading and what you will trade in the market. What chart pattern you will follow during the training, everything you must address before every trade.
Every time you must be aware of your trading and what kind of trading are you doing. There are many concepts of trading by following you can become a trader in some time. Yes, you hear right if you don’t follow the rules of the market and are not aware of your trading style then maybe you survive for a long time in the market.
Analyze the charts in various time frame
This is the main and first setup of the trading. Before taking the trade you must analyze the chart. Because the chart has the power to tell everything in the market. if you do not have a little bit of grip on the chart then you may have become a trader. So you must do planning in the market before reaching any decision.
The chart is the soil of the market Because the chart indicates all of the actions of the market. You can predict all of the things in the market with the help of the chart. On behalf of the chart reading, there are many opportunities to grab.
You can take a trade on the indicators, but you must be aware of the chart reading. You can say the chart is open source to take the trade. If you read the chart repeatedly, you will find something every time while analyzing the chart. So that’s why we are recommending analyzing the chart before taking the trade.
Know about your entry and exit pattern
In the market, everyone has his trading pattern. Many traders like to trade on naked price action, and many traders love to trade with indicators. As you can say everyone has his trading style.
Now come to the point while trading you must know about your trading pattern. If you like to trade with a candlestick chart pattern then you must trade with your candlestick style. If you follow indicators then you take on behalf of indicators.
Now the question is raised what is our trading pattern? The answer to this question is straightforward. How this means you follow your trading style like you are doing trading on the hammer candlestick then you must wait for the hammer candlestick? Whenever you find the hammer forming then take the trade without any hesitation.
If you follow indicators, for example, you are doing trading on rsi diversion then you must do trade whenever you find the same setup next time in the market then you should take the trade.
This is your entry pattern in the market. Many traders are confused about their trading entry pattern. Because they are always confused about what is entry patterns and how to prepare them. Your daily routine is your trading entry pattern.
Set a stop loss + risk management as a protection
What is a stop loss, I saw many traders who do not like to put their stop loss in the market. Because they know the market can’t touch their stop loss. But I’m recommending you very strictly never follow them because the market is not operated by them or their father.
Always trade with proper and managed stop loss. You know very well if you are not put a stop loss in the market then the market can wipe out your whole capital in a single trade. Stop loss is the most important part of trading.
Risk management is also part of trading. If you are trading without managing your capital. Then you long will you do trade. Management can give proper guidance to everyone on how they can survive in the market.
Set a take profit target to improve your confidence and capital
Profit taking part in the trading. The market gives a profit to every trader but many traders do not book their profit on time. That’s why the bear lost because them does not book the profit on the time in the market.
In the market, a lot of traders are lazy and greedy. They think the market will give more money I’m waiting for more. But sometime later the market gives huge loss them. So that’s why please take profit on time.
If you start to make little profit then the market will give you a big profit letter. Because the market knows everything who is following the follow of the market and who is not. So always book the profit on time.
If you book profit regularly then your mindset and phycology level will rise. You will start to control all the things who important for trading. At the same, I have made many mistakes in the market and many times I wiped out my account while trading. So I suggest you make a proper plan after and before the market.
Planning After every day you should do something in the market
At this point, we are going to see what we should do after post-market. If you want to succeed in the market then you must follow these rules. Some trades follow those rules in the market regular basis and get success sometimes.
Everything depends on your daily bases routine. If you write down all the history of your trading. Then you will get more knowledge of the market. Like how you can make improvements because, in your daily routine, you will learn something.
We are going to learn new lessons in the market and how we can do new something in the market. Watch more and more charts and do proper searches after and before the market.
Do a Journal of your trading and how you felt after doing that
In trading, you must journal your trade and think about all your activities while you are trading. whenever you place a single order all of the order histories must be in your trading journal book. This is a good habit of every trader to track their history of trading.
One more important thing is how you feel while trading write everything in your trading journal book. History will help you become a trader. Because whenever you read your trading history book you will explore more things in trading.
Once you place a trader you must write it down in your Excel sheet also. With the help of an Excel sheet, you can trace your all history of trading very easily.
How do you feel while trading write everything in your trading sheet. You can use a notebook for the entry about writing purposes. When you will start writing in your notebook related trading then you will start observing the mistakes you made while trading.
Outline any lessons learned from the mistakes that was done by you in live trade
What did the lesson you learned while trading include everything? Everybody knows mistakes show you are trying to trade. When you did mistake try to rectify your mistake in the next attempt.
Find out your mistakes and outline your big mistakes. From mistakes try to learn something new because we know that mistakes are our best teachers too.
Lessons are an important part of trading. If you did learn anything from your mistake then you are not a trader. Outline everything you have learned from the mistake.
Record your Percentage gain/loss and risk-reward Ratio
After closing the market record your all profit losses and the winning percentage of your trading history. And compare your last trade. Record everything the number of winning or several losing trades.
You can measure your win-loss ratio by this formula Wins/losses.
How many percentages you earned in the market record everything. How much risk and reward have you followed in the market while trading? Record simply.
Prepare charts for the next day after the market close
Watch the chart before the opening market. This is a very good habit of the trader because the trader knows if he succeeds in getting a grip on the chart then he will master the trading after some time.
Look out for all of the chart patterns and keep them ready for the next trading day. If you have completed our study then you will not be afraid to take trade in the market.
Do you know why many traders do not prepare charts after closing the market? Preparing the chart is like homework in the market. If you do homework on the chart after closing the market then you will get more accuracy in your trading style.
