What do you think of planning? Most beginners believe planning isn’t important for trading because their intention is money. If you look at Singaporean traders, they will spend a lot of time to prepare and plan for trading before they execute a trade. They follow Abraham Lincoln’s style of planning. He said, “Give me six hours to chop down a tree, and I will spend the first four sharpening the ax.” You should understand this statement if you want to become better at what you are doing. Even in Forex trading, you can’t directly enter into a trade without a proper plan. Why do you think that successful traders spend a lot of time to prepare for a trade? It is for the same reason that Abraham Lincoln highlighted in his statement. If you spend more time planning, you are less likely to go wrong when you execute the plan. As a trader, you shouldn’t devalue pre-planning. In the Forex market, it is crucial to prepare yourself for trading.
Fast trade execution
Who says trading takes a lot of time? Nobody! It is not trading that takes more time, rather it is planning. As a beginner, you should spend more time planning than a successful trader, is that true? Not really! It doesn’t matter in which level you are, the time you allocate for planning shouldn’t be sacrificed. The step of trade execution takes only a minute or less, but you won’t be able to do it successfully if you don’t plan accordingly. The time you allocate for planning decides whether you are going to win or lose. Even if you are losing you should lose with a small loss, for that, you should plan! So you see, one way or the other, planning is the central axis of trading.
Using the leverage
You need to learn the proper way to use leverage in the trading profession. Many novice traders execute trades by using low-quality trade setups in the trading platform. You have to understand the fact, leverage trading is a very risky business. Unless you prepare to understand how this market works, you are most likely to lose money. Many retail traders often consider leverage as a double edge sword. So, learn its use before you trade the real market. Once you master the use of leverage, you can easily execute big lot trades by using the Saxo trading account.
Don’t avoid the technical levels
You should know that support and resistance levels are important. You can’t avoid them at any cost. These levels have the power to make or break your trading journey; therefore, keeping an eye on these levels will smoothen your trading path. When you are continually watching the short-term charts, you are likely to forget these levels, but that shouldn’t happen. The market movement shouldn’t remind you of these levels, because then, you are in a critical situation. Therefore, don’t avoid or forget these levels when trading short-term charts.
As a beginner, you might not know the role economic releases play in your trading journey. However, you should consider news events and economic releases every day because they help you make better decisions. Moreover, when you get immersed in watching the charts, you will not remember the news releases. Therefore, you should avoid making this mistake. You can begin by checking the economic calendar, and it will help you straighten up your trading path.
Further, when you’re immersed in your charts, you are vulnerable to miss the news release moments.
You can’t make decisions that will never go wrong because it is impossible. Some of your decisions might go wrong even if you spend hour and hours in planning. Yet, you shouldn’t overlook the importance of planning. Despite the wrong decisions, you should continue planning if you want to become a pro at trading!