Successful traders do several things that amateurs often forget. They plan a trading strategy, they follow the markets, and they track, and analyze each of their trades. The first step is building a strategic trading plan. This is often overlooked by novice traders. A trading plan does not only incorporate your strategies and how you will decide to make a trade, it will incorporate risk management as well as defined entry and exit plans.
You may have heard the adage, "if you fail to plan, you plan to fail." This is particularly true in online trading as well as investing. Successful traders start with a sound plan and they stick to it at all times. This will help take the emotion out of your trading.
Key elements of a successful trading plan
Choose the assets that are right for you
Your trading strategy
Deciding how long you will stay in a position
Set your risk tolerance
Place a Stop Loss
Alternative scenario
How to set up your trading log
How to evaluate your performance
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Disclaimer:
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.