The vast majority of traders lose money from maplestory adventure shop. So much so, that it’s not uncommon for a trader’s account to be depleted or even completely wiped out within a matter of days to months. Something has to change…
In this blog post, we’ll take a look at five ways you can start approaching trading differently in order to achieve better and timelier results.
1. Start using trend following as a filter
Using this filter will allow you to get in at the right time with the right amount of leverage. It’s not uncommon for some of the best traders in the world to use trend following as a filter. That being said, it’s also not uncommon for most traders to remain skeptics of this practice, simply because they don’t know where to begin. Below is a very simple example of how you could apply a trend following filter in your trading:
If you look at this chart below, especially at the lower time frame, we can see that there’s been a massive trend up in EUR/USD over the past several weeks:
2. Utilize the concept of “diversification”
I recently spoke to a trader who was trading 3-4 pairs at a time. It was pretty obvious that this wasn’t working for him, but he said he was doing it because that’s what other traders in his group were doing. You see, most traders don’t realize that they don’t have to trade everything. Instead, they think that diversification is simply about trading as many pairs as possible. In reality, diversification is about not putting all your eggs in one basket . If you plan on being in the market for any length of time, learn how to create a strong base of operations and utilize risk management before you add on more positions.
3. Start trading with leverage
As a new trader, leverage can seem like a bit of a scary thing. After all, if you’re trading with leveraged positions, you’re just asking for trouble right? Let me tell you why this isn’t the case and what to do instead:
You don’t need unlimited amounts of leverage. In fact, there are many ways to implement risk management into your trading process that will help prevent an excessive amount of loss:
4. Utilize indicators and signals
Most new traders start by reading articles on how to use technical analysis in their own trades. What they fail to realize is that an overwhelming majority of the time in their own trades they actually use other indicators . Why wouldn’t they use them? After all, they’re not going to get proper signals and indicators are made up of numbers and numbers can be manipulated.
Most new traders fail to understand the concept of “sending prices” . This is an important concept that will often get them into trouble when it comes to technical analysis. Instead of trying to predict what the market is going to do and looking for patterns, you should be looking for guidance from the indicators in order for you to reach your trading goals.
5. Focus on mindset and risk management
The reason these other points (1-4) in this article are able to work is because you have focused on a few key principles . It’s important to have an overall mindset when it comes to completing trades. This means you should be able to adapt quickly, handle losses and don’t crumble when you make a mistake. You also need to understand that risk management is about much more than just limiting your losses . It’s also about being flexible with the strategy you choose. These will all help you attain better and timelier results.
6. Develop a trading plan
You’re not going to get results just by implementing new tactics mentioned in this article. You also need to develop a trading plan. A trading plan consists of the following:
This allows you to have a clear end goal and it allows you to set realistic expectations . It will also allow you to pinpoint the areas where you need improvement and the areas that are going well for you. It’s a simple concept but I can tell you from personal experience this has been extremely helpful for me as well as one of my clients we are currently working with.
7. Use multiple time frames in order to make better trades
Most new traders only use 1 or 2 time frames (usually 10 minutes or less). This is extremely limiting and can lead to disaster. Instead, learn how to use multiple time frames in order to achieve better results in a shorter amount of time. One of the best ways I was able to improve my trading was when I learned how to trade stocks with daily charts as well as the stock market indices. If you’re not familiar with this type of trading, it may seem a bit confusing at first but it’s easy once you understand it.
Summary:
You can have all the best traders in the world and still trade poorly if you don’t have a plan . You need to learn how to establish and execute on a trading plan with multiple time frames in order to make better trades. These principles are extremely simple and straightforward, but that’s what makes them so effective.
