TRADERS NEED TO ASK MORE QUESTIONS FOR TRADING IN COMMODITY/SHARE/STOCK MARKETS like MCX (India), NSE (India), FOREX, COMEX (USA)
The process of asking questions is what is needed in order to gain more knowledge in trading Commodity, Share and Stock Markets. The trouble is most traders do not have enough experience to know what the right questions are and how to do trading in professional way to make consistent profit. If you apply simple common sense, then you will be on a great start to learn how to identify investing or trading opportunities and find the right strategy to take advantage of those opportunities in Commodity, Share and Currency Trading. Some questions traders need to ask themselves include, just for starters:
How much time do I have to dedicate to the markets?
If I enter a day trade, do I have the time to watch this position, or do I have an appointment or meeting scheduled for that day?
What are the possible out- comes of what I am about to do, based on what I have control over?
Focus on what it is you want to achieve, write it out, and concentrate on that goal. Think of the consequences or possible outcomes of your actions so you will have a more balanced emotional reaction if the outcome is not as positive as you expected. Ask questions such as:
Do market conditions warrant increasing or decreasing my position size?
Are there reports coming out that may impact the market or my position?
Are my entry and exit targets justified?
If the market is so bearish, why won’t it go DOWN?
If the market is so bullish, why won’t it go UP?
Trading without asking questions or without probing leads to trading blindly or without a plan. It opens the door for destructive emotional interference. What has happened in the past will happen again and again. This is because human nature does not change its filled up with GREED and FEAR, and it is human emotion that always gets in the way of human intelligence. Do not let your emotions get in the way of your trading decisions. If you ask the right question before placing a trade, you stand to gain an edge on winning the emotional battle of trading. It is generally those who are afraid of losing through fear itself who stand to lose because that emotion will interfere with rational, well-thought-out trading plans. Asking yourself the right questions will help you to choose a more appropriate investment vehicle or trading strategy. For example, ask yourself before entering a trade:
What are the time expectations for a result to occur?
Do I have availability of time to see the trade through?
Would short-term day trading or swing trading be possible if I have a regular day time job?
In what time zone do I start work?
In order to know what time demands you need, you should also ask yourself if you have the tolerance for trading a leveraged product and if you have the tolerance for the risks: Should I use a time period stop if the market does not move or react within a specified time period, should I exit the position?
Should I use a conditional stop, such as a “stop close only” order?
Does my order platform take such orders, or do I need to manually watch and then implement such an order? (In intraday trading, the answer is yes, you need to manually watch the close of the time period you are trading in.)
Can I afford to place a stop, say, 10 or 20 percent of my overall ac- count value?
You need to be clear and honest with yourself when answering these evaluation questions. Remind yourself by asking: Why am I trading?
What are my expectations? (I have met too many people that look at trading as an easy and quick way to make money or to replace their current career.)
Based on your trading account size or your risk capital, ask: What returns will I need in order to generate sufficient income?
Is my starting equity size or bank roll inclusive of my living expenses?
Are my expectations on that return realistic on a constant basis?
These questions are important because they will help you to determine which type of investment vehicle and which type of diversified trading strategies you can incorporate into your trading repertoire.
And ultimately you should have a better technical analysis tool, technical analysis tool means it’s a software and will do the math automatically and suggest you the trade decision like current trend, and whether its right time for enter the trade, and whether its BUY or SELL and when to exit the trade. A best technical analysis software will helps you all in this.
WinTrader software is best technical analysis and buy sell signal software using by traders for more than 7 years successfully around the world and helps a trader to enter highly accurate buy sell signals.
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