The process of maneuvering around the financial markets and trading profitably has become an even more difficult task. We must be prepared and equipped with the appropriate tools in order to trade successfully.
The first and most important weapon to obtain is knowledge. As the saying goes, “knowledge is power,” and this is what will initially separate you from the majority of people who try their hand trading the markets. Secondly, proper money management is extremely important and should be taken very seriously in order to survive and play the game for many years. Lastly, preparation before the trading day is something that is mandatory in order to give yourself an edge against those you are competing against. This last tool, preparation, refers to having a trading game plan and knowing what you are going to do given certain movements in the market.
At first glance, preparation may not seem pertinent to succeeding as a trader, but have you ever placed a trade and then come to realize that you did the wrong thing? Or how about this one? The
market makes a huge move in one direction or the other and you are stuck wondering how you should adjust your trade. Instead of reacting immediately, you stop to think and before you know it, the opportunity has passed you by. These are things that should not happen to you and the proper preparation will keep you out of these costly and frustrating situations.
