Trading in the various markets is like running a business - the ideal goal is to earn revenue, and as with any business, the ideal goal is to ensure that revenue exceeds costs. To achieve long-term success, it is vital that you develop good habits from the start.
These good habits help achieve two goals:
1.Achieve greater success in any specific phase
2.Attracting lessons from mistakes to increase the success rate of trading
The following habits will help you achieve your trading goals:
1.Define and quantify the exit strategy before opening a position, in particular, define and quantify the downside risk
2.Plan the size of your position: each order should be sized appropriately for the amount of your trading account in advance, which will help you control and quantify your risk
3.Do not open positions in a hurry
4.Trade in line with the current trend, choose the route of least resistance, and try to follow the trend according to the market
5.Construct a detailed strategy for entry and exit
6.Be careful to guard against downside risks and be prepared to take decisive action when necessary to control them
7.Trade sensibly and not impulsively
8.Avoid the time period around scheduled news events: market movements can become more volatile around news events, and prices can move dramatically in a short period of time, often preventing ordinary traders from participating in these movements