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by Finage at May 25, 2021 6 MIN READ
Forex
Trade! It can be the most exciting and risky of people's daily pursuits. Since humanity existed, many trading methods were developed and many items became the subject of trade. But undoubtedly, one of the most exciting of these has been forex. However, it should not be forgotten that forex contains much higher risks than other trading methods. For this reason, experience is of great importance when doing this job. However, experience alone is not enough. In addition to experience, you must have the necessary systems and set up the necessary infrastructure. This is where the Finage Most Advanced Forex Data API comes up.
The start of a new trade year is an opportunity to set new goals in order to progress and excel. This is your time to push the'reset button' and commit to entirely change your thinking if you struggled in 2020. Whether you're a complete novice to trading or a seasoned pro with over ten years of expertise, it's critical that you put out your objectives. The following points to be considered in the trade will be given briefly.
Dominating trading in 2021.
Traders should concentrate on only one trading method or chart pattern until they have mastered it. At all costs, they must resist the desire to chop and alter trading methods. They should only move on to mastering another price action signal/price action pattern after mastering your chosen trade setup.
Reduce the time you spend trading, and increase the time you learn about trading.
The majority of traders are hooked to their trading displays or phones throughout day and night. Many traders are so fixated on their computers or phones that they spend 14 hours a day staring at them. They, like 95% of the traders reading this lecture, have no control over their emotions. Most of the time, trading is like waiting for paint to dry. Many seasoned traders advise that consumers who come to the market every day seeking for excitement or movement will be disappointed. Some individuals might be surprised to find that some expert traders spend less than one hour every day reviewing charts.
Fix your personal confirmation bias about trades and the market in general.
Traders make blunders because they are conditioned to have a bias regarding everything that occurs or is likely to occur. Financial markets are a human-created game; they are not part of our natural evolution. To play the game, we must first grasp the rules and master our emotions entirely. Don't heed to external forces like news art the next time you're in a trade or about to join one.
Being aware of and avoiding Recency Bias
When a person or a group of individuals assume that what is happening now will continue to happen in the future, this is known as recency bias. A trader may enjoy a three-month winning run, and with each passing day, their confidence grows. As a result, the trader increases risk to unreasonably high levels, gains much too much confidence, and entirely forgets his trading strategy. Don't get carried away with recent success; instead, start over and handle each deal as a new circumstance, adhering to the rules and procedures you've established! You can read a longer version of my article on recency bias here.
Write out your big goals as affirmations and read them once every few days to yourself out loud
Setting goals using affirmations is more complicated than just declaring, "I want to be wealthy." Here are a couple of my previous affirmations to give you an idea of how these phrases should seem on paper. The objectives might be either forward-looking (e.g., "I will") or positive in nature (e.g., "I will"). "I have no way of knowing if a trade setting will win or fail, therefore I must take any transaction that fits my trading plan without doubt."
Slow it all down
Wait patiently for the greatest transactions to come to you. To get a taste of the massive changes and huge risk-reward transactions, you'll need to hold your investments for much longer. Give the market time to breathe and move because it is much slower than you think. A few good deals each month are enough to develop a sizable trading account and lifestyle over time. Another advantage of trading slowly is that you avoid churning your account. Trading during a period of sideways whipsawing tumultuous market activity has a lower likelihood of bleeding your account.
Don’t miss trades
What distinguishes you as a trader is how many huge transactions you miss in a year. The deer in the headlights phenomenon will most likely strike the majority of you. These missed deals will nearly always turn into tremendous winning transactions, and you will nearly always be out of the deal. Nobody has the ability to predict which transactions will be winners and which will be losers.
Exit trades if they are near your target
Traders sometimes overlook profitable deals for no apparent reason. There are a few options for dealing with this issue. Every time, exit the transaction a few pips ahead of your intended profit goal level. Instead of trying for a 2 to 1 or 3 to 1 ratio, try looking for a 1 to 1 ratio. For the next 20 deals, the odds are 5 to 1. Keep an eye on each transaction to observe how far it progressed after you exited, since this will give you an idea of how much you can boost your various goals in the future.
Risk the same amount per trade
Poor capital management, specifically how much they risk every transaction, is the single largest reason traders fail. It's critical that you set a predetermined $ risk every transaction and adhere to it until you get 50 to 100 R in total R profit units over the course of a year. Consider this the next time you decide to go all out and risk more money on the spur of the moment.
Avoid trading markets you shouldn’t be
Due to differences in liquidity and size, not all markets are created equal, and this affects the chances. There's no reason to venture outside of the most liquid and highly monitored markets. These markets are virtually entirely traded by experts, and you should do the same. It is extremely advised that you erase exotic markets from your monitor list to prevent being enticed by them.
Take stock of what you did right and what you did wrong
Recap what you accomplished in the 2020 trading market. What went wrong, and how do you plan to address it in 2021? Are you making emotional decisions based on fear and greed to enter and exit trades? Are you taking on too much risk with each trade? The majority of trading mistakes that result in losses may be prevented by exercising self-control and adhering to your trading strategy and guidelines. That is, Mark Higgs writes, "doing everything like a business."
Devise a plan to improve
Traders must grow in both their trading and their personal lives. They should make a commitment to stop making the same trading blunders over and over again. The only way to earn money trading is to have a trading strategy, create a trading plan, and have the discipline and mental stamina to adhere to it for a long time.
Conclusion
Based on all these explanations, we can say that the financial world has undergone a technological revolution. While these revolutions make things easier for individual and corporate finance players, they also increase competition between players. This competition can be seen both between active players in the financial market and data providers. In this environment with a large number of players and data providers, it is very important to reach accurate and reliable data. For this reason, individuals and institutions should be very careful when choosing their data providers. Careful selection must be made to have a real-time web service or a more regularly updated service. Nowadays to have the easiest and fastest currency , stock and cryptocurrency API with the lowest latency is the key factor in the financial world.
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