Today I'm going to share some plans that will get me to be a better trader. You can tweak the plans to suit your style as successful traders have their own style of trading.
1. Trade The Major Markets
One of the plan is to only concentrate the major markets for Forex. I like to trade just a handful of major forex pairs and Indexes. Most of the pairs include EURUSD, GBPUSD, AUDUSD, EURJPY, AUDJPY, GBPJPY, EURGBP, EURAUD, USDCAD, USDCHF and XAUUSD. For Indexes I like to trade DJ30, ITALY40, DAX, HSI and NIKKEI. Having just these major pairs are already enough opportunities for you to analyse and trade. You do not need to trade 20 - 30 pairs (that's crazy!) as many of exotic pairs are just too illiquid for trading. Stick to simple.
2. Demo Trade
Some traders just jumped into action without demo trading. That's as good as gambling and throwing money into the drain. One action a trader should always do is to demo trade, demo trade, demo trade. Demo trading is a good way to test out your trading strategy and gain confidence in trading skills. Till now I still demo trade on the side to tweak my strategy. Nowadays brokers are getting friendlier and are offering demo trading on their platforms. Some of my favourite platforms for demo trading are CMC Markets and Oanda. Oanda also offers MetaTrader platform which you can install into your computer.
3. Clean Up Your Chart
Having a clean chart allows better clarity in your analysis and planning trading strategy. Check out my article on trading with cleaner charts and also learn how to draw support and resistance.
These are a few technical tips to start your path to better trading. I'll be coming with Part 2 of this article soon. So keep checking for more updates!
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