Many traders think that they can master any trading setup or trading skill just by sitting at the screen, but overtrading will not lead to mastery, and overtrading causes mental stress.
When you are starting a career, it is best to devote more time to learning.
Let’s start the step-by-step process in simple manner:
5- Steps to Master a Trading Setup:
- Learn the basics and complete process of the trading setup or trading skill
- Build a Professional Trading Plan:
- Flawless Execution
- Maintain Trading Journal
Let’s start with an example:
The eBook “How to Make 70% Returns in the Stock Market in a Month” provides a trading setup. How to read this book to get mastery of the setup contained in it.
Who grabs this opportunity? Only those people who are action takers.
Step-1. Master the basics first, and then go to the trading setup.
You should master technical analysis as you begin your trading or stock market career.
Mainly you need to learn 5- things to cover basics of technical analysis:
a). Identify The Trend
b). To Draw Support and Resistance
c). Volume is the key
In this book, the author covered all kinds of basics that are required for the setup.
After the basics, learn and understand the core concept and complete trading setup. In this book, setup is related to swing trading. That means the trading setup gives low-risk trades and follows the trend as much as possible.
Step-2. Have a proper trading plan:
Step-3. Backtesting: Back Test the trading setup
Backtesting a system provides you with more confidence in the system. The best way to backtest any system is manually one by one chart, which covers all cycles of the market.
Task: Practice any trading system on 40 charts.
Step-4 Flawless Execution: Trade without hesitation
Now you have got complete knowledge about the system and backtested. It’s time to implement that knowledge.
“Financial education + Implementation = Results”
After backtesting the system, Flawless execution: means is acting on an opportunity ( any trade) the moment you see that it’s an opportunity without hesitation.
Step-5 Maintain Trading Journal and Review:
A trading journal is one of the most effective tools for performance management. It is where you record and review daily trades for better output and future reference. A journal can help you track progress as well as study mistakes made when entering or exiting a trade.
Free Template : Trading Journal and Daily affirmations template.
You may have heard a famous quote that says “trading is simple but not easy”. You have to follow one setup until it becomes your second nature. When you get to that stage as a trader, then trading is simple for you. Otherwise, you’ll be a dabbler.
Thank You, I hope you’ve enjoyed this information as much as I loved writing it for you.
And give your valuable feedback about the information in this article and book.