Developing your Trading Process: Difference between revisions

From Volatility.RED
No edit summary
No edit summary
 
(6 intermediate revisions by the same user not shown)
Line 1: Line 1:
Your trading process will be unique to you. However, there are some common these that are universal to all successful traders. In this Wiki, we will explore the trading tools and routines that you will need in order to trade effectively in the markets.




This Wiki is a part of the [[Essential Forex Trading Guide]] series so be sure to check that out!




Line 11: Line 13:
=='''Introduction'''==
=='''Introduction'''==


In this final section, we are going to be putting everything you have learned together into an actionable trading plan that you can use every day in the markets.  The basic principle that you need to always keep in mind is not that you should be following this rigidly step by step but rather that you should be looking to apply these principles over and over again.   
In this Wiki, we are going to put everything you have learned together from the [[Essential Forex Trading Guide]] into an actionable trading plan that you can use every day in the markets.  The basic principle that you need to always keep in mind is that you should be looking to apply these principles over and over again in your trading.   


The main themes of this training are as follows:
The main themes of this [[Essential Forex Trading Guide]] are as follows:


* You need a good understanding of the overall markets and not just how to trade forex specifically.  The different markets that we have talked about are interrelated and are terms that you will come across almost every day in your research.
* You need a good understanding of the overall markets and not just how to trade [[Forex]] specifically.  The different markets that we have talked about are interrelated and are terms that you will come across almost every day in your research.
* Fundamental analysis should be the foundation of every single trade you take.  The key to fundamentals is understanding the reasons behind each price move in the markets.
* [[Fundamental_Analysis | Fundamental][ and [[Sentiment_Analysis | sentiment analysis]] should be the foundation of every single trade you take.  The key to [[Fundamental_Analysis | fundamentals]] and [[Sentiment_Analysis | sentiment]] is understanding the reasons behind each price move in the markets.
* Risk management should be incorporated into every single element of your trading business so that you have multiple defenses protecting you from losses at all times.   
* [[Risk Management]] should be incorporated into every single element of your trading business so that you have multiple [[Risk_Management#4_Risk_Management_Defences | risk defences]] protecting you from losses at all times.   
* Technical analysis should only be used as a simple method of visualizing a trade to give it structure.  All technical concepts are more or less the same when it comes to their effectiveness.
* [[Technical Analysis]] should only be used as a simple method of visualizing a trade to give it structure.  All [[Technical_Analysis | technical concepts]] are more or less the same when it comes to their effectiveness.
* Trading psychology should be your number one focus once you have the basic 4 elements of professional FX trading understood and the skillsets learned.  Working on your inner game is the key to consistent profitability.  The ultimate goal for you is to be trading in the zone at all times.   
* [[Trading psychology]] should be your number one focus once you have the 6 [[Essential_Forex_Trading_Guide#The_6_Essential_Elements_of_Forex_Trading | essential elements of Forex trading]] understood and the skillsets learned.  Working on your inner game is the key to consistent profitability.  The ultimate goal for you is to be trading in the zone at all times.   




Everything in this course is more than enough knowledge for you to create a trading plan that you can use to start developing and practicing your skills further.  Remember, just like buying the best golf clubs will not make you good at golf, consistently hunting for more and more knowledge will not make you a better trader.  You need knowledge first, practice and skill building second, followed by working on your inner game from that point on.   
Everything in the [[Essential Forex Trading Guide]] is more than enough knowledge for you to create a trading plan that you can use to start developing and practicing your skills further.  Remember, just like buying the best golf clubs will not make you good at golf, consistently hunting for more and more knowledge will not make you a better trader.  You need the knowledge first, practice and skill building second, followed by working on your inner game from that point on.   


With all this in mind it’s time to create the trading plan so that you can move on from the knowledge building stage and on to the skill building stage.  There are several things that we will be focussing on in this section but the main goal will be to build up a routine that you can follow every day no matter what the market conditions may be.   
With all this in mind, it’s time to create a trading plan so that you can move on from the knowledge-building stage and on to the skill-building stage.  There are several things that we will be focussing on in this Wiki on developing your trading process but the main goal will be to build up a routine that you can follow every day no matter what the market conditions may be.   


Your routine should be comprised of 4 distinct elements:
Your routine should be comprised of 4 distinct elements:


# Knowledge phase
# [[Trading_Routine#Knowledge_Phase | Knowledge phase]]
# Analysis phase
# [[Trading_Routine#Analysis_Phase | Analysis phase]]
# Execution phase
# [[Trading_Routine#Execution_Phase | Execution phase]]
# Review phase
# [[Trading_Routine#Review_Phase | Review phase]]




To make this clear and simple we will go through each one of these phases and give you the tools you will need for each one.  At the end of this section we will look at the routine of a successful professional trader along with a selection of trading strategies that we use that you can also use for yourself depending on your trading style and preferences.
Before we get into these 4 phases we are going to get you up to speed on the trading tools you need in order to be able to actually sit at your trading desk and plan your trades.


Finally, we will provide some print outs that you can have physically on your desk each day to make sure that you are constantly following your routine and improving your overall performance rather than just going around in circles.  These will help you stay on track and also provide a very useful log that you can look back over as your trading career progresses.  This will also help when you are working on your psychology and trying to improve your weaknesses as a trader. 


Before we get into these 4 phases what we are going to do now is get you up to speed on everything you need in order to be able to actually sit at your desk and plan your trades.
=='''[[Trading Tools]]'''==


As a trader, there are certain tools that you will need to stay in the flow of market-moving information. Fundamental and sentiment information is what drives price movement and volatility. In the following Wiki, we will take a look at the [[Trading Tools]] that will help you interpret this market-moving information so that you make good trading decisions for better profitability. These resources include:


=='''[[Trading Tools]]'''==
* [[Trading_Tools#Research_Articles | Research Articles]]
* [[Trading_Tools#News_Feeds | News Feeds]]
* [[Trading_Tools#Economic_Calendars | Economic Calendars]]
* [[Trading_Tools#Charting_Software | Charting Software]]


In the following Wiki on [[Trading Tools]] we are going to take a look at resources such as [https://volatility.red/Trading_Tools#Research_Articles Research Articles], [https://volatility.red/Trading_Tools#News_Feeds News Feeds], [https://volatility.red/Trading_Tools#Economic_Calendars Economic Calendars] and [https://volatility.red/Trading_Tools#Charting_Software Charting Software] that you can use to guide in developing your trading process and daily trading routine.


You can access the main Wiki on [[Trading Tools]] [https://volatility.red/Trading_Tools HERE].
You can access the main Wiki on [[Trading Tools]] [[Trading_Tools | HERE]].




Line 54: Line 58:
The 4 phases that every trader should go through are:  
The 4 phases that every trader should go through are:  


# [https://volatility.red/Trading_Routine#Knowledge_Phase Knowledge phase]
# [[Trading_Routine#Knowledge_Phase | Knowledge phase]]
# [https://volatility.red/Trading_Routine#Analysis_Phase Analysis phase]
# [[Trading_Routine#Analysis_Phase | Analysis phase]]
# [https://volatility.red/Trading_Routine#Execution_Phase Execution phase]
# [[Trading_Routine#Execution_Phase | Execution phase]]
# [https://volatility.red/Trading_Routine#Review_Phase Review phase]
# [[Trading_Routine#Review_Phase | Review phase]]
 
 
After this, we will take a look at what a typical [[Trading_Routine#Daily_Routine | daily routine]] looks like.
 
You can access the main Wiki on [[Trading Routine]] [[Trading_Routine | HERE]].
 


==Related Wikis==


After this, we will take a look at what a typical [https://volatility.red/Trading_Routine#Daily_Routine daily routine] looks like.
Readers of '''Developing your Trading Process''' also viewed:


You can access the main Wiki on [[Trading Routine]] [https://volatility.red/Trading_Routine HERE].
* [[Trading Tools]]
* [[Trading Routine]]
* [[Risk Management]]
* [[Trading]]
* [[Risk]]

Latest revision as of 16:47, 17 October 2023

Your trading process will be unique to you. However, there are some common these that are universal to all successful traders. In this Wiki, we will explore the trading tools and routines that you will need in order to trade effectively in the markets.


This Wiki is a part of the Essential Forex Trading Guide series so be sure to check that out!



Developing your Trading Process

Introduction

In this Wiki, we are going to put everything you have learned together from the Essential Forex Trading Guide into an actionable trading plan that you can use every day in the markets. The basic principle that you need to always keep in mind is that you should be looking to apply these principles over and over again in your trading.

The main themes of this Essential Forex Trading Guide are as follows:

  • You need a good understanding of the overall markets and not just how to trade Forex specifically. The different markets that we have talked about are interrelated and are terms that you will come across almost every day in your research.
  • [[Fundamental_Analysis | Fundamental][ and sentiment analysis should be the foundation of every single trade you take. The key to fundamentals and sentiment is understanding the reasons behind each price move in the markets.
  • Risk Management should be incorporated into every single element of your trading business so that you have multiple risk defences protecting you from losses at all times.
  • Technical Analysis should only be used as a simple method of visualizing a trade to give it structure. All technical concepts are more or less the same when it comes to their effectiveness.
  • Trading psychology should be your number one focus once you have the 6 essential elements of Forex trading understood and the skillsets learned. Working on your inner game is the key to consistent profitability. The ultimate goal for you is to be trading in the zone at all times.


Everything in the Essential Forex Trading Guide is more than enough knowledge for you to create a trading plan that you can use to start developing and practicing your skills further. Remember, just like buying the best golf clubs will not make you good at golf, consistently hunting for more and more knowledge will not make you a better trader. You need the knowledge first, practice and skill building second, followed by working on your inner game from that point on.

With all this in mind, it’s time to create a trading plan so that you can move on from the knowledge-building stage and on to the skill-building stage. There are several things that we will be focussing on in this Wiki on developing your trading process but the main goal will be to build up a routine that you can follow every day no matter what the market conditions may be.

Your routine should be comprised of 4 distinct elements:

  1. Knowledge phase
  2. Analysis phase
  3. Execution phase
  4. Review phase


Before we get into these 4 phases we are going to get you up to speed on the trading tools you need in order to be able to actually sit at your trading desk and plan your trades.


Trading Tools

As a trader, there are certain tools that you will need to stay in the flow of market-moving information. Fundamental and sentiment information is what drives price movement and volatility. In the following Wiki, we will take a look at the Trading Tools that will help you interpret this market-moving information so that you make good trading decisions for better profitability. These resources include:


You can access the main Wiki on Trading Tools HERE.


Trading Routine

In the following Wiki on Trading Routine we are going to break down a daily trading routine into 4 phases. Each of these phases incorporates the tools and the flow that we have covered in the Trading Tools Wiki.

The 4 phases that every trader should go through are:

  1. Knowledge phase
  2. Analysis phase
  3. Execution phase
  4. Review phase


After this, we will take a look at what a typical daily routine looks like.

You can access the main Wiki on Trading Routine HERE.


Related Wikis

Readers of Developing your Trading Process also viewed:

Retrieved from "https://volatility.red/index.php?title=Developing_your_Trading_Process&oldid=1516"
Last modified
This page was last edited on 17 October 2023, at 16:47.
Copyright
All material appearing on and within the Volatility.RED website (“content”) is protected by copyright under U.S. and Canadian Copyright laws and is the property of Volatility.RED, FXGears.com, or the party credited as the provider of the content.

'''You may not copy, reproduce, distribute, publish, display, perform, modify, create derivative works, transmit, or in any way exploit any such content, nor may you distribute any part of this content over any network, including a local area network, sell or offer it for sale, or use such content to construct any kind of database.'''

You may not alter or remove any copyright or other notice from copies of the content on Volatility.RED's website. Copying or storing any content except as provided above is expressly prohibited without prior written permission.

Copyright 2024, Volatility.RED, an FXGears.com project.