The trading process-my opinion

Trading is relatively simple but very hard to master. I have made a brief summary of the process you must follow if you want to be a successful trader.

Process

Your first focus will be to control your psychology by maintaining a low drawdown with the use of risk management, you have to be able to not lose a lot of money entering the markets with no analysis (based on a coin flip, for example).

You will now develop a business plan to control your losses (don't plan for profit, you can't control that). For that, you will distribute the amount you want to risk over a month, and consider your average monthly trade frequency to calculate your risk per trade. This way, no matter what you do, you will never lose a lot of money (remember the coin flip example).

Then you will need to know your limits and understand with what combination of ratios and winning percentage you feel comfortable with (do not chose based on backtest this is a personal parameter)

After that you can figure out the way you want to interpret the markets using a strategy to make entries, exits, price reading, context, risk management, direction etc. decisions. This is the least important parameter, do not spend all your efforts in this section if you don't have mastered the previous ones.

Now that you know that you will only need to be slightly right to earn over a large number of trades you can start trading.

Trading

It may seem like a lot of work but that is not even the hardest part, the difficulty of trading begins when you are done with those essential parameters. Now you need to maintain the right attitude over very long periods of time (psychology), review and correct your trading activity in every single aspect, you MUST have a tangible reason for every decision you make.

When you are no longer comfortable with a certain parameter (e.g. winning percentage, risk/reward, way of entering, use of hedging, etc) you have to change it and adjust every aspect of your trading that affect that change, you will have to repeat this process until you decide to quit trading.

Conclusion

The question is, is it worth it for you? Does your capital allow you to maintain a low drawdown and have results that will compensate your effort? If so, can you handle the trading losses that such a large account can generate?

This is really important, most courses don't teach this way. Everyone is focused on "predicting" the market, doing the best possible analysis, is the first thing you will learn in every trading course but is the least important factor you need to be a successful trader.#OPINIONLEADER# #Tradingpsychology# #ForexTradingStrategies#