Trading can be a simple activity with all the knowledge and experience that you gain as you move forward.
However, by no ways and means, you must consider it an easy task and the difficulty levels will raise as you complicate things.
When you complicate the process, you only create more confusion and chaos in the system.
So, any step taken towards making the trading process simpler must work towards reducing the confusion.
Going with the slogan, ‘the simpler the better’, we present to you three simple secrets to success in trading.
1. Right Direction
Follow the rule of direction religiously.
Buy only when you notice that the market is showing an uptrend.
However, when a downtrend is observed, choose to sell.
This rule is going to make all the money you are looking for.
2. Right Decision
Trading is all about decision-making.
Moreover, the timing of decisions is just as crucial to your success as a trader.
3. Right Market
None of your efforts will yield results for you if you are trading in the wrong market.
Always choose a market that is trending.
Our strategy is a trend-following strategy and you will be able to make money only if you trade in a trending market.
Regardless of whether a market is showing an uptrend or a downtrend, the fact that it is trending is enough a reason for you to choose it.
This decision can increase your chances of success significantly.
The secrets mentioned in this chapter are universal and regardless of the market that you are trading in, you can rest assured that they apply to you.
Moreover, they are just as applicable to any timeframe.
This is what makes them excessively powerful.
Taking lead from the secrets, we come to the action steps that you need to take, which are as follows:
- Learn to identify if the market is going up or down. Are you able to perform this activity efficiently and effectively in the real market scenario?
- Learn to identify the right time to exit a market. Are you able to identify exit points?
- Learn to identify if a market is the right one for you.
If you have already started with real world trading attempt to answer the following questions:
- Are you able to perform this activity efficiently and effectively in the real market scenario?
- Are you able to identify the right exit points?
- Are you certain that your trading market is the right market for you?
Just keep these three points in mind and without further complicating the process, stick with the basics.
Also, to reach a speed of 80 mph, you need to hit 10 mph.