Long-term trading is well known to follow a long-term principle of long-term sustainable profitability.
-Formulation of the trading plan:
Usually, mature forex traders will select several familiar trading varieties, focus on the various attributes, etc., and focus on long-term tracking, which is the first step in the formulation of the trading plan. Then, for the selected trading varieties, it is very important to focus on the trading results according to the specific time period of each disk. Writing down a trading strategy is a habit that good traders will develop. Traders can visually review their own trading results, make timely adjustments, avoid mistakes, and optimize their own capabilities. You may want to check out learning the actual style of trading for more.
-Enrichment of knowledge and attention to training:
You need to do your homework before conducting an actual transaction, and spend a certain amount of time each day to study and research industry and parallel industry knowledge points. Study the professional books of experts and scholars, learn the successful experiences and trading methods and concepts of others. Make full use of network resources, often visit vertical forums and communities, and often do a special understanding and communication in the exchange.
Trading risk management:
Before the transaction, it is necessary to specifically measure the status of its own assets and risk tolerance, and pre-set its initial investment funds and the highest bearer money within its own controllable range. There is a standard for the withdrawal of the overall funds in the transaction and the withdrawal of funds for each transaction. Always pay attention to the trend of your own capital curve, you need to stay within the trajectory of a fund growth. To clarify your own risk-to-reward ratio, you must make a profit ratio plan in advance for each transaction.
Long-term trading needs to withstand the pressures of volatility, so a steady state of mind is essential. Respond to the market’s patience and execute orders as planned. There must be clear expectations for the fund management plan, and subjective emotional interference should be eliminated during the period. In the transaction, we should try to evaluate the right or wrong with objective facts, eliminate the emotional transactions, and be driven by the overall market.