5 Trading Tactics You Need to Know

Before we present you the 5 tactics for better trading read the following scenario and let’s us know in the comment section if it doesn’t sound familiar to you.

It is a slow trading day. Nothing seems to materialize within your trading list. Eventually, you start operating on the voices you hear in your head and compromise your positions. In the end, you take a trade, it fails and you are disappointed in yourself because you were aware that you shouldn’t have traded.

This is part of every trader’s growth. Even the best have to fight these impulses every day.

Meanwhile, other traders experience this behavior as an advantage in reaching their potential.

However, regardless of who you are, I am confident that if you trade you have shared this experience.

Trading tactic # 1: Learn to manage your trader psychology

The problem is not that complex; we trade because we want to make money. Furthermore, we want to gain experience. When our strategies do not signal, often in the days of a slowdown in price action, we believe that it will be impossible to reach our profit share so our mind starts to work against us.

And consequently we have more time to process the inactivity of the market. Many thoughts cross our mind and include ideas such as: “If I don’t take the opportunity now, there might not be another one that good for the rest of the day”.

Yes, this is a natural thought, but I’m sure we can all realize that undertaking an operation based on that thought is not healthy.

Similarly how to trade while thinking:

“This is the closest to an ideal setup I can hope to find, the better I get it now.”

Read Also: What is Day Trading? A Must Read Guide

The unfortunate side of trading is that it is tempting to slip into the adrenaline rush. Trading can become like an addictive substance, sometimes comparable to the problems of gambling, so much so that we don’t know how to sit patiently and wait for the ideal setup. On the contrary, we become restless, hoping that something stimulating will happen and if it does not happen we ruin our positions.

An impressive trait I have seen in the behavior of some fellow international professional traders is the ability to wait, sometimes many hours, for the trading and signals for their strategy to occur.

Trading Tactic 2: Automate your alerts

Let’s face it: one of the components that frustrate waiting for your favorite configurations is looking at the graphs. You create schemes that may look promising but then fail to generate your signals.

Ultimately, staring at the screen leads to wishful thinking as we begin to project our hopes onto graphic patterns and negotiate whatever our eyes see without any sense. In slow markets, we are talking about lower quality trades which is why alerts have been automated in these cases.

Trading Tactic # 4: Go multitasking

This idea is based on the first possible solution. It consists of engaging in responsible and productive multitasking while you wait for everything to be ready and materialize to start the strategy. Whatever your multitasking is, it should take discipline.

Basically we don’t suggest you watch TV while trading, because you will get distracted and make wrong decisions. However, an ideal example of multitasking would be practicing while waiting for your warnings. If you have the proper training equipment, you can conceivably keep an eye on your markets while on the exercise bike.

Read Also: 25+1 Trading Tips You Need to Know

Exercise is a discipline and should not detract from your focus on the market, especially when you have automatic alerts to keep you in tune with your trading system. Exercise helps you combat the stress of the trading day and the disadvantages of the sedentary nature of life as a trader.

The best and the most dangerous trading tactics

Another tactic that helps traders sit idle and wait patiently for a good setup is to extend the scope of the markets and times they observe. First of all, there is a warning that should be articulated: not all traders are ready for that type of stress.

However, I have known other traders who had an exemplary system but, for whatever reason, only held an interest in a single market. What happens is that when their market was slow and producing no signals, they were out of luck, leaving them wanting to chase orders for the rest of the week.

Be careful! If this tactic can allow you to always trade you must have really good knowledge of trading and of the different markets in which you are going to operate. It is not for beginners or for those with an average level and in some cases even for the more “experienced”.

Tactic # 5: Evaluate your base percentage

Perhaps this sentence will not say anything to many, but it is taken from an American film, Snowball. You are interested in remembering and repeating yourself on any trading day a simple important truth and an equally excellent trading tactic: “I don’t need dozens of operations a day, I just need one operation, if it’s the right one”. It starts with small trades at the beginning of the month and even trading with caution ends the month with considerable success.

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Trading tactics: why are they so important?

Each of these is among the best trading tactics that can help any trader overcome the urge to hit random buttons, ruining their positions. However, each one is unique and there may be personal ways of incorporating them that will be more suited to your style. It is important to remember to guard against our impulses. Cognitive psychology informs us that people often act on what are sometimes called “automatic thoughts”.

A crucial aspect is countering negative thoughts by reinforcing healthy ideas these trading tactics help us. It is challenging to conquer the human mind and habit; however, successful long-term trading requires more than a mastery of market analysis: it requires an in-depth analysis of oneself.

Finally, whenever you manage to tackle all the 5 trading tactics, you might want to check the list of the best brokers our community rated. In the list we compiled comprehensive reviews for you to make your check before.

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