First, you should have a diary trading plan
You have to write down all your trading plan and it should detail all of your trading decisions, including reasons for initiating a trade, notes concerning the short and medium term trends of the price and relevant economic sector, as well as daily adjustments of exits. A trading diary provides you with a methodical way of maintaining a clear focus. The most basic of these is to ensure you oversee your trading capital. Further, monitoring your performance allows you to review your past trades and learn from your mistakes. How will you go about conducting a review of your trading activities and how often will you do this?
Money management
There is a lot to learn about managing your money in trading.
The most important trading rule is to cut your losses. Determined the maximum percentage of your trading capital you are prepared to commit to cut losees.
What happens if you keep losing money? This question has little to do with trading but rather your own financial situation. Your decision to enter a trade is one of the first decisions you make when trading.
Method
Conceptualise your trading methodology. Are you going to trade more fundamental or speculative stocks? Are you going to trade in only the top 50 stocks from your exchange and look at medium term trends only with a focus in industrial sector stocks?. Are you interested in reversals of short term or medium term trends? Will you trade multiple products? Should you be trading anything other than stocks if you be starting out?
Market analysis
Will you use any form of sector analysis in your method? Will it be the starting point for your trade selection process or will it be a final filter to ensure you don’t enter stocks that belong to poorly performing sectors?
You have to write down all your trading plan and it should detail all of your trading decisions, including reasons for initiating a trade, notes concerning the short and medium term trends of the price and relevant economic sector, as well as daily adjustments of exits. A trading diary provides you with a methodical way of maintaining a clear focus. The most basic of these is to ensure you oversee your trading capital. Further, monitoring your performance allows you to review your past trades and learn from your mistakes. How will you go about conducting a review of your trading activities and how often will you do this?
Money management
There is a lot to learn about managing your money in trading.
The most important trading rule is to cut your losses. Determined the maximum percentage of your trading capital you are prepared to commit to cut losees.
What happens if you keep losing money? This question has little to do with trading but rather your own financial situation. Your decision to enter a trade is one of the first decisions you make when trading.
Method
Conceptualise your trading methodology. Are you going to trade more fundamental or speculative stocks? Are you going to trade in only the top 50 stocks from your exchange and look at medium term trends only with a focus in industrial sector stocks?. Are you interested in reversals of short term or medium term trends? Will you trade multiple products? Should you be trading anything other than stocks if you be starting out?
Market analysis
Will you use any form of sector analysis in your method? Will it be the starting point for your trade selection process or will it be a final filter to ensure you don’t enter stocks that belong to poorly performing sectors?
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