Trade Your Plan and Plan Your Trade in the Stock Market Trading System


Trade your plan, plan your trade is one of the common advices in the field of trading and it is not just a funny remark that traders express. Do you know how popular trend followers and expert traders like Jerry Parker, John Henry and Bill Dunn do it? Exactly. In the stock market trading system, they trade their plans and plan their trades. Here are some of the common tips on how they do it in their style.

Importance of stock market trading education

Would you ride your car and not know where you are heading? Probably not. A trader without a concrete trading plan is similar to a driver without the knowledge of where they will be going. If you have no direction or any idea where you are heading, how will you get there? Trading education greatly encourages traders to know as much as they can on the stock market before they proceed with their trading plan.

What makes up the stock market trading activity?

A lot of traders remind themselves to plan their trade but forget to do it. They do not see what an important stock market trading activity this is. When things go wrong, they get into trouble and watch their accounts blow up. Thus, the discipline and patience of the trader are in question. The discipline of making a trading plan is in question. Successful traders will tell you they constantly make trading plans and tell you that it is important.

Stock market trading explained

They should always keep their plan simple. There is a lot of information on the internet and there are also numerous trading tips and strategies under stock market trading explained. A lot of experts claim that traders use this and that. However, it is of vital importance that these tips simple and easily understood by everyone. How can a person plan their trading business, if they are unable to understand the different principles under this field?

Change. Nothing is permanent in this world but change. It may sound very ironic but it is true that change is one of the prime characteristics of the trading market. It is unpredictable and constantly changing. Nonetheless, the trading system still encourages the traders to have a plan that can work despite the changes.

If you plan to be a successful trader, you must make a solid trading plan and stick to it in managing your trades as well as your trading business in general. Stock market trading education can give traders the 411 they need about this.

How to Deal With Unpredictable Nature of Stock Market Trading

Stock market trading is speculative and so it is unpredictable. You ought to know what it takes to invest in a stock trading. Investors whoa re least informed or less informed about the stocks market behavior have little idea what risk they are venturing until they lose most part of their income. There are certain indispensable ways that you should follow when you make the investment and trade out there in the stocks. The first effective way in which you judge the unpredictable nature of stock market trading is to go for the options. Experienced investors and stock market experts clearly point out that options trading is the way to minimize the risks involved in stocks trading.

The very concept and practice of options trading if mastered by a new or even an experienced trader will give him the advantage. Options trading is versatile in nature and the trader can effectively use the versatility of options trading to earn rich benefits from stock marketing trading. Once the trader is pretty comfortable with options trading, he or she can easily adapt to the market behavior in a comfortable way, and can invest in the stocks trading with all the knowledge and confidence.

In addition, a stock trader who is aware about the options trading can easily manage the unpredictable movements of short-term and long-term averages as well as the prices of the stocks as represented in the Moving Average Convergence and the Divergence. You can also deal with the unpredictable nature of stock market trading if you educate yourself about the trends and other technical aspects involved in trading. If the trader educated himself completely, then he or she can invest in the stock trading with completely fresh zeal, and the best part is trader knows how to calculate the trends, which is very essential.

If you make use of invest trading program then nothing like. Keep in your mind that you have a user-friendly and effective program working beside you that can perform all the technical analysis accurately and with correct precision.

By its very nature, the stock market trading will remain unpredictable and trader has to play with the unpredicted nature of the stocks. And this can only happen if stock trader is experienced and aware about all the subtleties involved out there. If you are really looking for the stock market trading, the best thing that you should be doing in the very first go is to go ahead and study all the aspects of stocks. Closely watch and analyze which type of stock trades well and at what time.

If you are trading in the stock market do not trade with your heart, but trade suing your brain and circumspect. Keep in mind that stock trading is a business oriented activity, and every business is unpredictable. And last of all follow sound trading strategies as these will help you in gaining the best returns for ever in your life. Of course, you will automatically be minimizing the risks involved in the trading.

Forex Market – Trading With Conviction

Trading in foreign currency has been a viable business option for decades, almost since the emergence of cross boarder trade and currency exchange markets. The real fact is that this market was restricted from most of the wider public as brokers ran the floor while financial institutions were the main traders.

So far, the market is still being dominated by the large Investment banks and related institutions. The introduction of online trading interface that are easy to use and accessible to the wider public has brought millions across the world into the Foreign Exchange (FOREX) trading platform.

With the varying background of traders, ranging from Bankers and investment Managers handling portfolios in the Millions of dollars, to the stay at home mum trying to make an extra income from the financial speculative market. The new dynamic floor has brought the “Yes, I can!” Feeling of attainability.

In the developing south, millions who feel denied from the reward of their full potential have started trooping into the FOREX market. All around me I see consultancies and workshops offering training and mentorship for the bold hearted willing to stake their bet on a successful trading career. They make promises of as much as a 1000% margin in the first month of trading and even point out one or two clients ready to testify of the fortune they made trading within a relatively short period.

The crux of this write-up is focused towards the trading pattern beginners in the FOREX trade adopt without much understanding of the market environment they operate. A lot of the trading content focuses on:

• Use of Fundamentals (trading strategy based on latest news update relevant to market trade).
• Understanding the Technical (which deals with using statistical projections to predict trend patterns).

The fact worth mentioning is that majority of traders in developing economies have relatively small investments ranging from a few hundred dollars to a couple of thousands. Their tutoring and online trading platform have induced into their pattern of trading a predictable decision trend. This poses a high vulnerability, and I will state why.

The large banks, assets/portfolio managers and volume investors who operate in this same market have had track records spanning years or decades, or have so much invested in data collection and analysis on a scale that would rate to the efficiency of state intelligence gathering agencies. These traders work with advance customized software programs that are linked to the trading floors providing on-time indicators of margin prospects that can be harness within a slight shift in the market trend. They also have some of the fastest trading servers that give them an edge of entering a trade before anyone else. With their wealth of experience, expertise and assets, it is difficult they make the same mistake twice.

If you are a small time trader basing your trade on the news you receive from your bulletin, know this; that news may be stale by the time you get access to it. The market movers may have gotten wind of those information hours or even a few seconds before you, and that is more than enough to outflank you in any major trade.

Or imagine living in a nation with a relatively slow internet connection, consider the seconds lost while your trade order is being processed and what others across the world may have achieved in that window.

I do come across a lot of guys frustrated about their trading profile, they feel they are chasing shadows and feel more like being at the bottom of the food chain, while they watch some reap good money from their trade. Now if those making money are not just lucky as some are; using a gambler’s probability, then they are doing something right. What is it?

Trading FOREX involves developing a trading pattern that works for you, and you have to be bold enough to create one. If you chose scalping, you must be sure you try as many strategies as possible and stick to the one that works, if you decide to sit through a trade, make sure that your risk exposure does not take you beyond a given percentage. In all cases use a stop loss and take profit as you may not be able to guarantee your server connection or may fall victim to high shifts. The fact is you must work on you psyche to take losses and close trade, take a break, then go back in when different conditions are at play. Do not believe that the market will swing back and clear your losses even if it once worked for you. Remember the law of probability and be discipline.

But please if you are trading small, don’t stick to the fundamental as your main determinant.

Olukunle O. Ogundiran