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Define Your Trading Goals and Select a Suitable Strategy that fits your personality

Define Your Trading Goals and Select a Suitable Strategy that fits your personality

One of the first things you must do as a trader is to understand what your goals are in trading. Most new forex traders come into the market, thinking that they know, but most really do not have a plan or any concrete goals. Only after you have set some goals for yourself, then you can start looking at various trading methods that will help you achieve these goals. Keep in mind, you must aim to be realistic in your expectations, and ensure that the trading methodology that you choose fits your personality profile.

There are many questions that you must answer for yourself. Do I feel comfortable holding positions overnight? How much risk am I willing to assume for each trade? Am I more comfortable trading with the trend or countertrend? How much time will I have to devote to watching the markets? Will I trade to supplement my current income or do I plan on trading full time?

These are just some of the things that you need to decide on before you start.

Once you have an idea of what your trading goals are and what type of trading will best suit you, then you must work on creating a detailed trading plan that you can use to systemically trade the markets so that the process of trading become effortless.

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