Today we are going to talk about a very important subject, manual trading. We will review together what are the major points to know before jumping into manual trading. Those are very important steps if you want to succeed in your trading journey!
Risk and money management
Risk management and money management are crucial to trading. Your balance is your working capital, so it is important to protect it first and then to make it grow. The trader must ask himself these essential questions: How much money can I risk on this trade? Where should I place my stop? What position size can I trade? What leverage can I use? This trader limits the risk by using a trailing stop.
Technical analysis helps the trader make decisions: What is the current trend or the main trend? Should I take a buy or sell position? Which indicators will give which signals? What charts and chart patterns are there? In this area you will find a lot of information, especially the description of indicators, chartist formations and candlesticks. Some tools like Tradingview can help to scan the markets, thus helping the trader find signals quickly and efficiently.
Develop a trading strategy
A trader should always have one or more trading strategies or setups in his arsenal. Simply put, a strategy includes an entry point and an exit point, as well as information about the size of the position. Again, there are some key questions to ask: What is a good strategy? Can I perform a back test? Is the back test reliable? To which instruments can I apply this strategy? In this section, we offer you known strategies with their parameters and configurations. These can be used as a starting point to develop your own trading strategies.
Using a trading platform
For your trading training, you will need an efficient exchange with low transaction fees such as Binance or Kucoin. This is why the choice of the exchange is one of the most important tools. Therefore, it is necessary to learn about the functions and possibilities of the platform and to test it, in order to master it completely.
The journey of the trader's apprentice is a long and winding road, but if you put in the effort and discipline to keep going, success will come.
The most important point will remain the management of your emotions, because it is not enough to have a well-tested strategy, you must also know how to implement it without doubting even after 5 losses in a row!