Have you developed one plan that you use in every trade? If the answer is yes, you need to read this article. Most people do not understand the importance of revising their strategy. A method is not complete until it goes through a process of trial and error. Most of the plans were developed this way. It takes time but is more effective, increase the chance of success and works perfectly with the market. Many traders have not imagined that a strategy also needs to be revised weekly. There are certain reasons that can affect performance. An old technique can become obsolete if it is not updated with time. Monitoring the strategy will keep the investment safe in Forex.
The market changes every moment
The first and main reason for this is the continuous change in nature. In this sector, the only thing that is promised is change. A person can never expect what will come in the future. Most investors prepare for volatility when a perfectly profitable trend appears. When they expect a profitable trend, a risky pattern comes that takes away all the money. The professionals know the risks and always try to keep the planning ahead of the volatility. This is when the weekly revise comes into use. Though the trends are changing at every moment, it is not possible to cope with the smaller changes. It is profitable if we plan for the big movements that are going to come. Most trends have a new pattern that comes weekly. When we revise the schedule of trades every week, it will keep us informed of the happenings but also not become a burden. This sector is a marathon. Do not try to win one run. Let the volatility play out the investment. If you stay still while the finance is running, the chance of victory gets slimmer with every moment.
Maintain a trading journal
The more you will trade, the better you will become at the currency trading business. As a retail trader, you need to understand the fact, losing traders are just a part of your trading profession. The elite class traders prefer CFD trading with Saxo since it offers the professional trading environment. Write down the details of each trade like the experts of Hong Kong and so that you can analyze the past trade data during the weekend. Always try to learn new things from your losing trades.
To keep the strategy relevant
A short-term plan cannot be used by people who are using long-term plans. If the analysis is performed every week on these plans, there is no way to lag behind the rice movement. If the pattern looks bearish, plan a bearish strategy. If the market indicates it can become bullish, use the bullish strategy. The profit does not come from the performance, but how relevantly the method is used with the adding. To get apples, we need to sow the seeds of apples. There is a story that will help you to understand the importance of keeping the plan relevant. A woodcutter used to cut down trees 10 years ago, can still cut the same amount of would today. Experienced have increased but the numbers have not, while anew woodcutter who takes 10 minutes break to sharpen the ax cut more trees than the exercised woodcutter. This story tells us we need to always keep up the edge to achieve the goal. The time spent is not wasted, but rather is an investment for an expected performance.
To perform necessary changes
The reasons professionals have consistent wins while the novice has up and downs are simple, the first group always keep the strategy updated. They perform weekly analyses, bring changes that are important and plan the trade. A novice will only use one technique that was developed months ago. After developing, this technique is getting used but have not received any changes.