A useful guide for the trader's and what i like about the thread was link attached to each step governing the possible information about what you have explained.The main problem is traders tend to ignore all such factors and keep on with the same old rules but they need to know trading is complex task and if they want to survive in the market then there are lot of determining factors for the same.
I would like to add on one point which have helped me personally also and want to tell others under this helpful thread with one more categorisation:
Don't invest in shitcoins: This is one of the first mistake the newbie or say some experienced traders also make that they invest in some shitcoins in the hype under the influence of some social celebrity and they blindly follow some trading signals.The fund invested in these shitcoins or memecoins are not going to give any return in long run and they are mostly centralised owned by whales and when they dump at peak the market will crash and so your funds are lost.If you are new and want safe investment and can hold long go for bitcoin only and that's what will guarantee return.The scam pumps high even so be safe from them.
Rest follow his points.
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Is there a formula that a person can use as a guide to create his own? What are the specific parameters that we must consider when developing a strategy?
100% allocation of ones self.20% confidence
30% basic knowledge
20% discipline
15% charisma
15% Patience.
Strategy is a broad term in which user can keep up on others or can rely on his own style. Trading is very risky so we must always depend on such parameters like our budget, the highest possible money we can risk, and most importantly is our ability to adapt on different market trend.
I would like to have an addition in this list: "inform yourself about local laws / regulations before starting to trade".
If you're unlucky, you'll either going to be paying crazy high taxes on any profit and some countries also may require a history of all trades end of year, so make sure to have a way to export and save them all regularly. These are just 2 examples of stuff to check with local law before starting to trade. It may even be forbidden in your country; it depends a lot on where one lives.
If you're unlucky, you'll either going to be paying crazy high taxes on any profit and some countries also may require a history of all trades end of year, so make sure to have a way to export and save them all regularly. These are just 2 examples of stuff to check with local law before starting to trade. It may even be forbidden in your country; it depends a lot on where one lives.
The best and most working strategy is the one that you created. Because it will contain exactly your parameters, such as psychology, market vision, comfortable trading and other aspects.
Thanks for the read @Ratimov. Just an honest question, though.How exactly do we develop an effective trading strategy? I mean, I am aware that many people suggest newbie traders to develop their own trading strategy that they can use based on their lifestyle, but I have never heard or read such guides on how to develop a strategy.
Is there a formula that a person can use as a guide to create his own? What are the specific parameters that we must consider when developing a strategy?
For those who want to start trading, but do not know where exactly to start, I have prepared this step-by-step guide with the information that I have collected over my 4 years of trading practice. At one time (2017), when I started to get acquainted with the world of trading, I did not know where to start and where to find the information I needed. I had to collect information bit by bit all over the Internet. If then, in 2017, I came across a similar step-by-step guide, where everything is put together, I would be incredibly happy and it would save me a lot of time.
It's very complete, but since I've been trading since 2015, I just found out about this, it turns out that there are many helpful articles to learn trading. Broadly speaking, I learned live trading, no demo account. But I learned from my trading mistakes. I always remember that. The most difficult thing so far is managing emotions. Greed, fear of missing the moment is still in me. But I keep trying to control my emotions and it's still trying to understand. Because I think the most difficult level of trading is controlling emotions.
Even though my trading results can exceed the initial capital, and now I use the profit trading money, I am still curious about how to manage emotion. Because some times I often can not control it.
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