This FCPO-trading article is quite long, that I took the initiative to impart them into a few chapters, follow this article till the end to become a professional FCPO trader!
There are differences between a professional trader and an amateur with no experience on how they THINK and TAKE ACTION.
What are the differences?
The main difference is how the market data is extracted and evaluated. How accurate our analysis is, depends on the way we think. i.e our mental ability and belief.
What is the way of thinking and belief that leads us to become a professional trader?
1. FCPO trading is not complicated! But easy?
The first step is to have a NAKED CHART. Delete all indicators!
I always wonder why this inexperienced trader uses indicators excessively or using robot trading, which will hinder them from knowing the very basics knowledge of FCPO trading.
This practice (using indicators) will surely not helping you being profitable. Too many indicators will make you blind of the best analysis. This will cause you not be able to see the market structure.
To succeed in FCPO trading, you need to be disciplined. But this does not mean that we should make it too complicated with the use of excessive indicators or robot trading.
The best tool to succeed in FCPO is a moderate graphics i.e candlestick (naked chart) with our mind analyzing the market and the traders.
2. What is strategy in FCPO Trading?
2.1. Understanding the fundamental. (Soybean Oil, Ringgit, MPOB data)
These data above play a pcart
in FCPO market. This could help us give some idea about the movement either bullish/bearish.
However, please be noted that FCPO market react due to COLLECTION OF DATA, not just 1 data. Therefore, it is still important for us to understand FCPO market through naked chart analysis.
Only by naked chart analysis, we could understand the FCPO movement. Big players in FCPO will analyse the fundamental and this is translated in the naked chart analysis.
2.2. Using different timeframe (TF)
Based on experiences, a professional trader acknowledges that there are different types of trader at different timeframe.
Those who think like a professional trader, must be aware of and focus the antics and behavior of other traders through naked chart graphic. Then, they will be able to summarise the market trend as a basis of entering the market.
If you want to become an FCPO daytrader, open and close your position within the same day, higher TF should be applied such as TF Daily, TF60 and TF5.
Don’t repeat the same mistakes done by other traders that only has limited analysis of SINGLE TF.
As a matter of fact, all TFs are important from the perspectives of a professional trader. We could gain valuable information about how other traders take their position in the market, where possibly could their stoploss (SL) be and where do they take profit.
Ask yourself, at which level at different TFs functions as support and resistance?
3. Keep your emotions under control
In our previous articles, we used to discuss about the significance of emotions and psychology in trading. The fact is, since the beginning of trading, many amateur inexperienced FCPO traders do the same mistakes.
It is true that no one could put down the greed and fear emotions. As a trader, we must ensure that our emotions are under control.
We should have a trading plan for FCPO.
3.1. Accurate Money management for FCPO trading.
Most traders put a high risk for their margin of transaction. This is fatal to their account.
A professional trader has a disciplined money management routine as per below:
1. Investing not more than XX% from trading account per transaction
2. Loss per day should not exceed XX%
3. XX% from profits are taken from trading account per month.
4. So on.
3.2. Limit your no of transaction
Many inexperienced traders do not limit their transaction and go for full-fledged margins available that is fatal and hurt their account a lot.
Our target is to profit for a long term period of time
Therefore, for this reason, we need to be on an open position if by chance, winning rate is high as long as our analysis go in line with market movement. To be able to analyse correctly, we need a trading plan that has our own strategies and principles and EXPERIENCE.
Unfortunately, many traders ignore the trading plan and hastily analyse market condition and enter the market based on experience alone.
The more active someone is and see the market professionally, the higher chance the winning rate is.
Having a knowledge by theory alone is not enough to be an expert in trading.
4. Do your trading document and journal
All tips and recommendations in this article is of no use if you fail to follow our guidance.
So, you need to record all your actions if you want to develop a professional-like thinking and trade FCPO.
That records are your FCPO TRADING PLAN AND JOURNAL. For this, you could learn at the next article Further FCPO Trading.
FCPO Trading Journal as a daily book for trader
Very few number of traders are disciplined enough to produce long-term trading plan.
Discipline could be learnt
If we want to achieve our target in FCPO Trading, our belief and self-confidence level will increase as well. At this level, we will document our action and our trading system that we have used until we could see a positive trading transaction.
Therefore, we could detect which trading system that has been working for us and we should appreciate that trading system and document it properly.
In addition to that, we should also document graphic screenshots with multiple TF so that when you see the very same chance, you will REACT ACCORDINGLY.
Start doing you trading journal now!
This will help you being responsible of your own action and so that you could learn from your mistakes. Only by having a trading journal, you will have confidende to execute your trading plan because you have already documented them properly in your journal.
5. Expand your trading routine.
Without having a clear trading plan, this kind of trader will spend more time on the screen to enter the market and do the market analysis.
Make it a habit for you to read back your trading journal every day, so that you could remember all your principles and trading system that you have arranged and make you profitable.
Take a look at all these queries
- Is market on trend or sideways?
- What trading setup that the market is offering?
- Is your trading transaction has the potential to profits or loss?
All these questions should be asked to yourself and you should think before you execute any positions in the market.
6. Do a strategic FCPO Trading that is profitable
Before you do your trading plan, you should be an expert and master the trading strategy that you’re going to use.
Think of this!
If you don’t analyse what is happening in the market and adjust our thinking to that of market movement, applying our trading strategy or system moderately, you will not be profitable from the market and become a professional in FCPO trading.
That’s all our 6 tips on how to think like a professional trader. Never be bored and give up from learning FCPO trading, because for every big leap, it all started with a small step! And don’t forget about the psychology and keep your emotions under control, then only you will succeed in FCPO trading. Happy learning!