Do you go to a math competition and win medals without doing anything? That is utterly impossible. You have to study harder than the rest of your schoolmates. This is just the same when trading CFDs. You have to go through strict preparation before each trading day.
Considering that real money is on the line makes it more nerve-wracking! In your mind, you are determined to do everything that you can to make the odds go on your side. But before every trade, you must see to it that you undergo a pre-trading routine.
Checking the Past Price Action
To start with, you must review the previous price action. Knowing where the price has been will allow you to have a better view of the current market condition and how the prices will move. You will also need to read everything about the market as well as the asset you are trading. Knowing more about these things is just a preparation for the bigger things that you are about to go through.
Thanks to the Internet, there are now a lot of ways to gather information about CFDs and the assets that are involved in it. You can check for some books online that tackles everything about CFDs. You can also check financial blogs, forums, and even social media. They all provide a handful of information either from first-hand experience or from financial advisors.
Start a Pre-Trading Ritual
It is also important to consider marking the key technical levels. This must be considered a solid habit to follow every time so you will know if the chart pattern is developing or if it is already near the buy and sell zone.
Other than that, you must start your trading day with a pre-trading ritual. What are the things that you do in the morning to prepare yourself for the entire day? Even though traders will most likely consume the most time of their day sitting in front of the monitor, it is still very important to warm up before the game starts.
Do some meditation or light stretching and exercise. This will help you relax and keep the pressure at bay. Finally, you cannot perform well if you are hungry! Be sure to take your breakfast so you will have the energy to last throughout the entire trading day.
Your psychological state must also be at its finest shape. Remember how emotions affect your trades? Do you still remember how you lost because you panicked when you saw that the market was starting to go against you? Well then, you are following the wrong path. Emotions will not benefit you in any way.
If you feel as though you’re starting to build up unnecessary emotions, try to get out and have some fresh air. Take a deep breath and remember your Trading CFDs plan, strategy, and risk management. Remember that you’re working so hard to prepare those important things before the trading, therefore, it shouldn’t be easily forgotten. After you regain your focus, go back and trade.
