There is nobody who does not want to win in the race of market. For winning a race, your strategy plays an important role. It is not easy to make a strategy. You have to observe each move of the market. Without a proper strategy, you cannot able to see success. Your strategy will control your emotions. Sometimes, it is seen that traders take some decisions emotionally which can cause great loss. Your strategy will show the path of trading. Just like this, when you open a new trade, execute your strategy. Your predetermined strategy will help you to understand the condition of the market logically, not emotionally.
Regulate Your Goal
You have to set your goal. Some traders set a short-term goal in the ETF market. On the other hand, some traders set a long-term goal. You need to decide what you want from the market. Set what is your expectations. Many traders want to trade on a certain amount of shares. They also complete their buying selling process within a day. It is also seen that some traders stay with their trade for a long time. So, you need to decide where you want to trade and what your main goal is.
Fix Your Time
This is very crucial for you to decide how much time you can spend on trading. Before making a strategy, you have to aware of your spending time in the market. If you cannot invest more time in the market, then day trading will be good for you. So, you need to prepare your plan like a day trader. If you think you can invest more time in the market, swing trading can be appropriate for you. One thing, you need to remember, you have to spend your time for knowing about the ETF market. You can learn from books, journals, and online sources. You can also visit https://www.home.saxo/en-sg/products/etf to know more about ETF trading and this will definitely help you to become a pro trader in Singpore.
Test the Trading Strategy
This is also important to know that your plan is effective or not. To do this, you can easily try it in the virtual market. The big facility is that you do not need to invest your money. Here, you will get every opportunity that you get in the real market. In this market, virtual dollars are used for transactions. If you find that your plan is working, you can apply it in the real market. On the other hand, if you see that the plan is not working, then think about it. Find out where is the problem. After that make some changes in your portfolio.
This is very crucial to decide how much risk you can take instead of how much reward. Try not to take risk more than 5%. You need to maintain your risk-reward issue. If you decide that you can take a $200 loss instead of a $400 reward, your risk-reward ratio will be 1:2. This is the ratio between your stop-loss and take profit. Do not change your stop-loss and take profit repeatedly. It can be a cause for great loss. Always try to set your stop-loss. This will can help you from great destruction. It helps you to preserve your capital.
Learn from Previous Error
This is not possible to make profits always. All traders see ups and downs in their trading life. If you are not aware of your mistakes for which you have seen losing streak, then the mistakes will be repeated. Do not be emotional. Try to stay with the trade. When you see loss, try to understand where the problem is. You need to find out in your strategy what needs to be changed. Do not avoid the previous record. Try to learn from it. When you get time, observe your previous trade. Make some changes in your strategy, what is required.