With the start of 2022, many people will be considering new rules to follow to be successful traders in the coming year. So today, we will go through 5 trading rules you must follow. Let’s have a look at these five rules.
• Plan for trading
The first rule is that you must have a comprehensive trading plan. When you make a trading entry, you should already have a stop-loss, target, movement, OI (Open interest), and what changes you expect to see. Everything must be with you. Because after making an entry, you cannot do a market analysis.
• Always Save Your Capital
It is crucial; since you can only do trading if you have money. If you don’t have money, then how can you do trading? You can’t make money by just watching the market. You have to execute the trade and then bring out profit from it.
• Use of technology
One of the vital rules in today’s era is to use technology. It provides you with the exact aim and helps you exit with accuracy because it has no emotions. As a result, you can make a significant profit or even make an exit from the market with a minor loss.
• Keep it Simple
Many people engage in sloppy trading, which can harm your mentality and cause you to lose faith in one thing in particular. In the same way, you would not be able to grasp why you made a profit on any given day. As a result, keep your trading simple.
• Be a market student always
Yes, the day you thought that the stock market had to work for you. You are in trouble on that particular day. As a result, you always have to be a market student and continue to study. Only then the market will keep rewarding you.
A good trading strategy will help you make money without any doubt, but these rules will help you manage your risks while making money and staying in the game for the long run.
Watch on https://youtu.be/lcqSiWsGKU0
Trading strategies based on the volumes and Order flow arriving in a market are among the most effective for successful operations.
If you are not considering supply and demand in your trading decisions, your trading decisions are lagging, you are taking more risk in your trades using price limits, and you have a hard-to-read chart covered by lines.The Order flow trading strategies can simplify your approach to trading.Trading with Order Flow is simpleNow, all you need to understand is what the trading with order flow is about:keep track of quantities that have been bought and sold at different pricesusing this information to identify supply and demand patterns – we can then notice the price levels at which there has been supplying or demandsee if supply or demand is maintained or interrupted when these price levels are revisedYou can use various tools to view buy and sell volumes at different price levels.
We can help you acquire these skills through our online material, training courses, and coaching..... however, applying order flow indicators to this raw data can save time and perform analyses that are too difficult for humans to do or too fast to interpret.
Identify significant events in supply and demandPresent them to you, andFollow the behaviour of the levels over time.You can use this information for manual discretionary trading, for alerts, or even to automate trading.Another amazing toll is the Order bookThe order book is also referred to as DOM (depth of market).
For most brokers, it can also be used directly for placing and moving orders.In addition, professional platforms for order flow trading strategies offer a variety of plug-ins and the possibility of customizing the DOM, for example via the so-called "Smart DOM".
Nowadays, the biggest problem for order flow traders is algorithms, especially high-frequency (HFT) traders.
