Most newbies try to use the others’ plan for getting success. But, as has been seen many times, the plans don’t work properly. Actually, beginners think, as the pro traders have got the success by using this plan, they may also get the success. But they need to understand, the market is unpredictable. So, if you want to cope with it, you have to make some changes. But the majority of traders apply a proven plan without any making a single modification to it. That’s why they face the big issues.
In this post, we will discuss why using a proven plan without changing anything about it doesn’t work in the market. So, if you want to avoid this undesirable situation, you should go through the article.
The situations are not the same
In trading, every situation is different from another situation. That’s why traders face issues. Some strategies might work well in a specific situation. By seeing this, many traders apply them in another situation. But, in these scenarios, the strategy doesn’t work properly. For this, before using the strategy, traders should do the back testing. After applying the plan in a different timeframe, you may come to understand what you need to do to get success. As a result, you may not make any major mistakes.
However, bear in mind, if the plan is applicable in the trending market. If you try to use it in the ranging market, you may face problems. That’s why you should consider the current scenarios properly before taking any steps. However, depending on the situation, sometimes, you need to make some changes in the plan so that you can make money. Bear in mind, you need to make some necessary changes. If you make silly changes, you might face trouble unless you test the new strategy. You can test the functions of a strategy, in a demo account from Saxo markets. If you are satisfied with your demo trading performance, you may trade with real money.
Don’t go with the personality
Traders should consider their requirements and capability before choosing the plan. Sometimes, they choose a complicated plan but fail to apply it. Experts always suggest traders use a simple plan. However, if you are not capable of making a quick decision, you shouldn’t choose fay trading or quick scalping. Because, if you do so, you may face problems. On the other hand, if you are afraid of taking the overnight risk, you should not choose position trading. Because, as a position trader, you have to hold the position for a long time. So, the real thing is, as a short-term trader, you should not use the long-term strategy. If you do so, you may face trouble.
Due to psychological factors, traders face problems. Sometimes, because of their overexcitement, they can’t use the plan properly, However, this is also seen, due to emotional turbulence, they skip the steps of the plan. That’s why they face the problems. Because, to achieve the goal, you have to use the plan properly. If you can’t use the plan properly, you may face problems. That’s why you first have to reduce your psychological biases. Otherwise, it’s not possible to achieve the goal.
However, some traders restless, some are lazy. On the other hand, some of them feel fear and can’t accept the loss. Because, of these issues, traders don’t get the expected result. The best way to reduce the psychological problem is to gain the proper knowledge which may help to get the success. However, once you get to know what you need to do for getting good outcomes, you may not face any sentimental complexities.
However, you should try to develop a new strategy which may help you to get the success. As a trader, if you can use an appropriate plan, you may get the desired result. But, if you can use a proven plan by making some valid changes, you might also be able to achieve your goal.