How to ensure agile trade execution
For those with experience in trading, our next statement won’t come as much of a surprise to you: Agile trade execution takes practice. In fact, it can take an incredible amount of discipline to reach a point at which you can ensure that each trade you make is the best it can be. With a world filled with financial technology and all the inside knowledge you could hope for; agile trade is simpler than it may seem. Here, we’re delving deeper into the world of trading and what you can do to ensure the best trade execution.
Define Your Goals And Pick A Compatible Trade Style
As with any project, work related or otherwise, having an end goal in mind is vital for ensuring maximum motivation and direction. Of course, reaching that goal will require you to work out the right way to get there, and in the world of trading, this comes in the form of trading style. Your style of trading will need to be compatible with the goal you have in mind, however. Each style will have its own risks and advantages, all of which will require a different attitude from the trader using it. Day trading, for example, is best for those who aren’t willing to take the risk of leaving an open position in their markets overnight, while position trading is the ideal style for those looking for more long-term investments.
Once you’ve chosen a trading style and ultimately a method within that style, you’ll need to be consistent. A little research goes a long way when it comes to choosing your methodology, and after you’ve chosen your desired process too. You’ll need to know what information you need for navigating your trades, which will come into your methodology but whatever the case, you need to be consistent. Consistency can reap plenty of benefits, though you need to ensure that your methodology is adaptable to keep up with changing markets over time.
Be Smart With Your Entries And Exits
Choosing entry and exit times for your trades can be a confusing, if not very stressful experience. Time frames on different charts can have contradicting results, so ensuring that you choose charts that sync together well, and keep track of what both are suggesting at any one time is vital for ensuring agile trade execution. Make sure that if a weekly chart is giving you a signal to buy on a certain date, that the daily chart is also giving you the same signal.
Keep A Printed Record
If nothing else, keeping a printed record of everything is a great learning tool. Charts, lists of reasons for your trade, and any fundamentals that will sway your decisions should be recorded and printed out, and marked with your entry and exit points. File this away, so you can refer back to it when needed. Doing this can help you look back over past trade decisions that went wrong or write and help you assess exactly what may have gone right or wrong – even if it was an emotion-driven decision!
Make The Most Of Your Weekends
While the markets may close on weekends, you certainly don’t have to. Make the most of this time, studying weekly charts and looking for any potential patterns you could follow or news that might affect the trade you choose for the following week. Utilising this time will better prepare you for the coming week, and give you the opportunity to reflect on what you have faced previously to better improve your next week’s trades and methodology where necessary.