Steps to Support Confident Trading

There is no roadmap for consistent, confident trading. No one trading system can be fully effective all of the time. That is part of what makes trading interesting, but also what makes it risky. That said, there are some steps that you can take to increase your confidence in your trading. Mike Green, CEO of Dimension Trading, recently joined the NinjaTrader Ecosystem to share some of his personal steps for effective trading.

Green said the key confident trading is to reduce trading stress. This may sound like common sense, but there is more to it than it may seem. Being in the markets can be a stressful situation, so Green advised spending as little time in the market as possible. The key is to create a trading plan, have pre-determined signals and triggers, and to know when and when not to be trading.

One key aspect of a solid trading plan is to understand where strong support and resistance might exist. Green recommended studying Fibonacci power zones and Fibonacci extensions, and to learn how they can potentially represent support and resistance. Understanding these principles can help increase trading confidence, but Green also suggested using automation tools for additional help. Automated trading systems can help traders stick to their trading plans and remove human emotions from the equation. With the speed of today’s markets, automated strategies can help save traders valuable time.

It is crucial to understand more than just the zones on a chart though! Traders also have to be aware of the day’s news and understand how emerging stories and reports may affect the markets. Economic and financial news can have huge impacts on market movement. If a trader is not aware of what news is coming out during the trading day, they may find themselves caught “in the jaws” of a sudden, significant market swing.

In general, it is just as important to know when not to trade as it is to know when to enter the market. Choppy market conditions can be a signal that a trader should stand aside. The imminent release of a large financial report is another example of when it may be best to stay out of the markets for a bit. Taking precautions and managing your risk are important keys to trading confidence.

Green said that all of these steps boil down to three main points:

• Know your trading areas
• Have pre-determined triggers
• Develop (and stick to) a trading plan.

While it is impossible to always expect success in the markets, these three steps can help increase confidence – and consistency – while trading. To hear more of Mike Green’s thoughts on stress-free trading, watch the short clip below.

Also, be sure to check out Green’s full-length webinar, “Easy Trader System with Markers Plus Automation”. Then, explore all of the archived futures trading events in the extensive NinjaTrader Ecosystem video library. To see a schedule of future events and register to attend live, visit the Free Webinars page. Finally, to be kept in-the-know about upcoming events in real-time, register for email notifications using the contact form at the bottom of this page. See you there!