Effective traders are always working to improve their knowledge and abilities. Although you will not use all you know on each trade, increased knowledge will build your trading skills and ability to trade your own beliefs about the market. You will know you are using the material you have learned when you:
- Seek to follow a trading plan when preparing to trade.
- Strive to consistently study, visualize, internalize, and apply the knowledge you will gain about the market.
- Refer to your training material to make specific plans for each type of market condition you may encounter.
- Focus on the central indicators for the type of market conditions you are trading.
- Adjust the use of each of the indicators for the pace of the market and the time frame you are trading.
- Trade with confidence and follow your trading rules.
- Reward yourself for the good weeks and or months you will have.
As you begin your trading career, you will need to learn the organization of the indicators and acquire the necessary trading skills. As you gain experience, you will want to deepen your knowledge and enhance your trading ability. As you prepare for trading you will want to have a trading plan that enables you to trade indicators that are giving you in the moment signals. The guide lines below are suggestions that you can apply throughout your trading career. However, do not feel that you must use every guideline in every situation. Instead, apply these guidelines to meet your needs and as you see entry and exit signals form.
FOCUS ON THE DIFFERENT TYPES OF TRADING
Focus on simulated, demo and visualization trading. Understand the purpose for each type of trading.  Learn what someone should know about each type of trading. Be able to explain the uses of each type of trading.
LEARN AND APPLY THE TRADING SIGNALS
Know how to use each of these types of trading for they are the foundation of your trading system. Search for material that gives a solid understanding of the currency market. BabyPips is a good resource for the basics of trading.  Commit to memory the sequence of the entry and exit signals. Be able to see in your mind the trades set up and know when to get in and out. Be able to apply the things you have learned in Simulated and Demo trading. It is good to share with someone what you have learned.
ORGANIZE YOUR TRADING PLAN AND STYLE
To prepare to trade the markets profitably and with confidence organize and summarize how you will trade in your trading plan. Focus on the trading signals and use patience to wait for the signals to be confirmed. Enhance your trading plan by finding examples of each of the trading signals. The length of time and the number of pips should vary depending on the currency pair and the time frame you are looking at. When a trading plan is first created strive to be simple and brief. Enhance the plan as you gain experience and skill.
LEARN WHEN TO USE EACH SIGNAL
With a hand full of good indicators and signals you should learn to use the proper signal at the proper time to best meet the markets different moods. As you study the indicators and the market identify currencies and times where an adjustment is needed to trade the market. Focus on the ultimate goal of making money in the currency market by adjusting the use of indicators and timing.
LOOKING FOR ANSWERS
As a trader, you will have many questions. Record these questions in a study journal. Search books, magazines, the internet for the answers to your questions. Record the answers in your study journal. Review what you find with other traders. Add frequent questions and their answers to your study journal for reference.
EVALUATE YOUR TRADING
After every trading situation, evaluate how well you did. Record the results in your trade journal. Did you focus on the signals and the entry and exit points? Did you wait for the trade to come to you and wait for the market to tell you the trade was over? Did you exercise patience and control your emotions? Did you trade by the rules or use your pocket book to try and make the trade work?
As you are learning to trade, continue seeking for a deeper knowledge of the trading strategy. Actively work to trade with greater skill and thought. As you study your knowledge and skills will grow. Keep your trading clear and simple and based on sound trading and money management principles.
DEFINING WORDS
The currency market has its own unique vocabulary. Just as a physician speaks differently in the family waiting room than in the operating room, so too must you learn to speak the currency language when you are in your trading room.
To prepare to understand others speaking the currency language, study the list of key definitions and terms in the Glossary section of this blog.