New Traders are always guilty of not doing Home Work. Home Work or proper research is extremely important for you can get an idea of the various trends , timing and trading patterns etc. used by proficient traders. So home work is the best about the investment you are about to make and then only move forward!
Professional traders spend most of their time on analysis and preparation rather than on trading itself. In fact, trading is the process of executing orders strictly in accordance with the plan developed in advance. The plan should be based on the particurar strategy with tested performance and detailed rules describing each step from choosing the setup to closing the position with profit or loss. That is why it would be better to speak about three types of research: 1. Strategy development research performed to find an idea and develop a strategy based on it. Of course, not every idea could be turned into the strategy, so this process is quite complicated and requires exceptional attention and creativity. 2. Daily pre-trading research. Trading preparation is extremely important since it allows trader to benefit form the most interesting situations that take place at the market. Each day before trading session trader creates a list of trading ideas based on news or technical patterns. 3. Trading analysis. One of the main parts of the process. Traders should analyse all their trades and actions to be able to improve thier performance.
