Mistakes can still happen even if you create the most comprehensive plan to be used in day trading. These mistakes often occur when too much information is crashing against each other when you do CFD trading. Then, the trader gets too overloaded and starts to panic or get frustrated. To avoid wasting your time and money, you should check out these guidelines to avoid mistakes as much as possible.
Keep Updated With The Economic Calendar
During high-impact economic events, there might be spikes or slippage on the stop-loss order that you placed. In this case, it is highly advisable to avoid trading during these times just to avoid the impact of this scheduled news. Always check your economic calendar at the start of the trading day.
Launching the platform
When launching the platform, you have to make sure that the quotes are all streaming and the program is going smooth. There are already a lot of brokers who can provide reliable data that you can use in case an unexpected problem arises.
Trading With The Correct Contract and Account
There is some trading platform like MetaTrader that allows you to trade in multiple accounts on a single trading platform. In this case, you have to make sure that you are trading the most appropriate trading account for you. More importantly, you also have to be vigilant when you practice your moves on a demo account. There are traders who end up thinking that they are trading under a live account and become too excited only to end up realizing that they are trading on a demo account.
Writing Notes As Reminder
Put on some notes on your chart during the release of high-impact news. There are instances in which you get too focused on the trades that you end up forgetting these significant events. But if you write these notes into your chart, you will get reminded of it every time you trade.
Check Your Automated Strategies Multiple Times
For traders who are trading manually, there are still orders that are done automatically. In this case, make sure that these automated orders are running properly before you use them in the live market.
Set The Default Position Size Appropriately
For traders using the default position size, it is better if you set it appropriately because just adding a single digit on the position size could change the outcome of your trades and adds trouble to you. Meanwhile, if you drop a digit, you will also miss out on positive opportunities.
Utilize Trading Journals
Throughout your trade, make sure to write any activity that you did in a trading journal. This will help you remind on your mistakes and how you manage to gain profits as well.
Assess The Market Conditions
Is the market showing signs of extreme volatility? Or is it remaining to be subtle? Check these conditions in the market before you open a position in CFD trading. This will determine if you should continue trading your system or not.