With spread betting in the UK, all too often, traders aimlessly jump in and out of trades, hoping that this is the one that will make them rich, and when this fails to occur, they repeat the process endlessly. This is gambling, not trading. It can be contrasted with an archer who has trained themselves to focus only on the little red circle at the center of the board. Anything outside the circle is ignored. He pulls back his bowstring then pauses before releasing the arrow. The archer is poised and calm, concentrating so deeply that he is oblivious to the noise of the audience. Discipline is required to achieve this state.
Every trade is like an arrow and requires much preparation and focus. Each must receive the attention it needs to become a winning trade. When you are poised to make a trade, you should ignore all distractions and focus on the trade. Once a trade has been initiated, you should focus on the exit point. Each trade should be treated individually.
The best athletes are those who train the hardest. A trade must know their market. They must know its stability, liquidity and volatility and so understand what affects prices, for instance, world events, corporate events such as CEO appointments and economic data. A sudden rise in crude oil prices will exert downward pressure on shares in British Airways. Fastidious research is necessary. Fortuitously, bets can be placed on all manner of things, so you could well find something of which you know. As Joshua Raymond, a market strategist for City Index, said, there are more than 15,000 markets on which you can trade, so you should choose a market you understand. Knowing your market is one of his top five pieces of advice for traders. Charting tools and common-or-garden news can be useful. You may need to become familiar with particular countries. It will be easier to know your market if you specialize.
You should never trade for the sake of it. Even if you do not trade, you will have been watching the markets and learning and not losing money. There will always be another trading opportunity. Sometimes, the best thing you can do is nothing. Even the best traders sometimes lose, but focusing on a trading plan as described here will help you to trade without stress.