5 stages of successful trading

Using the term 'effective trading', a trader implies a percentage ratio of possible profitable transactions to unprofitable ones, while the desired value is expected to be positive and results in bringing profits to the trader. To achieve the desired result and increase the efficiency of trading, you need to define and follow several laws in accordance with the mentality of the trader. Conventionally, the trading process can be divided into five stages.

If we conditionally divide the entire trading process into five stages, then three of them can be attributed to intellectual stages. During these stages, brainstorming comes first. And the remaining two stages can be called reflexive. These stages are applicable not only to a certain time interval of a trading session, but also to each individual financial transaction.

Prospecting
The first stage of successful trading is to identify the most acceptable opportunities on the chart. At this stage, a trader performs a visual analysis of the chart of combinations and tradable models of the applied trading strategy. The intellectual component of this stage involves making decisions, taking into account personal emotions, such as risk appetite.

Opening a position
After the trader has found the most suitable pairs and patterns on the chart, he moves to the next stage and open a position. This stage can rather be called reflexive, as the stage includes mechanical work with the terminal in terms of the prior actions. Usually, implementation of this stage takes just a few seconds.

Open position management
After the trader has opened a position, the next step is managing trade. The trader becomes an active bidder, risking his own money. At this stage, the trader may feel nervous or tense. This stage is considered to be the most difficult due to strong emotional tension. However, after some time, any trader can learn to keep calm.

Fixing and closing a position
After some time, the trader moves to the next stage - fixing a trading position. Depending on the result, this can be about fixing profitable positions or about fixing losses. This stage can also be attributed to the mechanical reflex action. However, it is important to remember that it is necessary to conduct a competent and timely analysis before closing a position.

Analysis of the transaction
The final stage of successful trading is the analysis of the transaction. The trader needs to analyze if the time of input / output was chosen correctly, measure outcomes. In case of revealing some errors, it is necessary to draw conclusions and revise the used trading models.

With the observing all stages of trading, a trader can significantly improve the efficiency of trading process.