For most aspiring traders, the world of trading is a scary one. This is because most new traders start trading not having the right foundation; therefore, most will get confused and frustrated. Impulsive decisions follow, blown accounts occur, and, in the world of trading, you are lost.
To solve this problem, resources such as How to Trade have come up with comprehensive systems that facilitate trading. The way forward is ensuring there is a well-defined trading plan, of course, the TST system, which equips any trader with necessary tools and strategies to turn their trading career around. Applying the system will enable the beginner trader to give himself a rock-solid foundation and help him develop disciplined habits, therefore facilitating better trading performance.
Understanding the TST System
This system, namely the TST- Triple Screen Trader system- is designed to help a trader make the right decisions along with proper risk and emotional management. Three very important tools are applied in this framework- the Pattern Finder Tool, Support and Resistance Tool, and the Risk Manager Tool. Those tools make up an overall trading strategy which focuses on good habits from the very first.
Trading Plan
A trading plan is actually a guide in the complex terrain of financial markets. It enables traders to sail through storming so that they can make effective decisions and manage risks; many newbies do not have a plan to trade and therefore a gamble is risk instead of a strategy for them, and my early days were marked with trial-and-error, often piling up heavy losses and frustrating setbacks. However, after establishing a trading plan and adhering to it, my winning rate was suddenly very much above zero.
Good Trading Habits
The TST strategy primarily focuses on imparting good trading habits to new traders. Most retail traders start trading by just hitting random buttons in the demo account, which leads them to certain spurious results. As a result of this process, they get convinced of some false beliefs that eventually lead them to inappropriate trading habits.
Contrarily, this TST framework trains individuals to continue with an orderly process of repetitions and consistency. Thus, with the consistent application of the framework, traders can foster mental toughness, self-confidence, and a clear strategy.
Components of the TST Framework
- Pattern Finder Tool
The Pattern Finder Tool helps a trader identify important patterns in price movements, critical for predicting possible market reversals or continuations. It is with this tool that the trader makes his entry and exit decisions into the trades with much more sense. It is vital for novices because it simplifies the process of evaluation and reduces the possibility of impulsive decisions. - Support and Resistance Tool
Support and resistance levels provide any trader with a successful way of trading. By utilizing the Support and Resistance Tool, a trader can find crucial price levels where buying or selling pressure may be experienced. Points analyzed let the trader know which points would be good for entry as well as for exiting while always maintaining control over risk. This tool encourages discipline in trading, so beginners will base decisions on what market behavior dictates rather than emotions. - Risk Manager Tool
Effective risk management would turn out to be one of the most critical success factors of trading. With the Risk Manager Tool, a trader is capable of setting predefined parameters of risk for each and every trade, thereby avoiding excessive loss. The tool persuades beginners to approach things cautiously because capital needs to be preserved rather than being thrown around for profitability. Effective risk management strategies make the traders immune to market fluctuations and help them build long-term success.
Making Use of the Economic Calendar
A very essential concept integrated in the TST model is the economic calendar, which provides the most important information regarding the schedule of events of high-impact news that may affect volatility within the markets. A trader can, with the aid of the economic calendar, know which currencies to watch during his session.
For instance, when news about the U.S. dollar is released, being quite strong economically, a trader should pay much attention to currency pairs containing the dollar within the analysis. Such pre-emptive action may help a trader better understand the potential movement of the market and change his strategies accordingly.
Trading the TST Framework
Having described the need to have a proper trading plan, and the components of the TST framework, let’s now discuss how to use the former effectively.
Setup Your Trading Platform
Step 1: download such tools to your trading platform. MetaTrader 4 (MT4) and MetaTrader 5 (MT5) become the base tools through which you can comfortably access the Pattern Finder Tool, Support and Resistance Tool, and Risk Manager Tool.
Learn the Tools
Step 2: learn how to use all the tools.
Take the time to learn how each tool works. It’s not just sitting in front of tutorial videos but actually using the tools actively in a demo environment. In this manner, you will get to know the tools inside and out so that you would be able to use the tools directly in live trading.
Develop Your Strategy
Step 3: Decide on a particular trading strategy by incorporating the knowledge which has been acquired in TST. Use specific buy and sell boundaries, with patterns and support levels and resistance clearly defined. Set risk boundaries using the Risk Manager Tool to protect your capital.
Monitor and Adjust
Step 4: Regularly review your trading performance and correlate your strategy along with the adjustments it undergoes. This involves maintaining a journal of your trades and determining what was good or bad. Journaling lets you continually refine your approach and cultivate increased discipline over time.
Stay Disciplined and Patient
Step 5: The challenge of becoming a good trader is through discipline and patience. You should not be tempted to chase losses or make emotional trades. Stick to your trading plan and let your trust be in the process.
Conclusion
The TST framework is helpful in allowing a beginner to avoid confusion and frustration when getting started in trading. The trick, however, is to trade on a solid, defined trading plan, along with the use of very basic tools, yet instead becoming increasingly concerned about good habits. Remember, strategy only accounts for 20% of trading; 80% relies on mental discipline and emotional control.
