Developing a set of skills takes practice and perseverance. Trading is no different. There are a few different paths you can take to develop your trading to get it where it needs to be. Programs like Trader on the Street and Apiary Fund have the goal to teach individuals how to develop their trading through a multitude of ways. These include things such as backtesting, indicator knowledge and application, and market knowledge through experience. Being able to utilize these three will help you develop your strategy and trading to the levels you hope to achieve.Backtesting is one of the most common tools and easiest things you can do when you first start your trading to get the best results. There are many ways to backtest, with the most common being applying all the settings to your chart you would use to trade and looking back at recent data to see how it performs. For example, say a trader is using a SMA crossover technique. The two SMAs would be applied to the chart and all the previous crossovers would be analyzed. How many pips on average occurred after each crossover? How long did each run after the crossover take? Are these trades worth the time for the gains currently or should I switch markets? This can be applied to any entry method, and with those questions asked, traders can maximize their return by strategy and pair.
Knowing what each indicator you use does and its calculation can be the most beneficial tactic for those who rely heavily on indicators in their trading. While yes, knowing that a specific crossover or indicator pattern is a buy or sell signal, knowing how that's calculated can be vital in trading. If a crossover occurs when a certain change in market price is met or a percent change is met, seeing that crossover and entering the trade without knowing why that happened in the market can result in a loss. There are many things that could cause a quick fluctuation in the market from a big bank accidentally mistyping a trade to a news event. Spotting those in the market because you know how an indicator is calculated can filter those out. Certain classes the Trader on the Street and Apiary Fund teach will go over the calculations and how to use those to better develop your trading strategy.
Finally, and arguably the most beneficial, way to develop and improve on your strategy is practice. The markets are cyclical they say, but they're also always changing. By trading and looking at charts consistently, traders will be immersed in a plethora of market conditions giving a wide view of how the markets work and how to make necessary changes based on movements that are in the markets leading up to a specific move. Having an understanding of the market, and how the different progressions end, can make future trades more accurate in exits and ultimately profits.
Finding the best way, personally, to develop your trading, whether it be watching live trading sessions with brand new traders like on Trader on the Street or just by backtesting a strategy repeatedly until you get it exactly where you want it to be in terms of success, developing and fine-tuning a strategy is a trading requirement if you're looking to make trading an income stream you want to utilize or just a hobby you want to do in your downtime.