When it comes to trading on the financial markets - whether trading on Forex pairs, spread betting on gold or oil, or taking a position on a financial index or a specific stock -  is it all a matter of intuition – a case of just being in the right place at the right time? Or is there actually a science behind it all?

Well, there are certain elements of the trading experience that it’s wise to bear in mind, which is why we’ve put together a periodic table of trading with points for you to consider.

Periodic_Table_of_Trading

The Different Elements of Trading

The periodic table of trading that we’ve assembled here at ETX Capital is split into three parts, to acknowledge the different periods of time which are associated with trading – namely, the period before one actually enters into a trade, the period during the process of the trade itself, and the period in the aftermath of the trade.

Before Trading

The ‘before’ stage focuses on some of the aspects of trading that might appear obvious, but which it seems that  a surprisingly high number of traders fail to take into account. Some of the steps centre around one’s mindset, the mental preparedness which can prove useful when taking a position on the financial markets. Others elements focus on the intellectual preparation one can engage in and the research one can do on a particular company or financial product, as well as the importance of keeping up to date on the news regarding the product one plans to trade on.

During Trading

The ‘during the process’ stage discusses the different actions that traders may well be able to use in conjunction with the trade, including the use of leverage and the initiation of a stop-loss. Again, it also discusses several seemingly minor points which can actually have an effect on ones’ trading, including the importance of not over-cluttering a trading chart with indicators. Some of the different elements mentioned here may appear to be minor points,

The Aftermath of Trading

Finally, the last time period of trading is one that is commonly missed out by many who take position on the financial markets, and that’s the aftermath of a trade. If a trade goes well, can you pinpoint the aspects of how you went about it that may have made it successful? If it went badly, where exactly did it go wrong? In short, what can you learn from this performance in order to potentially improve your performance the next time around?

There is certainly no guarantee that following all the different elements contained in this chart will lead to guaranteed profit – as a trader, the first thing you should realise is that profits are never guaranteed.  However, taking all the different aspects of trading into consideration, as this periodic table encourages you to do, may very well mean that you will find yourself in a better place to both limit mistakes which you might otherwise have made, as well as being able to conduct trades with the awareness of many of the factors which you might not otherwise have thought about.