1. Can’t wait to Dip your toes in the market.
Nearly 90% of newborn traders open many trades at the beginning, then are unable to follow them. When focusing on just fewer trades and choosing them carefully, you will have the chance to learn from your orders and will use them to improve as a trader.
2. Keep Your Balance.
The Market will give you unlimited chances of making profits, but the hall of fame is not all about making the profits, it is the ability to keep them. Allowing profitable trades to run, cutting losing trades, and most of all not allowing pressure to change your trading strategy is your best way to profitability.
3. Don’t Forget Your Stop Loss!
One of the main reasons new traders tend to quit trading in the first 6 m months is not being able to control their losses as they either forget to place their Stop Loss, place it on a wrong price level, or just never use any. Using it will protect you from suffering heavy losses when you are on the wrong side of the market. You can place a Stop Loss on every single trade or on your equity. Later on, we will talk about appropriate levels for placing your Stop Loss based on average market volatility.
4. Make a Trading Strategy – Have a plan.
As in every business, you will need to have a plan and determine your goals. Before you plan, you must ask yourself, how much money do I need to make on a daily/ weekly/ monthly/ yearly basis to be happy? How much time do I have for trading? What is the amount that I am ready to invest? To succeed you will need to develop a strategy that will work for you, based on the answers to the questions.
There are many ready and developed trading strategies and financial instruments out there. Pick and develop very wisely. Investors with more time will adopt a day trading strategy and become day traders while others will prefer to be swing traders, keeping their trades in the long run. Whichever trading style suits you best, stick to your plan. New traders constantly change their strategy when they experience losses. Taking losses is part of the game. The key is to cut the losses while they are small and to allow the profits to grow.
5. Allow the Profits to Develop.
The mistake nearly 90% of newbie traders do is closing the winning trades very early, not allowing them to grow. Stick to your plan. If you have decided to make 100 EUR on every winning trade, then don’t close it on 50 EUR. Be patient.
6. Allowing Profitable trades to turn in Losing Ones.
When the market is in your direction, then you are making money. Follow the trade. Move your Stop Loss or Trailing Stop above the entry-level if it is a BUY order and below, if it is a SELL order and lock your profits. In case of a market reversal, you will preserve your profits.
7. If In Doubt, Follow Us, Contact Us.
8. Plan wisely and Ahead.
Don’t just enter a trade, because you see the price suddenly moving. It should always move. Plan your trades, before opening any. Know your Take Profit and Stop Loss levels. Have a good idea of your entry and exit points. Now, wait for the right moment and take advantage of the markets.
9. The Trend is your friend. Know the Trend and feel the Momentum.
Traders should be aware when a trend is developing, also the momentum is increasing also increase. Don’t get fooled by an emerging trend. Wait for it to develop. You should be on the side of the momentum. The momentum will push your trades sooner in your direction, hitting your Profit levels much quicker than expected.
10. Forget wasting time on a losing trade.
Learn to keep yourself fit. Save your time and energy. If you see yourself in a negative trade and have forgotten to use a predetermined by you Stop Loss, do not worry, it is not the end of the world. Just close the trade and move on planing the next one. The Forex and CFD markets are full of joyful moments, just waiting to be hoped on, so there is no logic in wasting time on losing trades.