1. Can’t wait to Dip your toes in the market.
Nearly 90% of newborn traders open many trades initially and then cannot follow them. When focusing on fewer trades and choosing them carefully, you will have the chance to learn from your orders and use them to improve as a trader.
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2. Keep Your Balance.
The Market will give you unlimited chances of making profits, but the hall of fame is not all about making profits; it is the ability to keep them. Allowing profitable trades to run, cutting losing trades, and not allowing pressure to change your trading strategy are your best ways to achieve 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 need to remember to place their Stop Loss, put it on the 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 trade or your equity. Later, we will discuss appropriate levels for setting your Stop Loss based on average market volatility.
4. Make a Trading Strategy – Have a plan.
As in every business, you must have a plan and determine your goals. Before you plan, you must ask yourself, how much money do I need to make daily/ weekly/ monthly/ yearly to be happy? How much time do I have for trading? What is the amount that I am ready to invest? To succeed, you must 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.
Nearly 90% of newbie traders make the mistake of closing the winning trades very early, not allowing them to grow. Stick to your plan. If you decide to make 100 EUR on every winning trade, don’t close it on 50 EUR. Be patient.
6. Allowing Profitable trades to turn into 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 earnings.
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, and the increasing momentum also increases. Don’t get fooled by an emerging trend. Wait for it to grow. 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 Stop Loss, do not worry; it is not the end of the world. Just close the trade and move on to planning 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.
Disclaimer:
All information has been prepared by TraderFactor or partners. The information does not contain a record of TraderFactor or partner’s prices or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may read it. Past performance is not a reliable indicator of future performance.
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