Tips Everyone Needs To Know Before Trading Stocks
For anyone coming into trading who believes that just commencing to trade currencies is an “Open Sesame” to immense wealth, dream on. The reality is that most traders lose money and those that come out on top face an on-going struggle to stay that way. Tackling the flaws may help “newbies” learn from the lessons – and the difficulties – of their elders. Let’s take a look at the most prevalent failings and see what can be done about them.
Flaw 1: You ain’t got no method…
There are many methods and structures for tackling Forex trading. Make sure yours is clear and defined – and what’s more short and explicit. For help with this, you can take a forex trading course.
Flaw 2: You ain’t got no self-discipline
We just stated that you need a clearly defined methodological approach to all your actions as a trader e.g. what’s a buy, a sell, when to exit. The second fatal flaw is to have the plan and then not to keep it. Stay focused at all times. It may help to get a a little help, like figuring out the best trading platform UK or other areas.
Flaw 3: Are you for real?
Do you have exaggerated concepts of earning money very quickly with very little effort? Don’t bank on it – you may find at the end of the day that you have left yourself with very little in the bank anyway! Obviously nothing is impossible and you could end up making substantial profits in your first year, but a more prudent approach might be to make your initial target not losing any money, and wait till year two before you start smashing the market out of sight.
Flaw 4: How’s your patience?
It has been suggested that markets only trend in a clear direction for about 20% of the time and therefore the tendency to fill the empty time because you feel pressure to be active when there’s nothing really doing. You start doing lesser quality trades and are in danger of over-trading. Always remember that it’s worth waiting for the right opportunity.
Flaw 5: Manage your money
Top traders never risk more than 1-3% of their capital and small traders should follow suit. If you only have $5000 in your account, keep your trades to $50-150. If you keep your trades low, you can cope with the down times.
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