If you’re a newbie when it comes to the world of trading, you have to learn these hacks that will help you become successful.
Define Goals and Choose a Style
Before you start the ball rolling, you must have some idea if your destination and how you will get there. As a result, it is also a must to have clear goals in mind, then ensure your trading method is capable of achieving these goals.
Each trading style has a different risk profile, which needs a certain kind of attitude and approach to trade successfully.
For instance, if you cannot stand going to bed with an open position in the market, you might want to perform some day trading instead. On the other hand, if you have funds that you think can gain some benefits from the appreciation of a trade over time, maybe some months, you may consider position trading.
Overall, you have to ensure that your personality fits the style of trading you undertake. A personality disconnect will result to stress and certain losses.
Broker and Trading Platform
Picking out a good and responsible broker is hugely important. You might want to perform extensive research on the difference between your prospective brokers.
Check out each broker’s policies and how he or she does his or her job. For instance, trading in the OTC market or spot market is different from exchange-driven markets.
Make sure that the trading platform that your broker offers is suitable for the kind of analysis that you want to perform.
Methodology and Application
Before you join any market as a trader, you need to have some idea of how you will make decisions to execute your trades. Must know what information you will need to make the appropriate decision when it comes to entering or exiting a trade.
Some people choose to look at the underlying fundamentals of the economy as well as a chart to determine the best time to execute the trade. Others choose the use only technical analysis.
Whichever kind of methodology you choose, you have to be consistent and make sure that it is adaptive. The system you have should keep up with the changing dynamics of a market.
Choose Your Entry and Exit Carefully
A lot of traders get confused by the conflicting information that takes place when looking at charts in different timeframes.
What shows up as a buying opportunity on a weekly chart could, as a matter of fact, show up as a sell signal on an intraday chart.
Therefore, if you are taking your basic trading direction from weekly chart and using a daily chart to time entry, you have to be sure to synchronize the two.
In other words, if the weekly chart is giving you a buy signal, wait until the daily chart also confirm a buy signal.
Keep a Record
A printed record is a great learning tool. Print out a chart and list all the reasons for the trade, including the fundamentals that sway your decisions.
You can go through LBLV Broker Review or mark the chart with your entry and your exit points. You can put any relevant comments on the chart, including emotional reasons for taking action.