All traders probably have a dream of living in a high-rise near Wall Street, driving a Lamborghini and spraying cash out the window.
But I think that when you’ve worked your way up as a trader, you stop having such grandiose thoughts and become humble and in awe of the market.
Everyone has an equal chance to make a deal.
If you have some skills, you can definitely go further than others.
The good news is that you have plenty of time to master these skills.
Without further ado, today we’re going to bring you the top 7 trading guides you need to take your trading to the next level.
1. Learn to Analyze the Market If you want to become a master trader, you need to have extraordinary analytical skills.
If there is no market analysis and the transaction becomes a gamble, you might as well try your luck at a nearby casino.
Thankfully, analytical skills are not innate, but acquired through experience.
Learn to understand patterns in a K chart and use technical analysis to find clear entry points and stops.
Soon, you’ll be able to balance the risk-reward ratio and lose less if something goes wrong.
There’s a reason we put analytical skills in the first place.
They determine the basic ability to understand market conditions and predict trends.
Without good analytical skills, traders are governed by their emotions and rely on luck.
2. Stay calm Life is full of ups and downs, and so is trading.
When you lose control of your emotions, it will constantly affect your next trade.
Even if you exercise restraint, you will suffer at least one major loss.
More often than not, maybe four or five consecutive losses won‘t bring you back to your senses.
To be a successful trader, you need to be prepared to take losses.
People who crack under pressure are more likely to lose their funds.
In trading, it’s all about being alive.
Even if you make a mistake, there is always a way to correct it.
Of course, it’s easy to stay calm on a good day.
But to be successful, you need to learn not to back down even when everything seems to be going against you.
3. Stay Focused Trading is a diverse field.
There are a lot of instruments, a lot of asset classes, and certainly a lot of market opportunities.
There are many ways to make mistakes.
If you want to avoid them, focus on a single instrument and a limited number of asset classes.
Choose a market and a strategy and focus all your attention on it.
With experience, you’ll learn to multitask and understand how to get out of your comfort zone.
But in the beginning, focus is everything.
4, maintain self-discipline trading success comes from experience, experience comes from time.
Of course, the time you spend trading is not the time you spend lying on the couch watching TV.
Unfortunately, discipline and hard work cannot be avoided.
Only through continuous solid operation, can develop a habit.
Successful traders spend hours trading every day, even when they want to do something else. How can I put it? It’s half your job and you have to take it seriously.
It’s hard to stay motivated in trading, especially after a loss.
But don’t give up, and I promise you, you’ll see progress.
5. Be patient You’ll feel your fingers itch to make a deal, but nothing seems to happen.
Our advice is never to make a deal for the sake of making a deal.
Traders often have to wait for market opportunities.
Sometimes a situation may feel like an opportunity, but if you look closely at market conditions, you’ll see that it’s better to wait a little longer.
So if you’re not sure about something, don’t rush to trade until you know what’s going on.
If you miss an opportunity, it’s no big deal, there will be more opportunities soon.
6. Recognize Common Misemotions. People are wired to think about money too easily.
When you’re on the verge of making a fortune, it’s easy to let emotions take over.
Here are some of the most common emotions that can lead to bad trading: Anger — there’s a pattern called the “revenge trade.”
After suffering big losses, some traders jump head first into the game without analyzing their mistakes.
They try to recover their losses, but they often lose more.
Overconfidence – The opposite is the case where a trader has a string of good luck and feels like it will never end.
Unfortunately, it does.
If it makes traders careless, they may make mistakes.
Fear of missing out — Obsessive compulsive information is one of the reasons traders lose money.
For example, a trader heard some rumors about the digital currency and rushed to buy it.
Without proper analysis, the potential for error is high.
Panic selling – this happens when asset prices fall rapidly.
It causes the trader to sell in a hurry, regardless of cause and effect.
Greed — Although greed is the main driver of the world, it is a very difficult emotion to control.
This is a threat to rational trading.
Deny mistakes – Some people don’t want to face up to mistakes that have been made, even if the market is clearly against them at the moment.
This is a recipe for disaster.
7. Keep a Trade log Write down every trade you make.
Make a note of your entry point and your reason for entering.
And other important information, including how much you gained or lost, and what happened to the market after that.
It may seem boring at first, but get into the habit of taking notes and stick with it.
As you gain access to a lot of information, you will see how much insight there is into your mistakes and right moves in the trading log.
Hope this trading guide can help you!
Foreign exchange trading platforms should also be able to convey objective and fair foreign exchange trading concepts from the perspective of investors.
