Almost every trader’s first thought in the market is to make money.
Although there seem to be many different paths to success, the result is the same: loss, abandonment of resistance, exit from the market.
Many traders, in the early stages of trading, make mistakes that lead to considerable losses.
Here are some tips to help you get out of your initial rut.
1. Try Trading Without Learning Anything Most people start trading without a basic understanding of foreign exchange markets, national economies, etc.
This is obviously very dangerous because you can be hit at any time and you won‘t be able to cope with situations due to your lack of knowledge.
To be a successful trader in the long run, it is important to have a deep and unique understanding of various financial market concepts.
2. Don’t Pay too much attention to the news Trading markets can change direction at any time based on a piece of news or a rumor that emerges during the trading session.
It’s important to keep an eye on the market.
But the focus should be more on the news that will guide the long-term trend, rather than short-term factors such as ADP, non-farm data, etc.
We’re not saying that these numbers aren’t important at all, as market volatility tends to increase at the time of the data release and there may be very good trading opportunities, but the long-term direction of the market is not affected by short-term data and rumors.
3. Avoid loans once you have the confidence to make a profit, this blindness will make you inclined to borrow money, which is undoubtedly harmful, because it essentially increases your leverage, so if there is a problem in the state of mind, the probability of loss is relatively high if you have no money, please start from virtual transactions.
Once you’ve mastered trading, you can start trading with a small amount of money.
As long as you have the ability, the initial amount of money doesn’t really matter.
4. Know Enough about margin trading Margin can maximize profits, but it also greatly increases the risk of loss.
The margin ratio, the maintenance margin ratio, etc., need to be clear so that you can calculate your own risk.
5. No stop-losses As the name implies, stop-losses help minimize losses.
This can be set as soon as the order is opened, and when the price reaches the stop-loss price, your current position will be closed automatically.
This is a skill that every beginning trader must master, especially in a volatile market.
Setting a stop loss can help you effectively control your risk.
6. Trading against the trend is your most important friend when trading.
As every successful trader says, never trade against the trend because the chance of losing money is higher.
It is harder than you think to trade against the trend due to widening stops (such as falling support in a declining channel).
7. Only Trade during Free Time Most traders only trade during their free time, but it is important to observe the market throughout the market session.
Traders must wait for the correct time to enter and exit positions;
In a liquid market, for example, it is unwise to participate.
8. Not understanding technical indicators Technical indicators are essential to trading.
Some transactions use multiple indicators to aid judgment.
They look easy (and often accurate in hindsight), but they are very difficult during live trading hours.
The best way to do this is by learning a lot and using it in virtual transactions first.
Then, choose the metrics you like best and use them in the field.
9. Greed and Fear Neither greed nor fear is for traders.
Both will lead to impulsive decisions that could end up costing serious money.
Always be objective and avoid being impetuous.
10. Overconfidence Always respect the market and accept failure.
Stubbornness when lost can lead to further crisis.
One day you hit the big time with one analytics method, but the next day it’s a whole new market.
Be rational when making decisions.
Trading, at its core, is about self-cultivation.
To be financially successful, you must be prepared to meet the demands of the market — change and discipline!
And those self-destructive habits in our daily lives can prevent us from getting what is already ours in life.
Trading, too.
