Trading is becoming a very popular profession across the globe. Every day lots of new Aussie traders are joining this industry in the hope of making a good career. The thinking and visions of each trader are different than others as a result their trading preferences are also different than one another. Some likes to trade in a shorter time frame and some like to keep open trade for a longer period to have a good outcome. This article might come handy as we will highlight some of the most important trading tips.
So for rushing into the complex world of trading strategy first you need to have a clear knowledge about the basics of the trading strategy.
- Money managing: When you are thinking about invest money in trading then at first you must need to decide a certain portion which you are ready to lose. Successful traders will never risk more than 2% of their trading balance per trade. So you don’t need to consider more than 2% of the risk per trade.
- Manage your time: You will never find the good result from trading if you just give 1 to 2 hours for trading rather than you must need to keep a constant eye in the market if you want to make fortune from trading.
- Start low: When you just finished your learning and demo trading period then you might think about investing money in your account. But we suggest you not to invest a big amount of capital in the beginning and once you’re started to make profit constantly then you might think about investing more money in trading. Even when you start trading with a real account then try to go for making small profits rather than going after big fish in the beginning.
- Education: For making money from the trading market you must need to know everything about this market. Always you have to keep yourself up to date with all the market news and announcement and have to predict how it can affect the market movements.
- Consistency: The hardest part of this trading world is to control your emotion when you want to burst into tears. In your trading period, certain things like losing trade can occur and because of that, you might lose some money which is not a good thing. But you must need to have a clear mind rather than trying to recover losses from the next trade. You have to be consistent and should do trading according to your strategy rather than breaking the rules. Sign up for a free trial at Saxo and see if you can trade in demo paltfrom by maintaining consistency.
- Demo account: Try to take advantage of demo accounts that are provided by brokers and try to your trading strategy while you are trading with that. Once your strategy giving you a 60% winning rate only then think about joining the trading market with a real account.
- Tools: Almost all the trading platforms provide several trading tools and indicators which are very useful for traders to find out the potential entry and exit points for a trade. So you just need to know all the things about each tool and in between these tools you must need to make a set of tools and indicators that will help you to find your trades and also become the master of those tools.
- Keep a journal: Maintaining a trading journal is a must if you are trying to make a full-proof strategy for your trading. A trading journal is where traders make a note about the reason for each trade and the reason behind the results. So if a traders review his journal once in a week he will be able to find out what had gone wrong in the losing trade and where he needs to work more to reduce the losses. By doing so a trader can build a perfect strategy for himself.
So, if you are in the beginner level, you should always follow the above mentioned tips to protect your capital.