Are good traders born or made?
Well, as with everything, some people have simply been born under a lucky star while others may need to work their way to the top. Whatever the case, trading opens you a door to a whole new world, waiting to be explored.
So, apart from the basics of choosing a good and regulated broker,
studying basic trading terms and starting off with a demo account, let's have a
look at the top 5 trading tips that beginner traders should follow towards
their trading journey:
1. Know your market
Before you start trading CFDs, do a simple research on your market. Either you choose forex, stocks, cryptos, indices or commodities, there are some global events that may influence the markets and you'll definitely need to keep an eye on them.
2. Set up your strategy
Another important tip is to establish your own trading strategy. Study your market, observe it closely and establish certain patterns that you see repeating themselves. Then, decide on your strategy, taking into consideration factors such as the time and frequency of your trading, any indicators you'll be using, your risk/reward ratio etc.
3. Manage your capital
Set a specific amount of money that you are willing to risk. Once you make your deposit, just pretend that these funds never existed in your life. This is how you will understand how much you are actually willing to lose but also how much you may gain if the markets go in your favour.
4. Monitor your trades
Keep an eye on your positions at all times. Once you open them, it doesn't mean that you should leave them to their luck. The market moves and changes 24 hours a day and so do your positions.
5. Be disciplined
Stick to your initial trading plan and don't avert away from it. Your trades may not be profitable but don't fall into the trap of instantly closing them. Set your stop losses and take profits and just follow your strategy.
Here you go - 5 basic tips to get you started. Trading is an ongoing process and the way to success varies from person to person. Don't aim to get "rich" quickly - that's the trap you need to avoid. Stay calm, focused and progress will come your way.
This article was submitted by ForexTB.
