Everyone who starts trading wants to be a successful trader. But many of the novice traders lose a lot of money in a short period of time, usually because of a misstep. This article provides various suggestions so that you don’t become one of these traders. Although these suggestions do not guarantee that you will become a successful trader, they can at least help you not to lose money easily when trading. Here are 10 suggestions for novice traders, in order to avoid catastrophic losses and maximize your potential in trading stocks, forex or gold.
1. Have the right knowledge before trading
Beginner traders should increase their knowledge before starting to trade. People who start trading are usually too excited, immediately trade, because they think trading is easy. Without proper knowledge it is like going to war without weapons. As a result, the life of the account only lasts as long as corn or shorter. Traders who do not want to learn, will pay dearly when trading capital runs out. What you need to pay attention to is not just any knowledge that you should seek, but knowledge about the right trading. Many beginners actually get lost in learning about trading. As a result, the wrong mindset is also formed about trading. In his mind trading is easy, trading is a quick way to get rich, trading is just analysis and so on. If you want to learn about trading it is advisable to look for a bona fide source.Recommended reading trading guide for beginners.
2. Trading on the right instruments
You have to choose what to trade. Trade according to ability and risk that can be taken. I have been contacted by many people who want to learn options trading. When I asked if he knew the stock, he answered that he didn’t know at all. This is silly. Whereas options are derivatives of stocks. Don’t know stocks yet but want to trade options right away. It was the same as wanting to learn boxing, but wanting to fight a heavyweight champion. Guaranteed to crack. Many people like this, want to directly trade forex, gold, indices, but don’t know that their abilities are still not able to trade there. For beginners, it is recommended to trade stocks first, then when you have consistent profits you can switch to forex, then gold, then indexes. Beginners who trade stocks also need to choose which stock to trade. For beginners, it is recommended to trade in blue chip stocks which are relatively not volatile.If you’re just a beginner stock trader, you like trading fried stocks, so get ready to make lots of deposits and rarely withdraw.
3. Choose the right
broker The selection of a broker is very important, because especially for many forex brokers who are naughty. It’s a shame, I’m tired of trading, the money is taken away by the broker. Check the track record of the broker, its legality, where it is registered. After that, just check the facilities and features provided. Is the software easy to use, complete features, and so on. Adapt broker services to your trading style.
4. Start with a small amount of funds
One of the best tips for trading is to start with a small amount of funds. After a new consistent profit added. A large amount of funds does not guarantee easier trading. Just the same. If you can’t trade well, using a million, billion, trillion will still run out.
5. Be realistic Be realistic
about trading results. Don’t think about trading for living just yet. Unless you’re extremely lucky, don’t expect to turn $100 trading capital into $100,000 in an instant. Precisely the real focus of trading is survival. If you expect too high, you will only be disappointed, frustrated, desperate and ultimately fail. Right from the start of trading, think and be realistic (unless you are very, very lucky). Unfortunately no one is very, very lucky.
6. Have a Trading System
Traders should have a trading plan or system , so they know when to enter and exit the market. As a result, the trader is not confused, and is not easily swayed by the market. He has faith in himself. The trading system you have must be complete, starting from analysis techniques, money and risk management.
7. Discipline
After having a trading system, traders must be disciplined to run it. Unfortunately, this is often not the case. Trader failures generally occur because they do not comply with a predetermined trading system. Especially regarding the rules of market exit or cut loss. Most traders don’t want to cut losses, as a result, losses pile up super swelling. The trader ends up with a margin call or the money runs out.Do you want to be a disciplined trader or an emotional trader?
8. Pay Attention to Trading Psychology
Many traders underestimatethe psychological aspects of trading . Though emotions that are not maintained can destroy trading performance. The emotions of greed and fear greatly affect trading performance. Many trading cases that were originally smooth, ended up falling apart due to emotional factors.
9. Record Successes and Failures
Record trading track records, learn what can be improved. A successful trader usually keeps a log, a journal of trading activity in which he carefully figures out what worked and what didn’t. By using the journal, you will know the weaknesses that need to be corrected.
10. If you fail, try again in a better way.
Becoming a successful trader is an evolution, it takes a long process and learning. Many traders fail before becoming successful. If you fail, you just have to try again and do better. Use trading journals and learning to improve trading quality. Don’t make the same mistake.