Everyone who starts trading wants to be a successful trader. But some of the novice traders actually lose a lot of money in an instant, generally because of the wrong way. This article provides various suggestions so that you do not become one of these traders. Although these various suggestions do not guarantee that you will become a successful trader, at least they can help you not easily lose money when trading.
Here are 10 suggestions for beginner traders, to be free from losses and optimize your strength in trading stocks, forex, or gold.
1. Have the right knowledge before trading
Beginner traders should increase their knowledge before starting a trader. People who start trading are generally too enthusiastic, immediately trade, because they see trading as easy. Without proper knowledge it is like going to war without weapons. As a result, the age of his account only lasts as long as corn or shorter. Traders who do not want to learn, will pay dearly with the end of trading capital.
The important thing to pay attention to is not arbitrary knowledge that you need to seek, but knowledge about correct trading. Many beginners even learn the wrong way about trading. Resulting in the creation of a wrong mindset about trading. In his mind trading is easy, trading is a quick step to get rich, trading is only analytical and so on. If you want to learn about trading, it is recommended to look for a bona fide source. It is recommended to read the trading tutorial for those who are just starting out.
2. Trade on the right instrument
You have to choose what you want to trade. Trade equally according to strength and risk that can be taken. I have been contacted by several people who want to learn options trading. When I asked if I knew stocks, I was answered I really didn’t understand. This is silly. Even though options are actually derivatives of stocks. Don’t know stocks yet but want to trade options right away. It’s the same as just wanting to learn boxing, but wanting to fight a heavyweight champion.
Bear battered. Some people like this, want to directly trade forex, gold, indices, but don’t understand if their strength has not been able to trade there. For those who are just starting out, it is recommended to trade stocks first, only if you have stable profits you can move to forex, then gold, then index. Beginners who trade stocks also need to choose which stock to trade. For those who are just starting out, it is recommended to trade in blue chip stocks which have relatively little fluctuation. If you are just a beginner stock trader, you like trading fried stocks, so be prepared to make a lot of deposits and rarely withdraw.
3. Determine the right broker
Selection of brokers is important, because especially for many forex brokers who are naughty. It’s a shame, after trading tired, the money was taken away by the broker. Check the reputation of the broker, its validity, where it is recorded. Then just check the facilities and features provided. Is the software enjoyable to use, the features are complete, and so on. Match the service broker to your trading style.
4. Start with a small amount of funds
One of the best tips for trading is to start small. After the new stable profit more. A large amount of funds does not guarantee easier trading. The same. If you can’t trade well, a million, billion, trillion will still run out.
5. Apply reality
Reality on trading results. You can’t think about trading for living first. Unless you’re very profitable, don’t expect to change your trading capital from $100 to $100,000 any time soon. In fact, the real concentration of trading is survival. If you expect too high, you will only be sad, frustrated, insistent and ultimately unsuccessful. From the moment you start trading, think and act on reality (unless you are very profitable). Too bad no one is very lucky.
6. Have a Trading Mechanism
Traders should have an idea or trading mechanism, to 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 us. The trading mechanism you have must be complete, starting from analytical techniques, money and risk management.
After having a trading mechanism, traders must be disciplined to run it. Unfortunately, this is often not there. The failure of traders usually arises because they do not comply with the trading mechanism that has been decided. Especially regarding the provisions of the market exit or cut loss. Generally, traders don’t want to cut losses, resulting in losses that accumulate super bruises. 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. See Trading Psychology
Many traders underestimate the psychological factor in trading. Even though emotions that are not awakened can damage trading performance. The emotions of greed and fear really are