Tuesday, 1 August 2017

Five Tricks To Instantly Become A Better Trader

Posted by Valentine at 02:37 Labels:

We have spoken many times about the enormous risks associated to those strategies that promise quick profitability and that nowadays are spreaded all over the internet.

While you might find the title of this article as an actual promise of quick success, it’s not. Yeap… truth does not always settles the best, but trust me, you should keep reading.

Rather than tricks, let’s better talk about habits. Because just like fast food, fast money doesn’t cut it in the long term. So let’s focus on five habits that highly successful traders count on.

1 - Adjust your trading style to your personality

If you are the conservative type, don’t try to be Gordon Gekko in your first trading week. Stick to the known and safe ground. Trading is not a casino. It’s about making money using logic and actual knowledge that would help understand where markets are moving.

2 - Hold on to risk management

Never forget about the 1 percent rule. For each position you open, you shouldn’t be risking more than 1 percent of your capital. As simple as it gets. But this simple rule could save your a huge headache sometime, so you better respect it as pro traders do.

3 - Make routine your best friend

When you get into a new job, it takes hours and hours of repeating same processes in order to become an expert on it. Trading is no different. If you want to make trading as smoothly as possible, creating a routine definitely be a good way to start.

4 - Learn from your mistakes

If you are new in this business, you would have probably heard that successful traders lost lots of money and blew many accounts before turning into trading leaders. And yes, it’s true indeed. But you shouldn’t necessarily learn the hard way by losing all your capital, instead you can protect your investments by setting stop loss orders and managing your risks effectively.

5 - Find time to switch off trading

Do you think Warren Buffet never sleeps or goes out for dinner? Wrong. Even the top investors in the world find time for themselves, and so should you. Whatever works for you to relax, sounds good. Remember, you aim at making money work for you, not the other way around.

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