Trading is simple but not easy. Learning how to trade successfully can be complicated for beginners. Most people want to get rich overnight, no matter how unrealistic it may sound, it is true with many trading beginners.
The world of Markets trading can be a little overwhelming, especially if you are new to the game, and don't know the rules yet. You need to dip your toes in before you go any deeper. The good news is that we've got your back! We've compiled a list of 20 Trading tips for beginners to help you along your trading journey in 2020. If you already have experience with Forex trading, it's always good to remained yourself the basics.
1. Choose The Right Broker Choosing the right broker is half the battle and if you do it right you are guaranteed a 50% chance to trading success. Take your time to check reviews and recommendations. That what Redick Marketing has done so you don't have to go through the hustle of trying out all the brokers in existence. We have researched, investigated, tested and compiled a list of the best trusted brokers to trade with in 2020. Our professional team of traders and investment advisor can assist you in choosing the best broker that suits your individual trading personality. Remember, there are lots of fake brokers out there who will only stand in your way. We understand the importance of investment security and would never refer our clients to a broker were are not confident about their authorisation and licence.
2. Create Your Own Strategy Trading without a strategy is more like driving without a seat bent, and you wouldn't what to risk your life, so why would you with your investments. No list or lessons of trading tips is complete if it doesn't includes talking about strategies. One of the most common mistakes beginner traders make is not creating an action plan. Figure out what you want to get out of trading and add it to your list of goals, then figure out how to get there that would be your action plan. Have a clear end goal in mind of what exactly do you want to achieve from trading, this will help with your trading discipline.
3. Learn, Learn and Learn Learn, learn and learn. This is probably one of the greatest investment to your trading and life, Learning. Its true we learn until we die and with trading learning is very important. As with every new practical learning activity, trading requires you to start with the basics, and move slowly until you understand the playing field. Start by investing small sums of money, and keep in mind the old adage 'slow but steady wins the race'. True you won't get rich trading small accounts but it is very essential to building consistency and discipline in your trading. The main goal of investing is to make your money grow in the future and great investments do not always pay overnight so be patient and focus on learning through out your journey.
4. Control Your Emotions Many trading beginners get carried away by their emotions, don't let them carry you away. This one of the most difficult parts of trading, especially when you have had a long on going losing streak. But keeping your head up will help you stay rational, so you can make competent choices and take only the trades you are at least 60% right about. I know 60% might seem risky but with the financial markets you can never be 100% sure of which direction the market will take. Whenever you let your emotions get the better of you, you expose yourself to unnecessary risks. Trading under stress generally leads to irrational decisions, and in live trading, that will cost you money.
5. Practice Makes Perfect You are unlikely to succeed at anything on your first try, hence practising and not giving up is key to success. Only constant trading practice can yield consistently and profitable trading outcomes. But you probably don't want to lose money while learning the basics, right? Luckily for you, trading on a demo account costs nothing to set-up, and is free to use!
6. Mastering Psychology is Key Every trader is a psychologist at heart. When you're planning your next move, you have to analyse market movements and review your own psychology. You need to ask yourself questions such as:
Did I show signs of confirmation bias?
Did I make a trade out of frustration?
What made me choose that particular trade?
Mastering your psychology will protect you from many losses along the trading development path. Not even trading tips and tricks can guarantee you success. When you decide to become a trader, you should have already accepted the possibility of failure. In case you didn't – here's a reality check. You won't make profitable trades 100% of the time. Be realistic about your trading methods and the goals you want to achieve.
7. Patience Patience is key to spotting the best and well analysed entry and exit points. True success is never instantaneous it takes time, patience and consistency. Success is the result of consistent work and planning your moves carefully. Many trading beginners look for an easy, fast path to being rich with trading. Well don't bother in the real trading world – it doesn't exist!
8. Don't Over-trade A great trading tip to follow daily is to over-trade take sometime time away from your computer, especially during stressful trading sessions. When you have several computer windows open and multiple data streams to analyse, you can naturally feel pressured. In this case, it's better to take a break and walk away to relax and freshen up the brain. Give yourself some time to gather your thoughts together. When you return you will be calmer and ready to process the ever changing chart information. 9. Planning Forex trading is not like gambling – it's a strategic game, with a strategic plan you are most likely to loss the game. Carefully analyse your chart information and calculate your next move before you act. Our professionals can help you with developing a good and detailed custom tailored trading plan. To formulate your own plan you should ask yourself the following questions:
Have I accounted for the possibility that I may lose? Be open to losing and work towards improving and consistency building.
Have a plan B for whatever outcomes you get. Now this is quite important because if you lose your investment you need a plan on how to make it back.
10. Know the Charts The chart has a lot of information and there are your key to trading success. If you can read, analyse, understand and do what the charts say, you will be profitable. You will be trading on many different markets and will need to quickly understand the information you analyse for each trade. There are numerous tools available to traders that make trading easier, but nothing is more time-efficient than charts. Charts provide you with fast access to numerically-heavy data in the form of a simple visual, so you don't have to scroll through it. We encourage you to learn more about market charts and how to use them in your trading decisions.
11. Proper Risk Management Skills
Trading is a risk on its own and naked trading is one huge risk you don't want to be a victim of. We often advise our clients to take into consideration all major risk minimization before trading. These include placing of stop-loss to ensure that if the market does not go as intended you can loss only a limited amount other than losing everything. A correctly placed stop-loss eliminates the risk of losing all of your money on a single bad trade. The stop-loss is especially beneficial when you don't have the ability to close positions manually.
12. Analyse Your Trades Analyse your trades both the good and bad trades. Try to draw as much details of what influenced or caused the outcome of those trades. This will help you monitor your performance and find patterns within your trading. Basically, it's easier to learn from past mistakes when they are jotted down. Keeping a journal also improves your discipline and will help you spot any trends in your trading. Be sure to write down everything and be honest about it, as you have to be your own biggest critic at the end of the day.
12. Experiment You probably thinking of, With what money should I experiment with. Well, as I mentioned earlier about demo-accounts, utilise those to improve your trading and try different strategies and markets. There are many brokers who would love to have you try out their free demo and experimenting. We have published a few banners to brokers offering demo-accounts and should you require more information on which broker to try contact us we will refer you to only the best broker to suit your trading requirements.
Conclusion
Don't let the thought of losing all your investment with trading frighten you into giving up, we are here to assist you when it feels like the odds are against you. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.If you are inspired and feel you are ready to start your trading journey,our investment advisors can assist you at no cost! contact us.