Trading Tips You May Want to Write Down

In this article I will share with you a few tips about Forex and stocks trading that you may want to write down as they are very useful to any trader no matter if you're a beginner or an experienced trader. These tips and important rules are the basic rules but that is what makes them ones not to be ignored because this is the foundation of any trading platform and without these rules you have no chance succeeding making money from Forex Capital Markets.

Trading Tips You May Want to Write Down
Yes, there are many stocks and Forex trading strategies and sooner or later you'll adapt your own strategies that suit your ways of trade, but for now remember the following rules and tips to begin with and move on from there. Get a pen and paper and start writing…

Never Trade with All Your Money

I bet you're saying to yourself now that you'll never trade with all your money but there's more to that. I want you to realize that you should trade with an amount of money you can sleep at night no matter if you profit from it or happen to lose it. Yes, there will be days of bad trades, there will be ups and downs always but with time you'll learn to profit more than you lose and thus always make money, but remember that for now your trading should be with an amount you are "willing to lose" and I say it because if you happen to lose it than it's fine and no big deal, you knew this could happen. Once you have that amount in your mind carry on…

Never Trade with Your Gut

Trading stocks and Forex is not gambling my friends and people who say it have no idea what they're talking about. They either never traded once in their lives or lost their money not trading smart and looking to blame everyone else. Trading takes time and learning but above all it is analytical and psychological at the same time. When you come to place your next trade you've done your home work and you know when to buy and when to sell, everything is calculated and known to you, you work with your mind, you buy once a certain point has been reached and sell the same way, you never ever gamble and hope for things to go your way, you plan them and once they happen you enter or exit a position – remember this, trading with your mind and never with your gut no matter what your feelings tell you, it's your money to lose so trade smart.

Know When to Enter and Exit a Position

Sometimes the market is not clear and difficult to read and anticipate and that is why there are times when you should take your profit home even if it's small because if not you may lose not only the profit but the trade itself. The same goes knowing when to cut your losses, never hope for a stock or trade to bounce back to the original point you entered it, set a stop-loss and immediately exit a trade once it reaches it and you lost the minimal amount you set for yourself prior to entering the trade.

These are just a few important and basic rules you should know and follow if you want to trade smart and control your bankroll. Once you follow these rules and tips you can move on to more advanced strategies of trade and other tips about how to read charts and so on but never underestimate the basics of trading – this is all where it starts and where it can end for some people who don't follow these rules first.

1 comments:

  1. If we want to earn money then there investment is the only legal way and forex is one of the best way among all these . So that was quite interesting trading tips. I really enjoyed the post ....thanks for sharing :)

    ReplyDelete