When you first start to trade or invest in any market, there is going to be a bit of a learning curve involved. While some of that learning curve will be specific to the market itself, a lot of it is more general and involves learning what you should be doing so that you can make successful trades. Of course at the same time it is also important to learn what you should avoid too.
Avoid making emotional decisions
As a rule of thumb this should be at the top of your list. Emotional decisions are a huge problem for all traders and as much as you may be tempted to go with your gut – don’t.
In particular, when your trades aren’t working out any have depreciated in price it is important that you don’t hang on hoping that they will appreciate once again. Instead, stick to your initial analysis of the trade (and presumably the stop-loss order that you’d placed), bite the bullet, and get out of it.
Do not make impulsive trades without proper research
Did you just hear that gold was hot right now and feel compelled to immediately jump on board the bandwagon? Trading impulsively is a bad idea, and if you jump every time you hear something is hot – you’re going to be jumping a lot.
If you really feel that something you hear may be true – do the research. Find out more about the current market conditions, potential factors that could influence its price, and make an informed trade that is backed by proper research.
Stay away from get rich quick schemes
The only thing worse than impulsive or emotional trades are get rich quick schemes. Unfortunately these are all too common and often involve over the top claims that promise you will be a millionaire – practically overnight because of a ‘foolproof’ trading strategy, stock tip (which would be illegal, if true), and so on.
Assuming something sounds too good to be true – it probably is. Stick to that and you’ll probably be able to dodge all the get rich quick schemes that come your way and can focus on real methods of successfully trading.
Never stop learning
Sometimes after you’ve had a bit of success trading you may feel that you’ve learned enough and can simply rely on what you know. That isn’t the case however, and the most successful traders are the ones who keep learning – constantly.
While you may have found a way to be successful at trading in the current market climate – that will change. To be successful on a consistent basis you need to be staying ahead of the curve and the only way to do that is to never stop learning.
By making sure you avoid these four things, you’ll be a much better trader overall. All you need to do is head over to etxcapital.co.uk and decide on a market that you’d like to start to trade on. Considering you have so many options open to you – odds are you’ll be able to find one that you feel looks interesting.