Today we’ll tell you how to avoid going broke following these tips! We’ll give you 10 ways to improve your trading for this 2023, we guarantee that you will learn something out of the ordinary.
We do not doubt that 2022 was one of the toughest years for trading. For traders of all levels it is not only the worst stock market since 2008. Each event such as the FED meetings, or the CPI inflation, these data really rock the market in either direction and of course traders love this kind of volatility. But anyone would be lying if we told you it was easy all year long! So, let’s look at 10 ways to improve trading for 2023!
Be sure how you are trading to avoid being broke!
Make sure you are trading and investing in separate accounts if you use a different broker or multiple accounts under the same broker. Why? Because this is very important, especially for beginner traders. The more green you see, the more common trading is for your long-term holds to report your trades. Or, your trades to report your long-term holds. If you’re looking at a position looking at a stock position that’s -40%, but you’re also trying to improve your trades. It’s very easy for you to look at that thing that’s below 40% and lose confidence in your trades.
When you are trading you want to start with a clean slate, remember that trading and investing are two different things. So, you might have a long-term business, you might have high conviction in it, you might not want to sell it for investment purposes because you’re trying to do some short term trading. So, it’s very easy to look at that long term hold and be swayed by it.
Any amount you can do is good to avoid being broke!
The next tip seems pretty obvious. All the time you can meet 500, 500 can be converted to whatever amount. And really if you’re going to trade or do anything in 2023 especially if you’re trying to buy assets or whatever.
You need cash, which means you need a regular income. A small lump sum without bringing in any more cash, and you’re trying to turn it into something bigger. Guess what? You’re going to be doing with that little lump sum. So, you’re going to be protecting it like is your baby tand. So, whatever amount is lost from that little sum lump sum is going to start playing on your emotions.
And then? Then you are going to be making irrational decisions or just giving up on anyone completely. And we mean no one got rich trading a small lump sum! You need the security of knowing that you bring in additional money.
Have business view
The next tip is where we start to get into some essential details of trading. If you have a strategy, make sure you are testing it again. Which means make sure it’s proven to be iron. How do you do this?
Go back and look at your trades, what is your win rate what is your risk to reward ratio, and so on. If you don’t have these stats handy take a weekend and go back and look at every trade that was taken with this strategy that you are on entered. Also, what was the win rate and what was the risk-reward ratio for each individual trade.
Find a strategy so you can avoid being broke!
Next tip, if you don’t have a proven strategy, or after further testing you find that your strategy was not optimal, what should you do? Get rid of all the indicators you have on your chart, they are useless to you unless proven otherwise!
Get as much education as you can. Find the best strategy that adjusts to your needs. Then, you’ll see nice profits!
How much to risk per trade?
One more piece of advice is that you have to learn how much to risk per trade overall. You don’t want to hold more than one to two percent of your portfolio value on one trade.
The more confident you are with the strategy, the more you can raise. Some traders can go with 5 or 10% especially in very high conviction plays with confluence, from our point of view you can even trade with 1%.
A very important point that also has to do with risk. And this is risk for reward. Are you measuring your risk for reward? In every trade there is a tool and trade view that allows you to do this. Yeah, whether it is for a short or long position where your limit stop is and how much you are risking.
A one-to-one risk-reward meaning put in 5 dollars to win a potential 5 dollars, but this is only the minimum, but it allows for even bigger trades. But that’s if you trade fewer times. So, make sure to choose a good risk-reward ratio on your trades.
You must have time for trading!
If you can’t sit in front of your computer all day, then obviously you can’t day trade. At the moment you could still take time to learn how to set up, for when you can change your work hours, but it’s going to be very difficult to be a successful trader.
So, if you have a day job that is really restrictive and won’t allow you to trade or study at any time during the day, what you should do? Then you have no choice but to change or even consider changing your job. It really depends on your objectives, but you have to make sure that your time aligns with what you want to do in terms of trading.
Choose a real broker to avoid being broke
Get a real broker, a trustworthy one! In this page, you’ll find a lot of good reviews of brokers you can use both for binary options and Forex.
Well, so we hope that these tips can really help you on your trading career! And if you like this, don’t forget to share it with your friends.