If you’re a beginner these tips are super important for you! In the following article we will look at 6 of the best tips that you can follow if you are a beginner trader. All of these tips helped us when we started our trading career, surely they will work for you too!
Start small if you are a beginner!
When you are a beginner trader, you think that the more shares you buy, the more money you will make. This is something that does not make sense, if you just bought 1000 shares of a single share you would earn much more than if you had only bought 10 shares. Intuitively, many new traders would think the same way, but in the experience of professional traders, this is a disastrous way to start day trading.
Believing that you could make a lot more money by doing bigger trades, wanting to participate in all trades. So, having a lucky break at the start, beginners believe that trading is that easy and effortless. But what happens when luck runs out? You lost your money, and you blew up your accounts. So, make sure you start with small trades if you are a beginner. You must use them as a great opportunity to learn the trade planning process.
Have a business plan if you are a beginner trader!
Many of the beginner traders, when they start trading, follow what other people are doing. They pretend that everything is going well when it is the opposite. Many beginners really just follow chat alerts and this is not how you make money in a stock market. This is how others make money with you. If your decision is going to be to buy or sell that decision, you don’t have to make it because other people tell you to. So, make sure you have a trading plan and ask yourself the following, what is the reason for entering this trade? Is there good or bad news? Stocks have a low float and are they very high? You must have a good entrance where it is a good place to buy. So, if you are a beginner trader, make sure to add the trading plan as a minimum.
Take trading seriously if you are a beginner!
The third important topic takes trading as a serious career, and not as a hobby or a game. There are a lot of people out there trying to sell you an idea that it’s just a lifestyle, and that you can spend sitting on the beach lounging and making millions of dollars when in reality you’re not. There are many new traders that have joined the market due to the pandemic since it is possible to work from home and in front of computers. But most of the new traders are not taking it as a formal business, they are taking it as a hobby. So, the most important thing about day trading if you are willing to trade every day, is that you compete with the best people in the world to make money because trading is real competition.
Focus on risk
If you are a new trader when you start trading, you must focus on risk, before reward. Or if you only think about the profits, what will happen is that you lose the money of the day. However, if you focus on the planning process of your trades and trading, your plan should be losing less than you are winning. So, risk management and having a solid trading plan are essential for a trader.
Join communities with experts!
You must find a community of traders. If you are new you will have to find mentors and peers to learn, there are hours of videos on YouTube, but it is not the same as trading in real time. Find friends who take the time to walk you through the thought process behind the trading plans, why they went in, why they went out and where the risk levels were and so on. This is perhaps the most valuable lesson that can be learned from experienced people, learning what they think before, during and after they lose or win a trade. The good news about trading is that there are experienced traders who have come before us who have been successful, and not only successfully trading now, but successfully resolving and overcoming previous losses.
One of the best communities you can join is the BLW Signals Group. This is a community of Forex traders who will send you only the best opportunities they find in the Forex Market. The prices are super accessible! https://www.blwsignalsgroup.com/
The most important thing at the end of it all is that you are surrounded by traders who are humble and focused on planning and risk management, and not focused on making easy money. We hope that these tips that we share with you are of great help and that you can continue training as a professional.