If you want to start doing trading in the best way, these tips are for you! In the following article we will share with you tips that have helped us in our trading careers. Let’s start!
Start small! One of the best tips.
When you are a beginner day 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.
Many times at the beginning you are lucky and you can win trades with $100 or $200. 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 blew up all your account trading!
So, make sure you start with small trades and use them as a great opportunity to learn the trade planning process.
Create a business plan.
When some people start trading, they follow what other people do. Then they pretend that it is working for them too when it is not. Many beginners really just follow chat alerts and that’s not how you make money on a stock market! That’s 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 if you see other people. 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’re new, make sure you add at least the commercial plan.
One of the best tips is to take trading seriously!
It is super important that you take trading as a serious career, and not a hobby. 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 your time 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, one of the best tips!
If you are a new trader when you start trading, you have to 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.
Having experience is better!
The fifth thing you should know is that experience in the market is the best teacher. In the stock market people with money gain experience and people with experience earn money. And it is something you should know if you are starting out in this trade, as this way you will have more time and patience to learn. There is no rush to learn how to trade, this will take months or years.
And as we always say, education is KEY, so try to learn as much as possible before you start!
Join communities of expert traders
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 came before us who have been successful, and not only successfully trading now but successfully resolving and overcoming previous losses.
In BLW we have two amazing communities you can join to make money, and share tips and knowledge with other people. Our BLW Signals Group for Forex https://www.blwsignalsgroup.com/ and our BLW Binary Master App for Binary Options https://www.blwbinarymasterapp.com/
Conclusion
Surround yourself with traders who are humble and focus on trade planning and risk management rather than the easy to make money. We hope that the information in this article is of great help and that you can put into practice these 6 tips that we shared with you!