The internet is a heaven of trading information. It is a mecca for acquiring information about markets, brokers, financial education, and trading strategies. This is a great thing because it gives everyone who has discipline and patience to look for a trading system applicable for them. With the amount of information online, reliable or not, it is ideal to put in mind that no one actually care about your trading success but you. Given this fact, you have to remember some aspect while on your way towards becoming a better trader through online resources.
You can always rely on trading articles when you need to have peace of mind about something. With such articles, you can easily get details about particular themes. Yes, there are many contents out there that are equally compelling but you have ensure that information is relevant and can be useful for you trading venture. You do not need an entire book to help you understand how you can implement your chosen trading strategy. Articles can typically give you the bread and butter of trading. What you need to do after reading such articles is to analyze bit by bit and then apply them one by one slowly but surely.
This goes hand in hand with the tip above. When you want to rely on trading articles for your trading knowledge, you have to make sure that the authors are reliable as well. You have to see to it that authors are also traders themselves. You might also have to pay attention on the language and jargon that the author uses. There are authors out there with specific target audience so make sure that his or her article is geared towards you.
Sometimes it is good to learn on your own. But when it comes to trading, it is mostly ideal to learn from the experts. This is why you need to look for a trading mentor. You can find many mentors online who are more than willing to guide you on your journey. Most mentors greatly expect their students to ask lots of questions and work very hard. Mentors will not push you if you seem uninterested. It is up to you if you want to submit a part of your success to mentors. You can scan online to look for the best trading mentors there is. Just make sure to review their profile and success rates.
There are many strategies for trading. However, not all strategies work for everyone. What may work for you may not work for others. This may be hard to grasp but it takes courage to have a trial and error for notable strategies. But any strategy’s efficiency actually depends on you capability to implement it. for example, you may be the kind of trader who easily gets bored and likes to trade a lot and prefer strategies that offer numerous trade signals. This does not work for other traders because they prefer stress free trading environments. Thus, you have to consider the fact that not everything works for everyone even in the trading scenario.
TEST, ASSES AND THEN IMPLEMENT
It is always ideal to test, assess, then implement. Before you use anything new such as a trading strategy, you have to test it first before making real trades. The best way to do so is to register in a demo account. There are many trading sites and even brokers who offer demo accounts for free. Here you can test your strategy and see if it works. If it does not work then you can retest it until good results are generated. When assessment is done, you are now ready to implement your strategy in the real world.
Summing it up, there are many misnomers out there about trading effectively. Generally, it is up to you to understand what is good or bad for you. Put in mind that most of the details you find online are just puzzle pieces that you too need to fill up. You then need to put the pieces together so that you can have a successful game plan. Use a demo account first and then when you aer confident enough, you can then use real money.
Most of you would be guilty to having lousy strategies on your first few months. You may have picked your strategies online and then tried it. However, you may have noticed that no matter what strategy you use there are typically three things in common which are stochastic oscillator, MACD, and momentum indicator. All of these are necessary for you to do your trades. When these elements match in a downward manner above the chart you most likely take Put. One the contrary, when they match an upward direction at charts bottom part, you will likely take Call. At some points of your amateur trading life, you may not have paid any attention to the real price chart due to the fact that you simply do not how to read it. Naturally, such scheme was no just inefficient but also very off base towards getting obvious insights on how the market functions.
Trading is not a simple task. In order to do it properly, you have to be knowledgeable about its market dynamics. Nonetheless, you do not have to look for some complex strategies and articles to fully understand it. There are some simple ones that easily allow you and a seller to interact to have a price movement. You can also have an overall strategy that is simply based on market resistance and support levels. You may also consider market and trend patterns to help you with your market decisions. However, you have to put in mind that not every trade strategy works for everyone because each person is unique and decision making skills are also unique. But, it is advisable that traders, new and old ones, to gear more to levels of support and resistance and price action as trading basis. When you trade properly, this can be kept clean and simple and efficient.
HERE ARE SOME OTHER TIPS THAT CAN HELP YOU SIMPLIFY TRADING:
1.HAVING A DIRT FREE TRADING ATMOSPHERE
It is always nice to work in a clean space. Trading needs a lot of room for concentration that is why if you want to trade well, you have to concentrate well. With a clean and ideal trading environment you can plan your moves with a peaceful mind. Make sure to have a clean workspace or trading room. Don’t bog your mind with all the clutter around you. Instead you can arrange your desk and put only the things that you need most such as your computer, pen, and paper, and your trading journal if you have one. It has always been a fact that your environment always affects your mindset. Trading is easy but having a good trading routine is essential. Part of that routine would have to maintaining a good environment.
2. HAVE A CONSTANT MONEY MANAGEMENT
You must have an upper ceiling that you are willing to risk on individual trades. You will know this if you take the money that you can lose safely to trading and then multiply it to a smaller percentage such as two percent or lesser. This does not actually mean one or two percent of your balance. As a matter of fact, you can deposit to as much as your first trade’s first amount. When you bet smaller amounts of cash and having just minimum deposits then that is absolutely fine. You don’t actually have to leave lots of money to the broker. Just deposit what you need. You will basically have that good feeling when you have a smaller amount of cash with you. This way you can ease your tension from trading real money.
3. STICK WITH SIMILIAR ASSETS
A skill that you need to hone in trading is understanding your assets. It is ideal to have more understanding in a one or a few assets than skipping from asset to another. Moreover, if it’s possible, you must stick o major currency pairs such as GBP/USD, EUR/USD. USD/AUD, and JPY/USD. There is lesser liquid market with other pairs or exotic pairs. Trading with these exotic pairs can bring turbulence to price movements and these are of course quite hard to achieve a successful trade.
4. STICK WITH A SIMILIAR TIME FRAME
In trading, it is pretty much ideal to have a similar time frame. For example, when you have ten to five minute expiries, you may be dealing with a five minute chart. Yes, one minute expiries may work but it can be filled with noise and your viewing window may be limited making it quite hard to trade well. It is only advisable to go to the one minute chart if you want to have a closer perspective of hose prices are acting.
No matter how long you have been in the trading industry, sometimes you tend to deviate from your routine. You may have a trading plan and some strategies but probably because of boredom you go against them. There are times that you skip trades and there are times that you feel you are taking the right trades but end up failing. No matter what these problem are or what are the things that cause it, they have to be controlled immediately.
Trading badly once or twice is an issue in itself but it does not have to happen all over again in many trading sessions to come. You have to put in mind that trading is a business and that if you have bad business practices you have to stop them the moment you notice them happening. There is always a chance that the same thing will happen again but every time it will happen you have to stop it before it becomes worst. This is why you need to understand some tips that can help you get rid of the same mistakes or same bad habits over and over again. This can actually help your bank account remain healthy.
BE AWARE OF THE ISSUE
There are many trading issues out there but even when you have a full proof plan that you are following there are still problems that you will most likely face. These problems could include not trading a trade or trades that you should, taking a trade that you should not have, and messing up a trade by taking profits too late or too early. Another problem would be taking too much risk and trying so hard to get do away risks. However, the last two problems are not big concerns when it comes to binary options.
Despite of such issues, you have to know what is happening and when it will probably happen. For example, out of boredom or if there is a quiet market you may try taking extra trades. You do this because you believe that some extra cash can be worth risking for even when using a new strategy. If you mess up you can have to take some notes by writing down what messed up including your thoughts that moment you failed. If your chart does not have any writing feature, you can screenshot your trades and then save them. As the day ends you can type your comments beside the screenshot. You can screenshot every trading day so that you can have a visual journal of everything you did.
HAVE A DAILY REMINDER
It is also good to constantly remind yourself of the things that you need to do and the things that you have done during the day. You can do o by writing to yourself as a reminder for what shall transpire the next day. Make sure to make it brief and concise. For example, make a simple note when you have recently been skipping trader and you had to be awestruck when those trades earned while you were simply sitting pretty. Your notes can be from personal issues to your ideas and proposed plans on how to overcome future trading errors. As morning comes you look at your notes and you can briskly move on with your day. Make sure your mind is actually clear before you fill it up with some new reminders.
HAVE A RITUAL
You might think that having strict rituals can out you under the Obsessive Compulsive category of mental disorders. However, this is not the case. Rituals can help you get on with your day in a progressive manner. When it comes to trading your ritual may involve issues on your charts and writing comments on your state of mind when you messed up a trade. Taking screenshots can be part of your routine. Remember to take shots of all your trade so that you can keep track of the right data. You can always learn from what you have saved in your computer. This is basically good because it’s hard for you to notice trades in real time. So reviewing them could be a good idea.
When you wake up every day, you repeat all of these point and even say them aloud.
Imagine yourself as a winner – someone who has gained ultimate success from trading. You have been trading for many years and you have accumulated huge sums of cash and finally you are living your dream driving a luxury car and vacationing in the Bahamas. You have been working crazily for five years. Sadly, this imagination can only come true when you have done a major revamp in your life and you have hit a big positive mark on your finances. You have to wake up to reality and start working your way to the top. To do so, you can start by asking yourself some simple questions. Would you trade in a different manner if you have ten million dollars compared to ten thousand dollars? Do rich people trade differently than average traders? Does owning a huge bank account alter the psychology of trading?
The answers greatly vary on your understanding level about money, people, and of course the market. Here are some insights that can help you trade like a winner and become a winner in the end.
IT IS JUST ZERO
Yes is the answer to all of the questions above. Successful trades have different mindsets. If you are a baller trader you tend to trade differently than a regular trader. This is why you can be called a baller because you are unique and you are fixed in the average trading zone. However, you do not have to worry because if you think straight and you gather some patience then you can become the best baller trader in your market. It would be surprising when you know about the beginnings of most baller traders. They probably started the way you did.
A major point that may get into is that money is just numbers. A trader with a baller size account just have more zeroes than you do. They breathe the same air as you do. The different is that they just think and trade differently than you do. As a result of trading in a different manner, they have more zeroes. If you read on you will learn more about the nature of a baller trader.
FAKE IT TO MAKE IT
You have to put in mind that it doesn’t mean that you have a huge trading account you can be a successful trader. A lot of aspiring traders hope to join enter the industry with huge sums of cash around fifty thousand dollars to a hundred thousand dollars or more. These people blow their savings quickly later on realizing that they made horrible decisions. In the above questions it was asked if owning a huge bank account can alter the way you do trading. The answer of course is yes. The idea of having a small or big bank account must not alter the trading process. Yes, it is a fact that if you are a trader and you have a baller size account you may have a varied psychology as a trader than normal traders. However, their trading methods should not be different as yours. Moreover, if you want to have that baller trader mentality, it can be achieved quickly by ensuring that your trading manner can be like that of a baller. This means that you must fake it so that you can make it.
A doctor has a very skilled profession that many of us may seem very sophisticated. However, to any medical doctor treating the sick or doing surgery, it is nothing but a serious routine that they do almost every day and it might be something that they have done for a hundred times. This also applies to pilots and other highly skilled professions that look very difficult to you. This brings you to the next point; to other people, professional traders can also be very skilled individuals who execute something that outside observers don’t have a clue about. What do these individuals have in common? The answer is Consistency.
You may already know that habits can be key factors to success especially in trading. Nonetheless, there is minimal information out there that teaches you how to attain these habits of success. In this article, you will know more about the power of efficient trading habits and getting to know them so that you can have a profitable trading.
INCREASING YOUR TRADING ACCOUNT IS LIKE INCREASING MUSCLE POWER
When you exercise every day or consistently go to the gym even when you do not feel like exercising, can bring you better physical and mental health. When you consistently eat healthy food you can be a healthier person both mentally and physically. For an out of shape person, someone who does not exercise and has bad eating habits, it can be quite hard and rough for them to begin constantly eating and exercising right. This hardship is probably because they have negative habits and are so lazy to do what is right. However, healthy people basically find eating right and exercising right enjoyable because they have been consistently doing it and it has become part of their daily routine. Being healthy has shaped their lives.
This also goes true to going to school, waking up early in the morning, eating breakfast, and prepping up. On the other hand, if you regularly stay up late at night, you will know that this then transforms into a habit and waking up earlier can be very hard on your part. In general, sleeping early and waking up earlier can allow you to be more productive. This goes to show that when you take advantage of the power of consistency for your habit formation you can be very productive.
Constantly education yourself can help you become more knowledgeable, someone who will most likely earn more money and become more successful as compared to someone without constant education. The point here is that in all professional and personal aspects, consistency can build habits which can typically define who we are. To quote famous motivational speaker, Napoleon Hill “We are what we think about and do.” This means that whatever you think and do consistently you can make it into a habit and you can then have the power to make positive or negative decisions based on what you consistently think and do. For example, if you smoke cigarettes regularly you most likely have a smoking habit which is obviously very bad. Moreover, if you have consistent market risk management and stick to a good trading strategy without over trading then you can have a positive and strong trading habit that can help you become a successful trader.
YOUR HABITS ARE BUILT WITH CONSISTENCY
It is hard to decide if your strategy works or not until you try out something new for a certain time span and in a constant manner. How can effectiveness be measured if you do not consistently perform what you are measuring? Typically, six months prior to judging if it’s a failure or success, you can have fresh processes and structures. Minor changes are sometimes more ideal than major ones.
You can master your personal trading strategy when you are consistent in sticking to efficient trading methods such as price action. This can also allow you to identify if your own strategy is really worth it or not. However, your trading results can be generally bad when you switch between trading or methods and when you do not have an edge that is present. How will you know if you have a strategy that actually works if you do not give it a chance to prove itself? Try to be consistent for months to promote discipline and promote strength.
Risk management consistency is the key. When you ensure the consistency of your dollar risk for every trade you can actually control your losses and your emotions as well. If you differentiate your trade from one trade to another, you will most likely fall from a roller coaster trading ride which then results to giving all trading profits back and eventually blow your account. Hand risk consistency after a loss or win is the answer and this will probably be one of the most vital differences between professional and amateur traders.
Track your trades consistently by recording on a journal. By doing so you can develop a healthy trading habit. If you were lost in your path, you can get back on track by recording everything you do related to trading on a journal. It may be a tedious task to do but it actually works in helping you succeed. You have to put in mind that your business growth needs a track record of its success. If you shift gears a lot then it would be hard for you to track what is going on.
CONSISTENCY CAN LEAD TO TRADING SUCCESS
A doctor started learning how to treat people inside a classroom and then moved to the hospital setting and finally after years of studying and training, began treating an operating people. Similarly, a professional trader will take the same course- education, train, practice in a demo account, and then trade using real money. The catalyst that can drive you to improve in any career is consistency. Even if you are working at the smallest company doing simple tasks, you have to start at a smaller setting where you learn first and then apply later. Master the formula towards trading success which is consistency equals habit equals good results, and then you will surely succeed at your trading goals.
Trading for a living is not actually a great thing to do. It can be better off as a hobby or a part time job. Something as risky as trading is bring great risks to your personal finances. Trading means you have to deal with your emotions as your capital. What do you think is the reason why most trader are not able to make it as a living? The reason would probably be the fact that you they have not found a great trading strategy or system or probably it’s the mixture of secret that you believe might be your ticket to success in trading. Well, reality is that pressure and money are both the culprits for giving you second thoughts on making trading a living. Here are some useful points about big mistakes that most traders have that leads to great pressure.
1. LACK OF EDUCATION AND EXPERIENCE
When you go into something without knowing what it really is, you will typically experience lots of pressure. This is just like going to work not knowing what to do. As with trading, you do not trade if you do not know anything about it. You may have been constantly reminded that trading is a skill that you need to learn through proper education and experience. Without these two you may end up losing even your clothes. There is obviously pressure when are afraid of losing all your belongings to trading. There is certainly pressure when you are afraid that your trades will be unsuccessful.
Traders who trade with money without having the right training and trading experience feel a great amount of pressure and can be overwhelmed with emotions as compared to others who had some three to six months education about the industry. A lot of traders trade using live accounts and as they go with it they are learning. This then leads them sucking their accounts dry. There are numerous traders out there who opt to make money from the market first before they start learning the specifics. This is totally wrong.
Trading is like any other profession that needs education first and then experience. The primary solution towards getting rid of that pressure that keeps you from trading for a living is education. If you want to be on the correct path of getting rid of stress and pressure in trading then education and gaining insights from experience, then you can always enroll or download some trading courses.
2. THE NEED TO SUCCEED
The need to succeed can be linked to the first point. There is pressure when you feel that you have to succeed. This is of course is normal because success needs a little or a lot amount of pressure to be possible. It is common for businesspersons to fail due to the idea of letting their businesses to succeed. Put yourself in the shoes of a coffee shop owner who open his shop at the age of 55. He is close to retirement and the idea of investing most of his money in his shop would be great way to have some extra cash as he retires and gets older. When the business struggles he also struggles to breakeven regularly. There is then pressure build-up. Why? Because he risked everything in a single investment and put himself in a platform where bankruptcy is so quintessential.
This scenario can normally happen to trading. Think about waking up every day us to focus on putting your money on trades because you have made it as your source of income or future security. You are forming a very big mental pressure which can be very hard to recover from. Successful traders out there have already learned from this. By understanding the pressure involved with the industry they have found a way how to get rid or avoid it. This would mean that they were patient enough to only train live when they had some real extra money as capital. This goes to show that good traders are realistic that they start with smaller accounts and then build up over time to better levels through discipline and presence of mind. Whatever path they shall take, professional traders get to where they are because they found a way to considerably minimize or get rid of the pressure towards the need to trading in order to succeed.
Trading with presence of mind is also very ideal. Moreover, you do not need to attach money with such mindset. This has to be possible if you have a strong plan B or a fall back plan such as a good job that can pay your bills and insurance together with saving some cash every month. Trading is without doubt very risky and it has the strong capacity to attract those who cannot afford to trade or those who are always hungry for that dollar sign. This is why you have to ensure that you are in a pressure free mindset to begin trading.
3. SCARED MONEY
The other thing that promotes pressure in trading and makes a trader under-capitalized is placing trades using scared money. This means that you are putting money in the market that you should not have placed. It is evident that a lot of novice trades opt to trade with money from credit cards or loans and become insane at the end. You should never consider to trade from a loaned money! Using Scared Money for trading means that you have a strong emotional link with the money that you are about to risk because you know that when you lose you will have greater consequences. The truth to the matter is that if you cannot afford to risk your money then you have to put your head high and simply accept the reality that trading is not yet for you. You can learn trading from demo accounts. Remember that trading using scared money is like burning money because losing money is a total guarantee.