There are endless tips and advice you could get your hands on but we compiled a list that we believe should add value to your short term or long term trading:
Keep an eye on the economic calendar
Whether your strategy takes into account economic releases or not, you should always be mindful of what’s next and how it could affect your positions. If you are a long term trader, chances are you won’t be bothered but a short term trader might need to adjust stops and targets or maybe exit or hedge positions briefly.
A demo account is for everyone
Whether you are a beginner in the markets or someone more seasoned with a few years under their belt, it never hurts to practice on a demo account or refine your current strategy. This keeps you in sync with the markets without risking your hard earned money.
Choose the right provider
While there are hundreds and even thousands of brokers around the world, some of them might offer better value compared to others. Choose someone with a good reputation, offering competitive trading conditions and regulated in fairly known jurisdictions. Other things to look for is the range of available trading products and support.
Continuous learning
Never stop learning about the markets and all of its aspects. Spend as much time as you can educating yourself on different concepts including technical and fundamental analysis, market structure, sentiment and any other concepts that could help with your journey.
Keep your emotions in check
Emotions can be a burden when it comes to financial markets. They could make you greedy, scared or simply irrational. Keep them in check and remember that trading is a business and should be treated that way. Focus on your strategy and being consistent at it.
Have a strategy
There’s nothing worse than trading randomly with no plan. Create a strategy and a plan and focus on addressing each possible scenario that could branch out from your main strategy. Cover every element and every step and this should help you build consistency.
Risk management is very important
There’s no point in having a good strategy without proper risk management. Risk management keeps you in the game and helps you recover if losses arise while supporting your success when you’re profitable. Focus on a small risk per trade and don’t overleverage your account.
Take profit and stop loss
In line with risk management, always plan to use stop loss and take profit orders to protect your positions from adverse market conditions. Get out when the market tells you that you are wrong while exiting when your target is reached. It can also give you time to do other things while your positions are in the market.
Trading hours and active markets
Not all markets are active. For example, the middle of the Asian session may not provide enough volatility on European currency pairs. The best times to trade including the London session and the New York as well as the overlap of the two. Also the overlap of the Asian and European session is a good one as well. Dead markets mean wasting time.
Avoid trading signals
Some people might be offering signals and robots that promise riches and success. While this is not impossible, it’s better to focus on your own trading and methodology and build success with your knowledge and skills instead of relying on someone else who could potentially fail over time.
With CFI, you can trade thousands of CFDs on Stocks, Forex, Commodities, Indices, and ETFs from one single platform. If you are new to the financial markets, you can start with a risk-free demo account and for the more seasoned traders, opening a real account is a straightforward process that requires very little time. CFI offers its clients many services and features including free daily webinars, dedicated account managers, daily technical reports, and highly competitive conditions that include fast execution and spreads from zero pips.
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The content present in this article reflects the opinions and views of the author and does not necessarily reflect the position of CFI. The material published on this blog is provided for informational purposes only and should not be considered as investment advice. The Company is not responsible for the decisions and choices of the investor who has full and free will to make decisions that they see appropriate upon the investor’s sole discretion.