The basis of successful trading is to keep track of what you are doing. A trading journal, where you will write all the details about each transaction, helps you to identify what works well for you and what does not. This way, you will be able to introduce the necessary changes in your trading method.
But there is something I discovered after one year of trading and I want to share my secret with you. I have noticed that my actions are effective when I apply 4 simple tricks. Read about them and use my experience to your advantage.
4 tricks for effective trading
Trade on a demo account as it was a real one
Olymp Trade offers its clients a demo account. This is a safe place for your training. It is credited with virtual cash and can be replenished whenever you use all the funds in it.
I always use a demo account when I need to try a new strategy or a new trading tool. Furthermore, I test different assets there, different time frames or investment amounts. I decide what brings me profit and leave what does not serve me. Then, I am practising as long as I feel confident using the tactic. Only then I shift to the real account.
I know traders who treat a demo account like a play area. They are not afraid of losing their own money so they go crazy. They put huge amounts in the transactions, they apply random strategies, they trade without thinking much about what they are doing.
But this is not the right attitude. Trade on a demo account as it was a real one.
You will get to know what assets or strategy suit you best only if you behave the same way as with real money. You will gain confidence and faith that you can successfully apply a specific strategy in a live account.
I recommend you treat a demo account as a real one and use it for a long time. A trader needs training, like an athlete. Both spend many hours working on their skills in the gym (or in our case, in the demo account). Both sometimes win, sometimes lose. But they do not give up and they return to practising.
Be a trading athlete and use a demo account as your training field for as long as you need it.
Do not trade with a 60-second timeframe
Short trades have often a higher rate of return. This attracts traders as they hope for fast money. But 60 seconds is a long time in terms of waiting and worrying about the outcome. You fear losing more when you invest big money. And anxiety is not a good advisor.
There is also a risk you will become too confident when you make some profits with 60-second trades. You would want to earn even faster so you would increase the investment amount. But this way you can easily lose all your capital.
The price is moving all the time. Even in the 60 seconds, it changes constantly. And these small moves can cost you big money.
Avoid trading with a 60-second timeframe. Longer timeframes are much easier to analyse. The fluctuations of the price are less intense and so you will get bigger chances of ending up with a profit.
Learn from history
It is often said that you should learn to protect your capital before you start making money. To do that, you should know which transactions win and which lose. And this you will learn from the history of your transactions.
In the past, the traders were keeping a transaction log. They were writing down every position they opened. Today, you do not have to do it anymore. On the Olymp Trade platform, there is a special tool called “Trades” which allows you to view your past trades.
You can learn a lot from history. The main information is whether you won or lost. Then, you will find out in what hours you are the most productive, what asset brings you the biggest profits, what strategies are the most effective ones. Use this information to your benefit.
Design the trading plan and stick to it
The beginners often use random strategies and change the markets. They just want to gain profits, so if they lose in one market, they will quickly go to another one. I did the same. And I have lost huge investments.
Then, I began to observe successful traders and I realised they follow their trading plans. And I did not even have one!
Every trader should design the trading plan and then stick to it. I will tell you now what you should include in your trading plan.
First, decide how long you will be using the demo account. The time spent there ought to be long enough to discover which markets and the strategies work best for you. I chose to start with 3 weeks in the demo account. During this time, I have noted every transaction I made to be able to analyse them in the future.
What else should be included in the trading plan?
- How much money you want to deposit in the Olymp Trade account.
- How much money you wish to put on a single transaction.
- What timeframe you will use.
- What type of chart you will set.
- What kind of indicators you will apply.
- On which markets and at what time of the day you will trade.
- When you will stop for a day (for example, after 3 consecutive losses).
- When you will withdraw the profits.
These are some points you should consider when making a trading plan. With time, you will know if you need to add something to it. Design a plan that suits your needs. And stick to it.
I have shared my secret tricks for successful trading. I believe they will help you to earn money faster. Implement them in the Olymp Trade demo account. Remember to treat it as a real one. Review the history of your trades, avoid 1-minute transactions and follow a personal trading plan.
Below you will find the comments section. Tell us how long you have been trading on the Olymp Trade platform and what your results are.
Wish you profitable trading!