Any discipline requires practice. Trading is not different in this matter. You have to learn, work and gain experience to become a master. The beginnings are often difficult, but this is the phase everyone needs to pass through. It can just take longer for some.
The newbies often aspire to do all by themselves. Then they lose cash, get disheartened and quit. Learn from more experienced ones and you will avoid at least a few mistakes. There is some advice in this article gathered by the traders who were using Olymp Trade platform for one month. They have answered the question about the most valuable lesson they had learned after a month of trading. Let’s see what the lessons are.
Go with the market
Some think they are able to forecast the market direction. But markets often behave in an unpredictable way. There are many factors that can influence price movements.
So the easiest way to trade is to just go with the market. Do not try to go against it or you will risk losing your funds. Open long positions when you see a green candle. Go short when the bearish candle appears.
Decide on the expiry time before you start trading
Opening transactions is not a difficult task. You just have to press the green or the red button to buy or sell. But not to lose the money, you need also to know when to close the position.
Decide on the expiry time beforehand. During this time you analyse the market, observe and estimate the probability of winning.
Keep greed and impatience in check
Emotions can interfere with your actions. This is a fact. And they are no less important in the trading business. Many beginners come to the trading platform, believing this is the way of becoming rich in one night. But this does not work this way.
Trading is a waiting game that demands a huge portion of patience. Do not try to rush things. Analyse the market carefully, know yourself, learn about different strategies before you begin.
Moreover, do not let greed make decisions for you. It is not uncommon among traders that they are so sure of their skills and they dream about huge sums of money, that they invest a lot of cash in a single trade. This is not wise and caused many accounts’ drainings in the past. It is recommended to invest no more than 5% of your capital in one transaction.
Keep only one position open
Again, you may feel tempted to open multiple positions. You may think that more trades will bring you more money. But opening various transactions simultaneously, unnecessarily expose you to a bigger risk. Your focus is distracted and it can lead to failure. And when you add all the trades that lose, it may turn out to be a great sum of money.
Set bigger time frames
The price moves constantly. It is very difficult to see the bigger picture when you set a small time frame. Use at least a 5-minute time frame, particularly at the beginning. You will recognise the trend easily and avoid small price fluctuations on your chart.
Design your strategy
Every trader has a strategy. But to be successful this strategy must be yours. Design your own strategy. This will ensure it responds to your needs. You will be able to adjust it along the way. Moreover, building your own strategy will make you more eager to follow it.
One month may seem a short time to you. But the truth is that any time spent trading expands your experience. And both, winning and losses count. You learn something with every transaction made.
This collection of advice from other traders is very precious. Use it to your advantage.
How long have you been trading on Olymp Trade? What advice do you have for other traders? Share your thoughts with others in the comments section below.
Wish you high profits!