There is no secret solution to becoming a successful trader and it takes a lot of time, practicing, and making mistakes for many before they start getting returns. Yet there are some common and simple tips one might consider before starting their trading or investing journey. Let’s look at some of them.
Use the Demo account
The Demo account on Pocket Option is a great opportunity for learning: you can practice placing trades, using various trading tools, risk management techniques, strategies and indicators before risking your real funds. Pocket Option ensures that the Demo account copies all of the essential technical and functional features of a real account and offers a great variety of assets, indicators, and chart types. You have access to a Demo account after signing up on the platform and some virtual funds are placed on it. You can always top up the balance for free if you run out.
Once you start trading, you can still use a Demo account to practice new strategies or try out new assets.
Trading involves a great deal of preparation, not only regarding practicing your skills but also getting to know the market and how certain assets function. One needs to constantly monitor and analyze the instruments and the market they are trading in. There are two generally distinguished categories of market analysis, technical and fundamental. Technical analysis looks closely at the price movement of an asset to anticipate its future movement. This can be done by closely examining the chart and often with the help of indicators and tools for drawing available on Pocket Option:
You can also change the chart type to the one that makes price action analysis easiest for trading and use various drawings.
Fundamental analysis is aimed at determining the intrinsic value of a company’s stock and is often used in long-term investment or trading. It provides you with a broader picture of how the company is performing financially, how it performed in the past, and what are its prospects. Often these two types of analysis are used in conjunction.
Review your trading history
Pocket Option keeps information on all of your trades and that makes it much easier to analyze your trading patterns, determine what led to success and losses and which positions were the most profitable, and make changes to your trading strategy accordingly. You can look at your past positions under the History of trades section; there are also several filtering options, for example, trades from a specific time range, or by the type of trades (Express trades, MT5 Forex trades, Social trades, etc). You can find essential details on each position, open and closing times, trading amount and profit/loss made, etc. Based on this information, Pocket Option provides you general trading suggestions at the bottom of the page:
Adjust your trading plan
It can be quite tempting to start trading or investing without making a plan beforehand. Often this leads to traders not having a clear framework for their trades or developing a consistent approach for evaluation.
Of course, every trading plan is individual, but here are some basic points on your trading plan may include:
- What are your trading goals
- How much money is placed on every trade (position size)
- What type of assets are traded and during which times
- Duration of each position, entry, and exit point
- Which chart type and the trading indicator will be used
- Trade settings, such as the level of stop-loss
- What to include in your market analysis
Prices of assets are affected by many economic events, from central bank policies to election results, and it may be quite challenging to keep all of them in mind. In fact, Pocket Option platform provides you with several features that facilitate market analysis, relevant events under the calendar section, asset, and market analytics. You can also install analytical applications that can be installed on your device. You can find all of these options on the left side of the chart under the “A” button:
Developing a trading strategy
While drafting a trading plan you might want to consider your general trading strategy too. A trading strategy describes the overall system a trader uses to place their buy and sell orders. Some strategies are certainly more complex than others and involve choosing a specific selection of assets, deciding on the type of analysis to be conducted, the choice and the use of indicators, rules for entering and exiting trades, risk tolerance, and so on. It is equally important to understand well the asset you are trading and what factors affect its price. There is a great variety of assets on Pocket Option but some traders choose to focus only on a few and learn how to trade them thoroughly. Pocket Option organizes assets by categories:
You can choose your favorite assets to appear on the quick access bar by clicking the star sign next to it. Do not forget about managing your risks and controlling trade sizes to ensure you do not place all of your funds on a single large position, diversification is often a very important factor of a good trading process.
Pocket Option also offers the option of social trading which allows you to copy positions of other traders on the platform. This option may be used by those who do not have the time or the knowledge to place and monitor positions themselves; remember, however, copying other traders exposes you to potential losses as well as profits. You can choose a trader from a selection of top-ranked traders by the platform or search any user by their name:
Hopefully, you found the tips mentioned in this article helpful for your trading. They do not guarantee success but might provide some guidance on using Pocket Option. Best of luck!
Risk Warning: The trading products offered by the companies listed on this website carry a high level of risk and can result in the loss of all your funds. You should never trade money that you cannot afford to lose.