The world of trading is complex and, for a novice trader, it can seem a scary world. To succeed in the markets, you need a number of skills and character traits. But, despite this, there are 3 little tricks that you can use to help you ‘navigate the trading minefield’ and improve your chances of making a profit.
1) Match your Personality with your Trading Style
If you’re trading, the first thing that you should do is set yourself a clear goal. Once you’ve established this goal, you can decide upon a trading style that will get you there.
When you’re deciding on your trading style, however, it is important that you make it reflect your personality. So, for example, if you like to sleep stress-free at night then day trading may be for you. Day trading is where you close your position at the end of each trading day so you know exactly what you’ve won or lost. On the other hand, if you prefer long term strategies, then you’d probably prefer being a position trader. It is all about what suits you. Never go against the grain and always use a style that reflects your personality.
2) Choose a Broker that offers a trading platform that’s suitable for you
It is incredibly important to stress that not all brokers are the same. On paper, they may all seem to offer the same service but, if you dig a little deeper, the services they offer vary widely. When you’re choosing a forex broker, you should spend the time researching each company. You should check their reputation and their reliability as well as the services that they offer.
You should spend some time researching each broker in order to find out if the services they offer are right for you. The platform that the broker offers is also vitally important and many brokers will offer a range of platforms depending on the type of account.
In order to be a successful trader you’ll need a good broker who offers a good account. For this reason, the cheapest option isn’t always the best so shop around and see what’s on offer.
3) Keep a Record and learn from your Mistakes
When you’re trading you’ll undoubtedly incur losses. The key to being a successful trader, however, is to learn from these losses and make sure that you don’t repeat them. For this reason, you should consider keeping a ‘little black book’ that marks out your trades. This can then be used as a constant historical reminder of your trades and the circumstances they occurred in. From here, you can then consult the book in the future. Ensure that you note down why the transaction occurred and, if possible, why you think it failed.
There you have it; three simple tricks that will help you float in the trading market. It isn’t easy and you will incur losses at some point but, by following these tricks, you give yourself the best chance to succeed.