Demo Account Trading
Before you begin trading with real money open a demo account. All the best brokers and financial spread bet companies will allow you to open one free of charge. You can then start trading using ‘make believe’ money. Although trading with a demo account will not involve the same psychological aspects as using real money it will give you a feel for the markets before you start using your hard earned cash.
Get An Education
Like any other profession there is no substitute for getting a good education. Trading is no different. There are hundreds of books and courses you can study on trading. Ian Williams trading course is one that I can thoroughly recommend.
Get An Education
Like any other profession there is no substitute for getting a good education. Trading is no different. There are hundreds of books and courses you can study on trading. Ian Williams trading course is one that I can thoroughly recommend.
Start Small
When you have gained some confidence using your demo account, start trading using small amounts. It does not matter if you only make small profits. Don’t forget this will mean you only make small loses, providing you manage your trades correctly. The important point is that you will be gaining experience and learning to read the markets correctly. You will also be exposing yourself to the psychological aspects of using real money which you will have to learn if you are going to be a successful trader
Never Use Money You Can’t Afford To Lose
As difficult as this might be to accept, you should only trade with money you can afford to lose. And be prepared that you might lose your initial bank. If you are trading with money that you need for other things such as the rent, mortgage payments or other bills you are almost certain to fail. There is no way you will be able to make sound decisions if you are trading with money you are terrified of losing.
Cut Your Losing Trades Short
Few people can admit they are wrong! It’s just human nature. This fact makes cutting your losing trades short a very difficult thing to do. It takes experience, courage and a great deal of discipline.
However unless you learn this golden rule you are not going to survive for very long in the trading world. New traders, in particular, often find closing losing trades impossible leading to even greater loses. Accept losing trades. Period. Every trader has them.
Cutting your losing trades short is an essential part of your money management. Even if you are correct on less than half of your trades, as long as you cut your losses short and let your winning trades run, you can still make money. Three or four winning trades out of ten can make you a winner if you keep your discipline.
Let Your Profits Run
Allowing your profitable trades to run as long as possible and not close them too soon is just as important as cutting your losing trades short. Sometimes it may be tempting to close a trade just for the sake of taking a profit but this is when you must hold your discipline and allow the trade to run to secure maximum profits.
Trade With The Trend
You have no doubt heard this phrase before. Don’t be fooled by it’s simplicity!
When a market is moving in a major trend don’t trade against it. If you do, you are likely to get hurt. A mistake often made new traders (and more experienced ones) is to buy or be long in a down trend or sell short in an up trend.
If you can follow these simple rules they should provide the basics for long term success.
There are many courses that will help. Here is one that I can thoroughly recommend - Ian Williams Trading course.
Please note that I receive no monies or commission whatsoever for recommending this course.
Please note that I receive no monies or commission whatsoever for recommending this course.