In this article we have compiled a series of useful trading tips that we believe can help you on your way to becoming a profitable trader.
We've included 45 tips among which you won't find miraculous tricks but most of the key points on which many traders make mistakes and therefore, if you manage to be able to identify them and act properly you can save a significant amount of time, money and effort.
These tips are applicable to online trading with any financial instrument (Forex currency market, stocks, indices, commodities, ...) and are oriented to various aspects, not only from the point of view of the mental attitude you must maintain when trading but also other much more practical focused on your daily operations. We hope they will help you.
Tips for successful trading:
1. Take trading seriously, it's not a game, it's not a casino or a type of bet, it's really a business.
2. You must leave your emotions out of this business. Greed or fear is very damaging. Much of the success in trading depends on psychological aspects.
3. Don't think that you are going to get rich instantly or that it is going to be an easy path.
4. If your expectations are not realistic you will not get anywhere.
5. Do not think that it is impossible to be successful in trading. Practice, analyze and learn enough before making excuses and giving up.
6. You can read and try hundreds of strategies but it is very difficult to find the perfect strategy. If you follow too many strategies you will be saturated with information and you will only get confused.
7. Try simple strategies and adapt them to your needs. Remember: Simplicity in trading is the key.
8. Start practicing on a demo account. (Brokers with free demo accounts).
9. Take the demo account seriously as if it were your money at stake.
10. To be a profitable trader there are no shortcuts: Work, discipline and patience.
11. Throwing yourself too soon into a real account is not smart.
12. It's not smart to be afraid to throw yourself into a real account when you've been practicing long enough.
13. Understand the differences between a demo and a real account.
14. Don't choose your online broker because it offers you the most aggressive promotion. Look for a serious, reliable broker that fits your needs (How to choose the right online broker?)
15. Trade only with an amount of money you are willing to lose. If you consider trading as a solution to your economic problems, your emotions will put you under negative pressure, which is not recommended.
16. Relativize the result and focus on learning and optimizing your strategy.
17. Do not despair when the market moves against your positions.
18. When you are going to open a position: define your profit objective, always place your stop loss and stay calm, you have an exit plan whether things are going well or not.
19. Maintain your position even if you go into losses. It is preferable that you skip your stop loss (if you have to jump) and analyze that you have failed to close your positions prematurely for fear and not be able to analyze anything.
20. Let your profits run until you reach the goal you defined before opening the position. Do not close your positions in profits before time for fear of losing.
21. Don't try to guess how the market will behave.
22. Look for signs of confirmation that the market is going in a certain direction and apply your strategy. Detecting the direction in which the market is going is much easier than trying to predict what it will do in the future and trying to anticipate something that may not happen.
23. Your job is not to guess but to detect and take advantage of strong trading opportunities that are occurring in the present.
24. Be aware of economic events and news that may affect your positions and strategy. Keep a good Economic Calendar handy.
25. Your focus should always remain on your strategy, it is your tool for success.
26. You cannot always pretend to win. Losses are part of the game and you must accept it or else you will only get frustrated and give up.
27. If you come from a losing streak, never try to challenge the market or take revenge.
28. If you have a bad day, do not trade, you will avoid mistakes and you will be able to take better advantage of the opportunities the following day.
29. Don't go around analyzing a possible investment opportunity. Spending too much time looking at charts will tire you or push you to see opportunities where there are none. If you don't find clear opportunities applying your strategy, close the trading platform and try again the next day.
30. Don't push yourself to open positions or open too many positions simultaneously (overtrading). Don't try to capture every opportunity.
31. Start using medium or long term time frames. You will avoid stress and false signals. (What is the right time frame for trading?).
32. Understand the advantages and also the disadvantages of leverage. (How to use leverage intelligently).
33. Don't risk too much per trade. (5 Basic Rules of Money Management).
34. Consider growing your trading account slowly but surely.
35. Don't be too confident. Always act with caution, prudence and controlling risk.
36. Don't be too self-critical.
37. Do not let yourself fall into self-sabotage. Many mistakes we make are due to self-sabotage and we don't even realize it.
38. If you are analyzing a possible opportunity too much, you are not completely sure, you give it a lot of turns,... surely it is because you are pushing yourself to take a bad position.
39. Use logic instead of intuition or emotions.
40. Many traders lose money. Don't act like them or fall into their same mistakes.
41. You can learn from the mistakes that other traders have made without having to experience them in your own flesh.
42. Do not try to reinvent the wheel. It will cost you time and money.
43. If you are not satisfied with your results, try to change your strategy, your trading system, your attitude... but not your objective.
44. If you like what you do, there is no reason to give up. Trading is exciting. Keep learning and improving.
45. Self-motivation and maintaining a positive attitude is the fastest and safest way to reach your goals.
Surely we have left a good handful of useful tips in the inkwell so we do not want this to be a closed article and we would like you to provide us with any advice or own trading experience that you have learned and that is not included in the previous tips.
Don't hesitate to send it in the comments section below and other traders will surely benefit as well.
Also if you think these tips are useful you can help us share them in social networks with your tweets, likes or +1s. Thank you very much and good trading.