5 TIPS FOR SMALL ACCOUNTSHey! When we start trading we want to make a lot of money and became millionaires by the end of month. This awesome motivation could be cut off easily without following simple plan and strategy.
When I started trading I entered only with 100$ account and loose it all within a month. I didn’t payed attention to my personal financial plan and rules, which cost me a lot of losses during my first steps in trading.
Knowing this 5 tips will help you out if you just started trading and run small account.
So, 5 TIPS FOR SMALL ACCOUNTS
1. Follow financial plan, do not go all in. Yeah, to make financial plan you need to study it first, if you are without financial education. DO NOT GO ALL IN, this is not joke, stop it right now! Small is Big in trading, and watch your trades carefully.
2. Trade less instruments, trade less often. Focus. Once again, small is big. Learn one or two assets, learn their nature and regular chart behaviour. This will help you focus and start open profitable trades.
3. Avoid highly volatile assets, trade high volumes. Take one or two big volume assets and start trading on them only. Do not run into forgotten stocks or coins just because they low cost.
4. Use higher timeframes, do not scalp. Most of new traders lose money in first months just because they trying scalping, your emotions going crazy and risks increasing rapidly. Start taking one-two trades per week and see how it will go, this will release pressure and relax.
5. Accept losses, plan how much you can lose. The biggest problem of all traders is to think in percentages about losses, this way will only increase losses. Think about money and plan you affordable loss amount.
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Tradinghabits
Five Habits for Safer TradingGreetings @TradingView community!
There are five everyday habits that can significantly limit your risk exposure and contribute to a more secure trading experience.
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1. The Imperative Trading Plan
Despite repeated emphasis, many traders still operate without a well-defined trading plan, succumbing to impulsive decisions. Every trader should have a plan specifying entry and exit points, curbing emotional reactions to adverse price movements. A trading plan acts as a compass, navigating the unpredictable seas of the financial markets.
2. Trading Detox: Take a Step Back
Feeling trapped in a trading rut? Fundamentals and technical analyses losing their edge? Taking a step back from trading provides a valuable reset. By disengaging emotionally from positions, traders gain a fresh perspective on market themes and chart patterns. A break allows for reflection on past trades, often revealing insights that lead to an improved trading plan upon return.
3. Profit Lock-in Strategy
Often overlooked, locking in profits on winning trades is a prudent risk management practice. While riding a trend is tempting, securing a portion of profits limits exposure to potential volatility. Following strategies like STA or scaling techniques, where positions are adjusted based on market conditions, allows traders to secure gains even if trends abruptly reverse.
4. Precision in Execution
The ease of electronic trading comes with a caveat—erroneous commands. The infamous "fat finger" event of May 2010, resulting in a trillion-dollar market drop, serves as a cautionary tale. Double, triple, and quadruple-checking your orders is crucial. Make reviewing commands a routine, taking only seconds of your time but preventing costly blunders.
5. Regular Withdrawals for Stability
While seeing an account grow is gratifying, regularly withdrawing profits is a prudent move. It prevents overexposure and guards against impulsive decisions associated with additional capital. Being consistently profitable requires a focus on the trading process rather than profits. Treat yourself to the fruits of your labor by withdrawing money, enjoying a well-deserved break, and maintaining a healthy trading perspective.
Incorporating these habits into your daily trading routine can enhance your risk management strategy, contributing to a safer and more successful trading experience.
HOW TO BALANCE YOUR LIFE AND TRADINGHey! When we all started we passed trough some difficulties in trading.
Usually we face this problems during first year of trading. Most of people by the end of year losing all of money and quit trading forever.
Basically this caused by overtrading and having no idea what to do. Like many business in our lives trading require some abilities and technics which you can study and apply to get good results. But when you are novice trade you probably don't even know where to start.
So on the pic you see basic problems and solutions to start from:
PROBLEMS:
- Worried about trades all day and night
This point distracts from important things and giving huge depression in your live.
- Losses affecting personality and mood
When you starting to losing too much, it often hard to get money back, moreover trying to recoup will give even more loss.
- Mindset confusion
Like every depression in our lives it confuses our abilities to think clear.
- Rushing for new trades
Overtrading is common mistake, causing huge losses from impatient traders/investors.
- Trading assets for all of your money
I f you ever tried trading for 100% of your money — write me a comment!
This problem causing new traders losing too much, and trading become gambling.
SOLUTION:
- Plan your trades
Focus on the future trades, plan your entries, take profits, stop loss. Like every business it should be planned and if something not working you have to fix it and try again.
- Take small trades
In trading Small is BIG, start with small trades, don't give rush, if you will not be rich till the end of year it is okay. But first learn how to trade and make sure you learned from mistakes and wins.
- Focus on affordable risk
Yeah, just 10% from traders have profits every month, rest of traders struggling somewhere in the middle. To make sure you will be in 10% winners, try to understand your risks before opening new trades.
- Use trading system
Trading system is something which suits your personality, you have to try different strategies and technics before understanding your trading criterias. But once trading system is setup, you will be fine and closing months in solid profits.
- Take breaks in trading
Make sure you have some time for other activities, try to plan your trading time and sometimes on the market is nothing to do, so take a breath and relax. Market won't go away :)
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Probably the Biggest Trading Advice CollectionHey traders! We hope you find these trading advices helpful!
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Top 50 Trading Advices
1. Risk Management is Key: Always define your risk before entering a trade. Use stop-loss orders to limit potential losses and protect your capital.
2. Stay Informed: Keep up with financial news and events that can impact your assets. Use economic calendars and news alerts to stay ahead of the curve.
3. Keep Emotions in Check: Emotions can cloud judgment. Stick to your trading plan and avoid impulsive decisions, especially during volatile markets.
4. Use Technical Analysis: Learn to read charts and use technical indicators. They can provide valuable insights into market trends and potential entry/exit points.
5. Diversify Your Portfolio: Don't put all your eggs in one basket. Diversification can help spread risk and improve long-term performance.
6. Paper Trading: Practice with a demo account before risking real capital. It's a great way to test strategies without financial consequences.
7. Continuous Learning: The markets evolve, and so should you. Stay updated with trading books, courses, and webinars to refine your skills.
8. Keep a Trading Journal: Record every trade, including your thoughts and emotions. It's a valuable tool for learning from your successes and mistakes.
9. Trade During Peak Hours: Liquidity tends to be higher during peak trading hours, which can lead to tighter spreads and better execution.
10. Stay Disciplined: Discipline is the cornerstone of successful trading. Stick to your trading plan, even when things get tough.
11. Monitor Market Sentiment: Pay attention to market sentiment indicators, like the COT (Commitments of Traders) report, to gauge how traders are positioned.
12. Use Limit Orders: Instead of market orders, consider using limit orders. They allow you to specify the price at which you want to enter or exit a trade.
13. Avoid Overtrading: Set a daily or weekly trading limit to prevent overtrading. It's easy to get caught up, so discipline is crucial.
14. Backtest Your Strategies: Before deploying a new trading strategy, backtest it using historical data to see how it would have performed in the past.
15. Stay Patient: Wait for the right opportunities. Not every price movement is a trading opportunity, and sometimes it's best to sit on the sidelines.
16. Understand Correlations: Be aware of how different assets are correlated. Understanding these relationships can help in risk management.
17. Keep an Eye on Fees: High trading fees can eat into your profits. Look for brokers with competitive fee structures to maximize your returns.
18. Network with Other Traders: Join trading communities or forums to share experiences and learn from fellow traders. Collaboration can be enlightening.
19. Adapt to Changing Volatility: Adjust your trading strategy based on market volatility. Some strategies work better in volatile markets, while others shine in calmer conditions.
20. Mental and Physical Well-Being: Take care of your mental and physical health. Trading is demanding, and a clear mind and body can make better decisions.
21. Stay Adaptable: Markets change, and so should your strategies. Be willing to adapt and evolve with changing conditions.
22. Understand Leverage: If you use leverage, make sure you understand how it amplifies both profits and losses. Use it cautiously.
23. Keep an Eye on Economic Indicators: Economic indicators like GDP, employment reports, and inflation can provide insights into broader market trends.
24. Avoid Revenge Trading: Don't try to make up for losses by immediately entering more trades. Stick to your strategy and avoid impulsive actions.
25. Set Realistic Goals: Have clear, achievable trading goals. Knowing what you want to accomplish can help you stay focused and motivated.
26. Trade What You Know: Stick to assets and markets you understand. Trying to trade unfamiliar assets can lead to unnecessary risks.
27. Stay Informed About Regulations: Be aware of the regulatory environment in your trading jurisdiction. Compliance is crucial to avoid legal issues.
28. Avoid Weekend Gaps: Markets can experience significant gaps over the weekend. Consider closing positions on Fridays if you're concerned about weekend gaps.
29. Avoid Trading on Tips: Don't base your trades solely on tips or rumors. Conduct your research and analysis before making decisions.
30. Practice Patience: Trading success takes time. Don't expect instant riches. Be patient, persistent, and committed to your craft.
31. Maintain a Trading Routine: Establish a daily routine that includes market analysis, review of open positions, and research. Consistency can lead to better decision-making.
32. Keep a Clear Workspace: Organize your trading environment. A clutter-free workspace can help you stay focused and reduce distractions.
33. Avoid Overconfidence: Overconfidence can lead to risky behavior. Always approach trading with humility and a healthy dose of skepticism.
34. Scale Positions: Consider scaling into and out of trades gradually. This approach can help manage risk and optimize profit potential.
35. Use Trading Journals: Maintain a detailed trading journal to record your trades, including entry and exit points, reasons for the trade, and emotions. It's a valuable learning tool.
36. Risk-Reward Ratio: Ensure your potential reward justifies the risk. Aim for a favorable risk-reward ratio in your trades.
37. Stay Calm During Drawdowns: Drawdowns are a part of trading. Stay calm and avoid making impulsive decisions during losing streaks.
38. Learn from Mistakes: Don't dwell on losses; instead, learn from them. Each mistake is an opportunity for growth and improvement.
39. Stay Grounded: Avoid letting wins inflate your ego. Stay grounded and maintain discipline, regardless of your trading success.
40. Consider Seasonal Trends: Certain assets exhibit seasonal patterns. Research and consider these trends when making trading decisions.
41. Utilize Fundamental Analysis: Combine technical analysis with fundamental analysis for a comprehensive view of the markets.
42. Stay Informed About Global Events: International events can have a significant impact on markets. Stay informed about global news and geopolitical developments.
43. Stay Informed About Global Events: International events can have a significant impact on markets. Stay informed about global news and geopolitical developments.
44. Avoid Chasing Trends: Be cautious of entering trades late in a trend. Wait for pullbacks or retracements for better entry points.
45. Trade with a Clear Mind: Avoid trading when you're stressed, tired, or distracted. A clear and focused mind leads to better decisions.
46. Learn about Position Sizing: Determine the appropriate size for each trade based on your account size and risk tolerance.
47. Utilize Mobile Trading: Mobile trading apps can provide flexibility, allowing you to manage your trades on the go.
48. Stay Humble in Victory: While celebrating wins is natural, stay humble and recognize that markets can be unpredictable.
49. Consider Tax Implications: Be aware of the tax implications of your trading activities and plan accordingly.
50. Avoid Overnight Risk: Consider closing positions before major news events or overnight gaps to minimize risk.
51. Continuous Education: Commit to lifelong learning in trading. The more you know, the better-equipped you'll be to navigate the markets successfully.
Remember that trading involves risk, and there are no guarantees of profit. These advices are meant to help you become a more informed and disciplined trader, but always approach the markets with caution and a well-thought-out plan.
Happy trading! 📊💼
Sailing Smooth in Forex: 3 Hazards to Abandon" 🚢💹🔐
In the vast sea of forex trading, success often hinges on what you let go of rather than what you acquire. Overtrading, overrisking, and overconfidence are like treacherous waves that can capsize your trading ship. In this article, we'll explore these three perilous habits and explain why you must bid them farewell for a safer and more profitable voyage in the world of forex.
1. Overtrading: The Temptation to Sail Too Often
Overtrading occurs when traders execute an excessive number of trades, often beyond their risk tolerance or strategy capacity.
2. Overrisking: The Peril of Excessive Exposure
Overrisking involves allocating too much of your capital to a single trade, disregarding prudent risk management.
3. Overconfidence: The Siren's Call
Overconfidence can lead traders to believe they are infallible, causing them to neglect due diligence and risk management.
In the unpredictable waters of forex trading, success requires abandoning the hazardous habits of overtrading, overrisking, and overconfidence. By recognizing and addressing these tendencies, you can set a course for safer and more profitable trading. Remember, a disciplined and calculated approach is the lighthouse that guides you through the fog of trading uncertainties. 🚢💹🔐
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8 Trading Habits of Successful TradersConsistently profitable traders have a lot of things in common. Watching how they act and following their ideas & thoughts we can spot a lot of commonalities among them. In this post, I have collected 8 trading habits that a trader should have to become successful.
1️⃣ - Realistic Expectation & Vision
Many traders, most often beginners, commonly fall for the trap of wishful thinking. When analysing the charts, they usually only view the market from one bias and only perceive price heading in one direction.
And this is typically the one that their own analysis is pointing towards. However, going into each trade with a realistic expectation that the market doesn't care what you think may happen, and being prepared for a trade to go wrong will help keep you level headed.
2️⃣ - Anticipation of Different Outcomes
Anything can happen in financial markets and for this reason, professional traders always justify their decisions in probabilities.
They understand that 100% chances do not exist so looking at all possible probabilities before entering any trades, the trader is always ready for completely different outcomes and accepts each and every move given by the market.
3️⃣ - Emotional Stability
The market is a wild beast who always wants to bite us and most of the time it manages to do that e.g. drawdowns & losing streaks...
Those who trade for at least 1 year know how unpredictable and unstable the market can be. A perfectly looking trading setup can easily turn into a big losing trade.
Of course, that is painful and of course with more & more losses, the anxiety will begin to chase us, the stress will overwhelm us and you may begin to start second guessing yourself.
Only by remaining stable and calm, you will manage to overcome the negative periods. Learn to control your emotions, learn to take losses!
4️⃣ - Continuous Learning
The markets are infinitely deep in their nature. Trading & constant monitoring of the market always unveil new, uncharted elements and things.
Throughout all my years of day trading, I can't help wondering how many new things I learn each and every day. With continuous learning you evolve, you become better and it improves your trading performance & results.
5️⃣ - Flexibility & Adaptivity
The markets are always changing. If you were trading before COVID crisis, I guess you feel how the reality among us shifted. With fundamental changes in our daily lives, the markets changed as well.
It is hard to say what exactly has altered though, however, we all can feel it. In order to survive in a constantly changing environment we must always be adapting and never stagnant.
6️⃣ - Trade Journaling
Pro traders always assess their past performance & results. They track each and every trading position that they opened.
Both losing trades and winning trades require analysis and observations. Only by studying the past results the trader can improve his trading performance and evolve. Only by identifying mistakes & peculiar commonalities, the trader learns to lose less than he makes.
7️⃣ - Risk Management
90% of traders lose 90% of their funds within 90 days and under 90 trades . This is a well known statistic in the trading industry and aside from psychological factors, it mainly boils down to incorrect risk management.
If you're looking to survive in this game and have a long, prosperous career in trading. You must have your risk management locked down.
One beneficial risk management habit to develop is to not enter any trades unless they have a risk:reward ratio of at least 1:3+ .
8️⃣ - Trading Plan
Sticking to your trading plan is one way of promoting long-term success throughout your trading journey. Undoubtedly, you will go through many psychological ups & downs, mental battles and periods of low confidence.
Abiding by your own trading plan will help assist in ensuring that you don't step out of line from your own trading rules and allow you to stop yourself from developing bad habits overtime.
9️⃣ - Constant Practice
Professional traders never stop, they always watch the charts, they always monitor the prices, and follow the market.
Trading requires constant TRADING. Just spending one single week on a vacation without charts, you can not imagine how hard it is to return back. The trading skills must be constantly maintained.
NZD/USD : Looking Potential SHORT After Pullback After Puyllback Confirmation can SHORT in downside.
ThankYoU
Are You Cutting Your Winners Short by Trying to be Right?Good trading is a curious mix between taking profits when the market makes them available, and letting profits run to capture big wins.
The problem is that, more often than not, this decision is dictated by emotion rather than reason.
Instead of trusting the statistics behind our edge, we focus on trying to be right on our current position.
Trading is a statistical game
Top traders know their probabilities. They recognise that no matter the quality of their analysis, once they have entered their position, it may or may not go for them.
If they start to second-guess which ones will go and which won’t, then chances are they will cut themselves out of some winners and degrade their system in the process.
Understand the move you are looking to capture
One of the first things to do when developing a system is to get very clear on the moves you are looking to capture.
Once you have identified the types of opportunities you are looking for, you can create a “rule-based” plan to capture those moves with the best risk/reward possible.
You should garner an understanding of how often the moves occur, how long they typically last, and how big the pullbacks can get.
How the need to be “right” manifests itself when exiting
There are three main ways that trying to be right interferes with our exits. This can happen both in the system development phase, and when trading live.
We take profit without a clear exit signal. Be cautious not to take profit just because the market has gone your way. Wait for your pre-determined exit signals, or wait for your objective to be hit.
We trail our stop-loss too tightly. Currency moves can require wide stops, so give the trade room to breathe. It’s no fun being whipsawed out of a trend because of your fear that it might end. Wait for the trade to be well in your favour before trailing your stop.
Moving the stop to breakeven. A breakeven stop can be a good thing. However, if you find you are getting stopped out of winning trades because you have quickly moved your stop to breakeven, then perhaps it is not serving the best purpose.
I’m sure there are several other ways this bias appears in our trading, so remain self-aware.
Journal your interference
Perhaps you are a guru with the skill to know exactly when to get out of your positions.
How to tell?
Make sure you mark in your journal any discretionary exit decisions you make. That way, you can track how well they compare to a “rules-based” approach.
Alternatively, you can allow yourself a small percentage of the position to add and remove at will. By increasing our options this way, we feel good about being right, while still letting our profits run on the majority of the trade.
Good Luck!
