Investing & trading in financial markets like stocks, cryptocurrencies, forex etc does become so much full of stress for people whenever they start to skip all these important Investing & trading rules in their life. Today in this topic we are gonna talk about top 20 prominent things those should be followed by every single beginner trader in this world they are as follows:
- Know your trading character: it does become so much imporant to undrestand that what kind of trading character suit to us before investing and trading in stocks, or in other financial markets. For example there would be no sense if you are just playing in financial markets for fun, this is not a game ok? Its important to know that what kind of trader you are. In simple words just try to find out your comfortable trading style. Don’t do haste, take your time to understand your trading niche.
- Emotion Control:This is one of the another important thing that should control during trading and investing otherwise you may lose all of your fund. I have put this on top because 70% of trading success will be in your hands if once you have controlled out your trading psychology. 99% of trader’s lose money in financial markets due to poor trading psychology. Stay away from greed, fomo fear etc.
- Risk Management:Risk management play an vital role in our trading and investing. Risk management a term in which we have to do a solid management of our risk. Like taking small percentage amount of risk per trade would be better for all traders and investors in financial markets. I would prefer to follow 1% to 2% max amount of money risk per trade and investing in your trading account.
- Trading Strategy: A trading strategy has its value no doubt but so many trader’s has a very wrong sence in financial market that all the trading success come from the strategy. but this is totally wrong, as I had said above 70% success come up from the emotion control and trading strategy just play a 10% role rest 20% come from Risk management and money management.
- Technical Analysis: Learn support and resistance analysis, they are the basics of any financial markets investing and trading. Learning technical analysis would make our understanding more easier and worthy about trend analysis, financial markets tops and bottom,future price prediction etc. Technical analysis is special because most of analysis does contain the use of TA.
- Trend Analysis: Following trend is one of the best method of trading in all financial markets, there are three types of market uptrend, downtrend, sideways. A sideways market can be a part of a trending market also, so here we have a solid advantage to make money from the trend trading. Moving average, Fibonacci, these two are highly recommended for traders and investors.
- Understanding Buyers & Sellers: This is also one of the another important recommendation for traders understanding big whales or big players would be really very necessary, it does not matter that what method we are using its useless until we don’t have a good sense that big whales are on a buy side or on a sell side. Always try to follow the footprints of big players. They are the real market maker’s who move the market up and down.
- Keep Patience:There is a saying that patience is the key of success and the same saying we have to apply in stock ,forex,cryto trading also, in financial markets trading opportunities can’t be seen all the time, if today market is up it does not mean tomorrow again market will be up. So keep patience, wait for the right market.
- Follow Journal:keeping a record of your trading transactions is also prominent. It can help you to reduce your trading mistakes, if you don’t want to repeat a same mistake again and again then keeping a trading ledger will be a best choice for you. Just note down your daily or weekly trading entries, exit points, reason of loss etc.
- Over Trading: Don’t do over trading, always avoid over trading, don’t ever get over excited during profitable trades session. over confidence is not good at all and it can lead to over trading. Trading and even over investing is not good at all. Know your trading patterns deeply make a good command on them and wait for them to come back again. Don’t put your money on a pattern which does not related to your trading pattern.
Final Words: Doing right things consistently in the financial markets would bring a consistent gains possibility for us.Consistent gains depend upon the right timing and right understanding of the market plus we need a good psychology control, a good management, good strategy too.I hope you like the topic if you have any doubt or query just drop your comments below in coment box,we are always here to assit you.