Hello new traders
I want to give some tips for new traders,
This is bases on my mistake that I have done in the start of my trading journey
1. TREAT TRADING SERIOUSLY
If you want to become a professional trader, you must approach it with the rigour it demands. You can't live the millionaire lifestyle with a 9–5 work schedule, as I have stated on Twitter.
Check your priorities and make sure they line up with the things you do every day.
2. AVOID SHORTCUTS
There is no getting around putting in the hours if something seems too wonderful to be true.
There is no shortcut to being rich quick, and any that you may do will ultimately cost you far more in terms of time and money.
3. GIVE YOURSELF AT LEAST 5 YEARS
You won't turn into a successful trader in a matter of weeks or months. According to my own experience, it takes years for someone to develop the abilities required to trade profitably over the long run.
And when I say that, I don't just mean having the technical know-how to understand charts and perform technical analysis. How you handle losses, adapt to the always shifting market conditions, and work on your mindset are far more crucial.
4. REVIEW AND ANALYZE YOUR TRADES
Never have I encountered a successful trader who did not keep track of their trades.
Do you recall the last ten trades you made? The obvious response, if you're like me, is NO!
If you don't have a mechanism to keep track of every mistake you make, how can you expect to learn from them? To determine what trades are successful and unsuccessful, you must monitor and analyse them.
You must keep a trading journal if you take trading seriously.
5. DON’T RISK MORE THAN 3%
Losing runs will occur. Plan properly as a result.
When your position size is excessively aggressive, your account will suffer if you suffer 4 consecutive losses.
Before you sit down in front of your trading platform, be sure you have established explicit position sizing guidelines.
DRAWDOWN RECOVERY RATE
5% 5.2%
10% 11.1%
20% 25%
30% 43%
50% 100%
70% 233%
80% 400%
6. NO SYSTEM-HOPPING
One of the worst sins a trader can commit is system-hopping.
There isn't a trading strategy out there that will perpetually start printing you money.
Instead, have the ability to deal with the flaws in your existing trading strategy. Understand how to reduce your losses and let winners run. Learn how to deal with losses because even the best traders have loses occasionally in the world of trading.
7. HAVE A TRADE CHECKLIST
Since reading Marty Schwartz's book on the markets, I have maintained a trading checklist.
Use checklists to make your trading process more objective and to cut down on errors.
You run through your checklist, which contains a list of all your trading rules, before you press the buy or sell button to make sure you haven't forgotten anything.
Trade Checklist
#1 The setup meets all my entry criteria
#2 The trade is in my trading plan
#3 The trade is in the direction of the trend
#4 No news announcements ahead
#5 The risk/reward is acceptable
#6 I feel good emotionally and physically
#7 1 accept to lose
8. PLAN ALL TRADES IN ADVANCE}
You must schedule your trades in advance before you can even think about employing a checklist.
I go through all of my currency pairings every morning to look for any potential trading chances for the day. I create if-then scenarios for trading ideas, update my technical analysis, and set up price alerts. Then I just relax and wait to see if the price moves in the direction I need it to in order to execute my trading strategy.
9. TAKE FULL RESPONSIBILITY
YOU are accountable for anything that transpires in your trading. If something doesn't go as you expected, don't put the blame on your broker, insider trading, the media, or your wife. The only person at fault is YOU.
When you realise that trading is under YOUR control and that YOU have the capacity to change it, you will feel empowered. Blaming external factors will result in the loss of such power.
10. KEEP TRADING FUN
Your emotional capital is more crucial than your financial capital, and most traders would give up completely if they run out of mental capital.
There will be frustration if you keep making the same mistakes, don't see any results, and lose money for years.
As a result, follow all the advice given in this article and allow it lead you on your trading adventure.
This piece is not intended to be financial advice. Before making an investing choice, always do your own research and speak with a qualified advisor.
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I'm grateful.