To become a professional, it is necessary to go a long way and fill a huge number of bumps. Still, it’s better to try to avoid them. After all, you don ‘t want to lose money, which often had to be postponed for more than one month or even a year. In fact, any program of study in any specialty and is designed to reduce the number of misfires in achieving some goal, regardless of what activity it belongs to.
For example, when learning to play chess, one of the first lessons is to avoid a baby mat when the king finds himself surrounded in several moves by enemy figures.
Children’s Mate In The World Of Trading
So what is the equivalent of a baby mat in the trading world? First of all, it is an insurmountable desire to purchase shares if the cost starts to rise. This childhood mistake resulted in huge losses to traders.
The main rule of successful trading is to open a deal only after the price has reached a minimum or a maximum depending on in which direction you think to open a deal. The problem is that determining when such a moment comes is an unsustainable task for many, although so many books on technical analysis have been produced that one would already have to learn to define. Everything is possible, it just takes time.
Beginners first need to understand one simple thing – after raising the value of the asset can fall. Now imagine you bought apple company shares when the value started to increase. But while you realized that there is such an opportunity, you bought securities right at the peak. And then the cost started to decline. Here to such effects may lead non-compliance with the rules of “we open deals only at the beginning of the trend or even before it, if such is expected”. Newbie is not guilty, he could just do not know.
What To Do To Avoid The Mistakes Of The First Deal?
1. Don’t rush to earn until you learn at least at the basic level. And the only way you can do that is a demo account. Most brokers give the opportunity to trade for free on virtual money. Everything else is just like with experienced traders. The demo account also allows you to rehearse trading strategies when you have already gained experience and skills.
2. Be sure to keep an eye on how much money you spend. The main rule of trading (yes, there are many) – do not put everything. Even experienced players can lose their blood money due to such a mistake, and the novice will do so guaranteed. Therefore, it is not recommended to exceed the percentage of trade capital. Of course, there will be little money to pay the deposit, and therefore the percentage of use will be difficult. In this case, deposit the minimum amount possible.
3. Try to develop your own trading strategy. To do this, trade different instruments and try, experiment. And not only with specific assets, but also time of trade. You need to decide that you are more comfortable. But it is recommended to try first on longer intervals, because then it is easier to predict the movement of currencies.