After being in the market for 12 years and 5 years as a stockbroker, I would like to pen down some tips for all my clients, friends, followers and visitors of this blog.
I'm not commission based and I don't earn from the trades that you do. It's my passion to teach and share, but I have to thank you all for using my account when you trade. It's your support that allows me to continue to be your stockbroker serving you year after year.
10 tips:
- One of the biggest mistakes you can make, especially after having had a number of successful trades, is thinking you know what you are doing when you actually don´t. This will be the cause of every trading error you have the potential to make.
- It takes absolutely no skill at all to place a winning trade. But it takes skills to consistently do it.
- Save the innovative strategies and custom indicators when you have learnt how to trade. Master the basics first, know your 'pattern' and 'reaction'
- Do not judge a trade on its result. A good trade can turn out a loser. A bad trade can turn out a winner. Make sure you have the cash to float it out.
- Don’t bother with making money in the beginning. It should be your goal to make good trades. When you can make many good trades, money will flow to you automatically
- In trading, there is no supervisor or manager reviewing every decision before it’s made. Success, for better or worse, is totally self-dependent. This is not for everybody. Not all can be a full-time trader, find out if it’s for you first.
- Though many people are on technical analysis, don’t underestimate the impact of fundamentals on price action. Understanding them will increase your edge in trading.
- Don’t overemphasis the importance of finding the best trading system. Equally important are psychology and money management.
- Online trading groups can be good learning tools and from time to time very entertaining, but beware of entering trades blindly. It may be a totally different plan for what you would normally do.
- Eliminate your mistakes. Do this on a daily basis, mistake per mistake. Soon you will run out of mistakes to make.
