4 Tips for every new trader

Never trade based on someone else’s opinion

This is the most common mistake people make.

People trade based on other people’s emotions because they don’t know how to identify a trade on their own.

Learn technical analysis on your own or choose a mentor who is very much experienced to teach you trading.

Before getting into real trade you should make the best use of paper trading account for at least 6 months and try different strategies. 

To know more about paper trading we have a blog about it here:  Paper Trading

After learning technical analysis and once you prove yourself that you’re a profitable trader then you can switch onto the real trading account.

Following your trading rules consistently and taking a trade on your own with proper risk management will lead your way to success.

Only trade what you can understand and manage

Only invest only if there is some value in it.

You should take trades only if you understand it or else don’t take it because you’ll get many future opportunities in the market and don’t be confused while taking the trade.

If you feel you can forecast the right trend then go for it according to your risk-reward ratio.

Never hold a trade overnight

Holding a trade overnight can be very risky for beginners. 

It can blow your account if your decision is wrong and because of this decision, you can get to see many red days than green days in the market.

Experienced traders hold their trades for overnight because they know what it is and they’re well experienced enough to get the right trend forecasted and make profits. 

That’s why as a beginner keep a rule of not holding a trade for overnight, especially in forex trading.

This is different than swing trading, when it comes to swing trading you’ll be having enough data to justify.

Always have a fixed plan while trading

In order to see growth in your account, you need to buy and sell something.

Although making a profit is the goal, you need to understand the importance of having a plan.

Identify your buy point and sell point and also your stop loss.

I personally have 1:5 Ratio i.e. for every 5% profit I’m risking only 1%. Meaning- there are more reward and less risk and I know that I can manage it.

Potential for profit is greater than that of loss since the loss is a part of trading, there will be losses but having a specific plan you can manage your risk and minimize your losses and maximize your losses.

About the Author

Sheldon Ivish
Sheldon is a Crypto Enthusiast and full-time writer at BeingInvested. He is a B.com graduate with an avid interest in finance and investment management. Attracted to the chaos of trading, Sheldon has invested in BTC, ETH, LTC and XRP for educational purposes.

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