So you want to take your trading to the next level. Here’s some points to consider.
• Decide if you are a Gambler or a Trader – this may seem obvious; however, just about every Trader who has screwed-up, admits to having gambled during the trading process.
• Trading Mentality – Ask yourself, do you have the necessary mental, social and emotional attributes to be a Trader? It’s not easy and it can be a lonely existence, there are lots of successful Traders out there. Can you compete with them? You need also to be emotionally detached from the event and fully concentrated.
• Learn – Education, education, education, learn, learn, learn, practice, practice, practice. Nothing new here, but this site has an enormous amount of expertise including: excellent trading videos, information, feedback, suggestions and comradeship. Trading is a constant learning process and on this site you have free access to valuable information.
• Losing Money – Initially, most people will lose, so it’s paramount that you only trade with money you can afford to lose. I know it’s been said numerous times before, but if you only trade with money you can afford to lose and use these Top Tips, then you will deal with the emotive side of losing much more effectively and you should then be able to progress to profitable trading.
• Small Stakes – Initially, you are strongly advised to start with small stakes. This will allow you to make errors and also try out new strategies without losing significant amounts of money. You can even paper trade to get a feel for the game.
• Accept Small Losses – Losses are part of the deal. You will not make a profit with every trade and taking a small loss will often save you large amounts of money in the long term. Often, accepting small losses is one of the hardest actions to do. If this is the case with you, go back and look at Tip number One.
• Exit Strategy – Before you trade, have an exit strategy in mind. Too many individuals enter a trade without considering an exit strategy. What will you do if you computer or Internet connection goes down? How many ticks loss will you accept before you ‘get-out’?
• Take a Profit – A profit is a profit, even a very small one. Profits grow and “No one ever went broke taking a profit”.
• Hedge – Always hedge any profit or loss. Doing this, will allow you to regularly assess your trading strategy without the very large swings that will occur if you don’t hedge.
• Reflect – Reflect on your trading ability and competence to do the job. If you are not making a profit be honest with yourself and reassess the situation; are you really adhering to these tips?
• Deviation – Many Traders profit by doing the opposite of what the crowd will do. Overaction, can easily be exploited by deviating from the norm.
• Consider Stats – This will allow you to make a balanced judgement on how an event may progress. You will then be in a position to perhaps make a profitable trade.
For more information on this and many other proven profitable trading techniques visit In Play Trading