Lompat ke konten Lompat ke sidebar Lompat ke footer

3 Trading Tips That Beginner Traders Often Overlook

When starting trading, you are definitely faced with a variety of successful tips for novice traders. Among the dozens of tips that you can find on the internet as well as in educational materials from brokers, there are some tips that are often overlooked by novice traders because they look less crucial. But these tips are very important to follow. What are these tips?

1. Set emotions and expectations

What is your goal of starting a trading business? Is it to earn a lot of money in a short period of time? If this is your goal, reconsider the decision to trade.

The trading business does have the opportunity to make a lot of profit, but not in a short time and of course there are risks that must be managed to get consistent profit in the long run. Novice traders often overlook the psychological aspects of trading, whereas this is just as important as learning to manage risk and manage funds. With stable emotions, traders will be able to make logical decisions according to market conditions, not just open and close positions. And with controlled expectations, traders will be able to create short and long term trading plans, with profit targets that will ultimately benefit traders.

2. Know your preferred currency pairs

Usually novice traders will immediately diversify in several major pairs or major currency pairs, such as EURUSD (euro/US dollar), GBPUSD (British pound/US dollar), USDJPY (US dollar/Japanese yen), etc. But do not ignore the characteristics and correlations between currency pairs, because usually the price movements of currencies affect each other. 

For example the EURUSD and GBPUSD pairs. Both pairs are positively correlated or move in the same direction. If EURUSD strengthens, GBPUSD usually also strengthens. If EURUSD weakens, GBPUSD usually weakens. Things like this are important for you to understand before choosing currency pairs and starting to enter the market.

3. Follow your trading plan consistently

Plan and consistency. Both are important keys in the trading business, both for novice traders and pro traders. The trading plan you create should include the loss risk limit and profit target, as well as the maximum number of lots you will trade depending on the funds you have. 

Each trader has a different trading plan. Make sure the trading plan you create is in accordance with your risk profile and the amount of funds you have. Also set reasonable targets so that your trading plan can continue to run consistently according to the time frame you choose.

The three tips above are often overlooked because many novice traders are overconfident and overly optimistic about profit. Optimism is good to have, but optimism without control, education, and a backup plan is like trapping yourself to fall into failure. Remember to always expect the best results, but also prepare yourself for the worst-case scenario.

Posting Komentar untuk "3 Trading Tips That Beginner Traders Often Overlook"