10 tips for new traders

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1) Implement a strategy and stick to it
Make as trading plan and implement the strategy or method that you have formulated. First make few paper trades, focus on one or two stocks and understand the trend of each stocks. Review your performance weekly and fix trading techniques that don’t work.

2) Preserve your capital
The real key to successful trading lies in capital preservation. You’ll always make money if you have the proper strategy, but you need money to make money. Don’t bet more than 3-5% of your capital on a single trade. Let profitable trades run as long as possible, but cut loss making trades quickly.

3) Use Stop loss

Setting a target is also important but setting a STOP LOSS is critical. Without stoploss you risk losing your entire in a single trade.

4) Always have plan

Becoming a successful trader takes time, preparation and dedication. Develop and implement a trading plan or build a system. Stick to the plan and remember one or two initial losses don’t mean your plan is wrong. Patience is key here.

5) Let your profits run, run and run

Never cut your profits short. Many newbies can’t resist the sight of a winning trade for a long time. Set a trailing stoploss to increase your profits. Letting winning trades to run is an effective way to increase your profit/loss ratio, which in turn boosts your returns over time.

6) Don’t turn profitable trades into losing ones

The market is open Monday to Friday. Keep moving your Stop Loss forward above your entry point to secure your investment, ensuring that you at least break even if the market goes against you. Monitoring a profitable trade and setting a trailing stop loss helps you avoid a loss

7) Seek professional insight

There a plenty of helpful trading educational materials, webinars and live coaching. Learn before developing your trading plan. Utilize real-time, research-based information that you can use to make winning trading plan.

8) Plan your trades in advance

Developing a trading plan not only helps you manage risk, it also prevents you from jumping into any trade because the price is suddenly falling or rising. Know the desired entry point, stop loss and target before you open a position. Planning your trades in advance removes emotion and compulsive trading.

9) Go with the Flow, Trade with the Trend

Always trade with the market’s momentum, don’t go against it. When a trend emerges, other traders are likely to jump in, therefore boosting the trend’s momentum and pushing your trades in the right direction.

10) Don’t waste time on a losing trade

Many novice traders get emotional with their open positions, especially the losing ones, begging the market to somehow reverse, so they could atleast break even. Cut your losses as soon as your plan goes wrong.


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