Active trading is very different from long term buy and hold trading. Here are some trading tips for beginners from community member Jmin Joon Jot. (Note: these pointers doesn't apply for long term investments)
- The market doesn't care, if you're biased and emotionally attached to your trades, you'll lose.
- Always compare the upside and the down side, think of it this way, how much am i risking and how much would i potentially earn in this trade when my exit strategy is applied. your entry and exit for each trades are equally as important.
- Don't get attached to figures, for example, when your trades are winning, you want your account to have a nice 3000 dollars by today instead of a random 2930, so you continue to hold or make force your trades to meet the 3k mark. yeah it ain't good when the OCD kicks in. Just exit your trade when you have to.
- Be open minded, there isn't a point to dis others for their methods of analysis or the way they make their dough (very common in trading communities). Perhaps they know something you don't. Don't go on debate why your way is the best way.
- If the your strategy works consistently for you, stick to it, if you want to venture into new strategy, use a demo account/paper trade instead.Consistency is key.
- Be okay with taking losses, just make sure your wins are more than your losses.
Stay tuned for my next post! I will show you a basic strategy on a particular currency pair.