We all wish that we had a certain list of things that would instantly get us from zero to hero. Despite the fact that this is not possible, there are however some ways that could help traders enhance their trading skills and make better informed decisions.
Watch, listen, read
A good trader is one who invests in education. And by “invest” we mean time. Spending time on learning the basics: terms, chart types, assets is what will help traders make better informed decisions later on. You may find different sources of information and pick the most suitable for you. Some traders may prefer articles and books, some like to watch videos and see different strategies applied in practice. There is no right or wrong way of collecting knowledge, as long as you take the time to do it.
One may dedicate a certain time of the day or week to learn about trading. It may be 15 minutes a day or an hour a week – whatever is convenient. Take that time and make sure you learn something new each time. The results might surprise you.
Practice, sleep, repeat
One may read many books and learn about dozens of strategies, but without actual practice it has very little worth. What one may do, is immediately after learning about a certain tool or strategy, go and apply it in practice. It might help to feel more confident about the way it works and how it can be used. The Practice account on the platform is created exactly for that: it is free and can be replenished as many times as needed.
Treat trading like a business
Many traders consider trading to be their hobby, but quite often it means that after several unsuccessful attempts traders either give up or continue trading from time to time, with no real approach or strategy.
On the other hand, treating trading as a part-time business might help you be more serious about it and have a real commitment to learning. Just like owning a business, trading is risky and involves losses and expenses. With that said, having trading as a part-time business and not a full-time job will take away the pressure, as your paycheck does not depend on it. Balance is key.
Keep a trading journal
If you are not learning from your experience, you are not learning at all. Keeping a trading journal with records of all past deals will help potentially avoid making the same mistakes over and over again. Writing down the details of each deal allows to trace the progress and compare current trades with past performance.
In a trading journal, one may include the date, deal specifications, market conditions – any information that can be analyzed later.
Protect your capital
Building a trading capital takes time and effort and protecting it from risks is very important. Keeping notes of deals will help you understand your strengths and weaknesses. It is essential to come up with a risk management plan based on that.
Protecting funds does not mean never having losing deals – it is inevitable and happens to every trader, as trading itself is a high risk. What it actually means is taking emotions under control and sticking to the trading plan that you created for yourself.
