The only best way one can learn about trading is by exploiting the knowledge from the professionals in the field. No school or college is going to teach you about the trading market, you have got to self-educate yourself and get as much knowledge as you can from effective sources.
For example, this article. I’m going to share some of the important things I learned in my 15 years of experience in the trading world.
Develop a Consistent Trading PlanThe first thing you need to understand is that it’s easier to over-trade than one can imagine. I didn’t even know I was over-trading in my rookie years, it’s a very, very easy mistake to make, especially for beginners, and it’s also a very costly one. You need to have a trading strategy and trading plan criteria so that you can develop some structure and routine into your trading processes, so that way you can tell whether or not you’re over-trading.
Don’t Overuse IndicatorsThe next thing you need to remember is that indicators are a bootless errand. Yes, indicators may seem quite attractive and fancy but all they do is add extra burden for you to deal with. There is no use of analysing them, I started reducing variables instead of adding them and that had a huge impact on my trading outcomes.
Let Trades Play Out Themselves for youHowever, if someone asks me to give them an advice on trading, this ones the first that’ll come to my mind; give your trades time and space to play out themselves for you. One has to be patient with the market and give the trade some space, this means to place wider stop-loss orders. Don’t react at every fluctuation in the market, let it prove you wrong.
Beware of Short Time FramesRemember, short time frames are perilous. A lot of these important things are interconnected, for example, over-trading can be caused by looking at short time frames. The simple reason for the failure of most signals on short time frames is that they have no value as compared to the ones on the higher time frames.
Losses are InevitableThe last thing you need to do is accept the fact that there are going to be losses, you cannot and should not avoid them. Losing a little is still better than losing it all at once. Losses are a part of this field, the key is to make sure that they don’t let your emotions get in the way and throw you off your game.
Master Self-disciplineTo achieve more in the trading world, you need to master your trading strategy and self-control. You have to be focused and passionate about your work, not the profits and rewards that come with it because if you do that you will be prone to making mistakes like over-trading, not giving your trade the time it needs and over-leveraging your account.
