Best Trading Practices for Beginners
Of course there is simply no doubt about the fact that trading the market can be extremely profitable, and this is true whether you are trading crypto currencies, forex, the stock market or anything in between. However, with that being said, if you are a beginner who is just getting into the world of trading, then you are probably going to be making a whole lot of mistakes. Moreover, there are also some very good trading practices for beginners that you need to be aware of.
Many people just start training without any kind of training or education, and this is of course a problem because you really don’t know what mistakes that you need to avoid and what things that you need to do in order to be a profitable trader. What we’re here to do today is to take a look at the very best trading practices for beginners that will keep you safe and allow you to make consistent profits without too much risk. Let’s get to it and teach you how to be a consistent and profitable trader by talking about some of the best trading practices out there.
Best Newbie Trading Practices
Right now we want to talk about five of the very best trading practices that you, as a newbie, need to be aware of in order to be successful.
Don’t Tell Everybody
OK, so this might seem like a very odd trading practice, but the fact of the matter is that as a beginner trader, you really shouldn’t be disclosing the fact that you have started trading, especially not to friends and family. This might seem a little odd, but the reason for it is because when you start trading, the first thing that everybody is going to ask you is whether or not you are making money.
Sure, if you are a super profitable trader, then disclosing that you are becoming rich by trading is not a big deal. But with that being said, as a beginner you are likely losing money and in telling people as much is just not going to make you feel good. There’s just no point in telling people that you are starting off in trading because people end up being quite skeptical and they might destroy your motivation.
Don’t Trading Personally
When it comes to the best trading practices out there, one of the things that you absolutely need to stop doing is taking it personally. It’s really easy to blame the market for targeting you or to blame your broker for hunting your stop loss. But with that being said, when it comes down to it, there is nobody at fault here but you.
The simple reality is that the market is absolutely massive and there are billions of dollars floating around with thousands of players. There is absolutely no incentive for the market to hurt you or for your broker to care about you.
The simple reality here is that the financial markets are rigged and it’s always a lot easier to lose money than it is to make it. This is nothing personally whatsoever, and if you start getting emotional about trading, then chances are that you are going to end up suffering huge losses due to making emotional decisions as opposed to using rational and logical thought.
Don’t Hit the Ground Running
OK, so many things in life will be beneficial if you hit the ground running, but with that being said, trading is not something that you should start off big. When it comes to trading, you absolutely need to start small and this means investing only minimal amounts of money into minimal amounts of trades.
If you start off trading with $50,000 then chances are that you are going to lose it, especially if you are a beginner. Just start with a small trading account because you don’t want to risk too much money on a single trade and you also don’t want to have to pay huge fees for large trading accounts.
Get an Education
As far as the best trading practices for beginners go, one of the most important things that you need to do is to get a trading education. Without the proper kind of trading education in training, you simply aren’t going to be profitable. The fact of the matter here is that trading, whether it is forex, crypto, currencies, or anything in between involves many different facets.
You need to know all about how to analyze the market, how to use indicators, how to read charts, and so much more. There are also many different kinds of trading, such as day trading, swing trading and more.
There are also many different markets that you can trade in, such as the cryptocurrency market, the Forex market, the commodities market, the stock market and more. The main point here is that you should join some kind of trading school or Academy in order to learn everything that there is to know before you start trading. The more you know, the better prepared you will be and the less risk you will have to deal with.
Risk Management is Key
Perhaps one of the best trading practices that you need to master as a beginner is risk management. First of all, this means knowing when to cut your losses and went to exit a trade when you are wrong. Moreover, this also means knowing how to use stop loss levels and how to set your stop loss levels at appropriate levels in relation to your trades.
Moreover, as a beginner, it is strongly recommended that you do not risk more than 1% or 2% of your total trading capital in a single trade. If you risk a whole lot of money in a single trade and the trade goes South, then you lose it all. Also remember that stop loss and position size are closely related as well.
Best Trading Practices for Beginners – Final Thoughts
The bottom line here is that if you follow the five best trading practices that we just talked about today, then your chances of becoming a profitable and successful trader who has the ability to make money on a consistent basis greatly increase.
If you need help day trading, and what you need is a comprehensive education, particularly on Forex trading, then the best place to be is the Income Mentor Box Day Trading Academy. At this time, the IMB Academy is the most comprehensive, user friendly, effective, and affordable Forex trading school out there.