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Top 10 Amazing Tips for Novice Traders

As an amateur trader, you will face different types of problems in the trading market. This happens because of a lack of knowledge about the market. You always think about professional traders. A question can be raised about what professional traders do. There are some tips you need to follow which can help you be a professional.

Source: The Startup Magazine

1. Manage Your Funds

Remember that trading is controlling your assets and your time. Therefore, if you are making more with your trading journey, you have to learn how to manage your investment. One important step you can take in this direction is setting funds aside. You will control how much money you are willing to risk on your trade. Manage your funds in your trading account, have separate funds that you can risk losing, and click here to find how you can do it yourself.

2. Overcome Your FOMO

Do you know what stops novice traders from reaching their full potential? The “Fear of missing out.” No matter who persuaded you to come into trading or which personality pushed you to start trading, remember that it takes time to be on the top. You can’t invest one day, trade the next day, and come out as a billionaire the very third day. The gist? Don’t ever think about investing all your money at one time. Putting more money doesn’t ensure that you are going to make profits.

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3. Holding Your Ground

Remember that one of the most difficult things to control as a new trader is overcoming your fear. Even after making the right trading decision, you might think you have made the wrong call and risked your money. Another factor is the volatility of the market. One day it might be on the moon and can crash back to earth the very next day. The first thing you have to remember is to leave your emotions at the bay. Don’t let the emotions overcome your logical decisions.

4. Be Serious

This is not wise thinking that trading is an easy task. If you think so, you are wrong. You have to push your effort to the next level and take the trades with caution. If you think with low capital, you can make large profits; then this is your wrong view. Keep on testing your skills on the demo account. Find the key mistakes, and revise your strategy. Many traders want to make large profits within a short time. This is not possible. Try to take the trade seriously; you will get your profits.

Source: Bit Rebels

5. Give Yourself Time

The trading industry is a very big place. Many traders are trading in this market. Skills are important to make profits. If you do not invest time, you will not be able to improve your skills. You need to know about the use of technical tools and indicators. This is very necessary to know how to manage risk. If you give time to learn about the market, you will be skilled. If you think about the short time trading, you will not be able to be skilled. Without proficiency, you cannot be a millionaire trader. Always remember, ETF trading is more like an art. You have to be precise with your actions, or else you will lose money.

6. Learn from Your Previous Trading Experience

With your experience, your strategy will be changed. If you do not keep a record of your previous trading, you cannot learn new things. You need to know what the reason behind your failure is. This is also necessary to know what types of changes you need to make in your strategy. Observe your previous trades, and analyze them. Search your mistakes. Keep the trading journal. It will keep you up to date. There is available information about the trading market.

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7. Make a Trade Checklist

The checklist will help you to reduce loss in the trading market. Before opening a trade, check your checklist. This needs to include your exit and entry, news announcement, risk-reward issue, the direction of the trend, and so on. You must add that you are ready to accept the loss in your checklist and not take any decision emotionally.

8. Be a Pre-planner

Being a pre-planner is essential to be a professional trader. Follow the market. Then make a plan for the whole day. Set your time alerts, update your tools, and add some new ideas if necessary. After that, execute your plan in the market. If you see the market changing without any notice, make changes to what is required.

Source: IOU Blog

9. Follow The Plans

Continuing the point mentioned above, you have to understand the importance of the plan and sticking to it. You see, the most-successful trading experts are the ones who move fast but don’t think fast. What does it even mean? In simple terms, experts don’t make decisions on a whim. They have complete information about the market, make plans accordingly, and don’t try deviating from them. The more they follow their plans, the better they understand whether their strategies are working or not. As a beginner, after coming up with a plan, the following is the most important thing.

10. Be Responsible

Blaming others for your trading is a stupid thing. A professional trader always takes responsibility. They do not think about others’ faults. You need to be aware of your faults. Your decision is the main thing that can influence your trader. If you think your broker is responsible, then you are wrong. You have chosen your broker. You need to remember that you have chosen your preferred broker. You have made your plan. So, control your emotions which influence your trades. Do not blame your family and friends. They are not responsible for your losing streak.

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Always remember that if you are mentally strong, you can control yourself in a difficult situation. The trading market is constantly changing. So, try to observe the market peacefully. If you need refreshments, go to some places where you can relax. Then think about the plan, and find out where the mistakes are. It will help you to go in the long run in the trading market.