The Trading Guide
The Trading Guide is a series of articles that help you develop your trading skills. Learn about the various aspects of trading, from technical analysis to money management, and how to find your trading style.
The purpose of trading is to buy or sell financial instruments such as Contracts for Difference (CFDs) on a wide range of markets, including Forex, Commodities, Indices and Stocks with the aim of making a profit. The key to success is having a clear strategy, which requires a detailed plan that can be followed consistently.
Trading Guide: Essential Tips for Beginner & Pro Traders
Identify your trading style and choose a market that fits it. For example, if your strategy suits conservative conditions, you may consider a market with low volatility. Similarly, if you’re a day trader, a market with high liquidity could be ideal.
Develop a set of entry criteria and scan charts for the conditions that meet them. For example, if your strategy calls for buying during an uptrend, look for a trend line that’s been recently broken on a two-minute chart in the first hours of the market session.
Traders also need to decide when they want to exit a trade, whether it’s to realise profits or cut losses. A price target, or stop loss order, is an important tool for limiting risk, as it allows traders to close a trade when prices reach pre-determined levels. Lastly, diversification is an excellent way to mitigate risks and maximise returns. For more tips, check out our article on Popular Trading Strategies.
Leave a Reply