Uncategorized Best Trading Tips and Strategies for Success May 18, 2019May 19, 2019 by Lilly Haris I think you’ll agree with me that trading financial instruments, despite being one of the most hyped investment methods, is still arguably the most misunderstood. Price moves and intrigues in the market, as insignificant as they may appear to be on the surface can have far-reaching implications. How lucrative your trades turn out to be will largely depend on how well you play your games. This, in turn, will depend on your strategies and knowledge of the best trading tips for success. Below are some of the best tips and principles to help you achieve more success with your buying and selling decisions. Information rules It’s not enough that you have enough knowledge of the most basic procedures involved in trading. In this sector, you have to understand that information rules supreme. You have to make well-informed decisions while armed with current news and events that can impact the stock market. Start by making a list of your choice stocks to follow the news that affects both the companies and markets involved. Business news from credible financial websites will also suffice as well. Setting aside your funds… and time! Trading requires enough funds and ample time. The best trading tips would touch on helping you set time and money aside for trading success. On funds, it will depend on how much you’re willing to risk at any point in time. The rule of thumb for most investors is to commit no more than 1% to 2% of their account for a particular trade. This goes a long way to help minimize losses because, at the end of the day, everything is still speculation. You also need ample time to track market news and opportunities so you can always make your moves at the appropriate times. Starting out on a modest note Every expert was once a novice but when you’re starting out, you don’t want to dip both feet in the water. For beginners, focusing on a single stock or a maximum of two during trade sessions make it easier to spot opportunities. More and more brokers are now even making it possible to invest in fractional shares as well, making it easier to make more moderate commitments. Being cautious with penny stocks As an investor, you’re probably on the lookout for excellent values from deals with low prices. You may be tempted to look at penny stocks in search of prospects. These OTC stocks should however not be jumped at without proper research and analysis. While there are opportunities here, most of these stocks have a very low probability of being the winning stock for your big breakthrough. Being clear with entry, exit, and risk management In becoming profitable, you can’t and don’t have to win at all times. It’s however important to make more wins to cushion the loss. This is more reason why we advocate that your risks on each trade should be limited to a set percentage for better risk management. Again, you have to be clear about entry and exit rules as well, which of course leads us to the next of our best trading tips -discipline! Being disciplined You should have a tested and trusted trading strategy and you should endeavor to stick by it. More than chasing the money, you stand to gain more with a pre-defined formula and consistent discipline. Don’t let your emotions get in the way of logic. To become more successful, investors have to master the art of keeping the emotions of fear, hope, and greed out of the way while planning their trades. This quote from Michael Marcus comes to mind; “Every trader has strengths and weakness. Some are good holders of winners but may hold their losers a little too long. Others may cut their winners a little short but are quick to take their losses. As long as you stick to your own style, you get the good and bad in your own approach” Take responsibility for whatever happens! Trading psychologist, Van K. Tharp once said; “A peak performance trader is totally committed to being the best and doing whatever it takes to be the best. He feels totally responsible for whatever happens and thus can learn from mistakes. These people typically have a working business plan for trading because they treat trading as a business.” Regardless of whether you’re trading stocks, Forex, Futures, or stocks, you have to be ready to hold yourself accountable and responsible for your decisions and actions. Price can take a hit at any time and when you fall victim to this, blaming the market that hardly knows you’re there or pointing fingers elsewhere is the least mentally empowering thing you can do. On a closing note, Warren Buffet, the Oracle of Omaha echoed our feelings when he said; “You don’t need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beats the guy with 130 IQ.” It’s more about developing excellent researching skills and establishing good trading habits to make market-informed decisions. These are our best trading tips and strategies which hopefully will help you get a better shot at becoming a more successful trader. Why Invest in Marijuana? Lilly Haris Related articles Best Energy StockBest Value Stocks 2019Best Marijuana Stocks to BuyWhy Invest in Marijuana?