Trading can be a tough game if you are going into it without a plan. While it does have the potential of helping you earn huge profits, it can also lead to huge losses if you don’t know how to navigate the market. One way that you can make trading easier for yourself is to think of it like a job. This makes your finish line to success a lot more approachable and easier. But, what can really help you are some of the best hacks that are especially for beginner traders. These hacks can make your journey a whole lot simpler and also aid you in realizing your goals sooner than you expect. Read on to find out what they are:
- Focus on your core setup
When you are new in the market and have just begun trading, it will simply not be possible for you to master all kinds of trading. A jack of all trades cannot make money, no matter what asset they trade, especially when they are untested and new. In the initial phase, it should be a priority to make a record of all your trades because this makes it easier for you narrow down the best setup and strategy that’s making you the most money and has the highest winning percentage.
- Make use of moving averages
One of the effective ways that you can use for determining trends is through moving averages. They are great for providing signals for buy and sell and can also act as resistance and support. This tactic is also highly useful for beginners because they are not yet trained to identify and recognize any trends. In fact, moving averages can be particularly helpful for figuring out when a trend is over or if it has reversed in the other direction.
- Be aware of the different time frames
In trading assets such as stocks, foreign currencies etc., it is simply not possible for traders to conduct their trades on a single time frame. Analyzing them on multiple time frames is essential. The 5 minutes chart play a very vital role whereas the daily ones may just be the deal breakers because they can only provide you with the bigger picture. Even if they are perfect, such charts may not be of any use because they don’t provide you any context. Other than the 5 minute and daily time frame, it is also a good idea to look for an intermediate time frame such as 30 minutes etc.
- Manage your risk properly
You cannot implement the best trading strategy in the world if you have not managed your risk properly. There is absolutely no strategy that can promise you a win rate of 100% so learning risk management should be a priority if you don’t want all your money going to waste. Only investing a small portion of your account on every trade, following your targets and sticking to your stop losses can help you in proper risk management. When you are just getting started, there is no need for you to invest more than 1% of your account on a single trade until you prove that you can constantly get a return from the market. Bear in mind that your career can come to an end in a few hours with just one bad trade. Risk management rules enable you to make money because you can be right at least half the time.
- Have a trading plan in place
Lawyers will always do their due diligence on a case before they show up in court. A business that doesn’t have a sensible business plan will never be able to get a loan from the bank. This also applies to trading. Before you put any of your capital at risk, you have to have a trading plan in place. Before you enter a trade, a trader should know how much money they will risk, what price they will enter at, what is their stop loss and also their profit targets. You can write down these things when you are starting out because this can help in learning from mistakes.
- Keep control on your mental capital
Just like the capital in your account, your mental capital is also of the utmost importance. Losing your emotional control and focus will just destroy your career as a trader even before you have truly begun. Revenge trading is one of the easiest ways of wasting your mental capital. This is the mental and physical capital that you spend on random assets to make back what you lose. The key is to stay disciplined, accept your losses and move on.
- Continuous support and education
It can be extremely challenging to trade by yourself and your learning curve also increases. As a matter of fact, it is not just beginners who need support, but also skilled traders who may require assistance every now and then. Thus, finding a broker that offers you continuous support and education is important. Why should you make all trading mistakes yourself? You can also learn from the experience of others. A look at 10-Capital review will show that the broker gives you access to extensive educational resources including webinars by qualified experts that can be immensely valuable in the long run.
- Consider the strongest opportunities
Beginners often tend to jump on a trade when there is even a slight hint of an opportunity because they don’t want to miss out on something. However, it is certainly better to take some time to assess the opportunity to figure out if it is truly as good as it seems. Always check confirmation signals before you make the trade. Otherwise, you will realize later on that you were just chasing phantoms and they will cost you money.
These trading hacks can be quite useful for beginner traders who are fresh into the market and are overwhelmed by the opportunities available. They can figure out what to do and what to avoid, which can maximize their returns.
