SHARETIPSINFO >> Articles Directory >>Tips to Grow Your Trading Account
If you are a not a seasoned stock trader and is nascent in this field, looking to get into the market as a trader to gain consistent profits; then here are some tips for you. These rules will get you on the right track to stay with the higher time frames and you will find your trading more profitable and less stressful.
Currency trading can be a very profitable investment with forex, but you have know the tricks to assure that you grow your nest egg rather than shrink it. Our aim is to direct you in the right way to learn about leverage, make you understand and help you in predicting the currency market, and also, to be prepared for the worst.
First and the foremost important tip is to know about your leverages. Leverage can either help you or hurt you. It allows traders to be in markets they could otherwise not afford to trade in, but with high leverage ratios of 200:1, you can either make a lot, or lose even more. So be careful when using leverage and spend some time learning and understanding leverage.
Your consistency is more important than the amount of your profits at any given time. It is imperative to learn how to recognize strategies that produce consistent profits, no matter how small, rather than earning profits from individually large trades, is the key to trading success. You must always keep a check on the charts. Never trade anything lower than 4H charts and if, you are loosing the consistency then this will help in maintaining it. The thumb rule here is - the higher the time frame the easier it is to make money, you can easily grow your account by 10-15% each month only taking 2-4 trades a month.
It is very difficult to understand the market trends but, you have to learn the techniques to predict the market changes. This technical analysis will help you in long run. These skills include chart analysis, pattern recognition, momentum and trend analysis. Recognizing patterns that often lead to price reversals will help you to know the perfect timing to buy or sell and maximize profits. Remember your money should not be wasted and hence, always take the ‘A’ trades. Patience is the key to this; keep in mind that the markets will be there longer than you so, plan wisely and wait till the perfect setups, then pull the trigger without hesitation.
With the intense pressure, sometimes you fail to realize trading profits start out small, and we have to be tough, to endure the slow start and resist the temptation to either make a huge risk or to give up altogether. Slow increases are the way to successfully and consistently grow your trading account. Start increasing your position size slowly from 1 contract to 2 contracts. Growth of your trading account also, depends on your risk factors involved in it. Never commit the mistake of risking more than 3 per cent of your account. And keep you core transactions very simple that helps in clarity of system and also, you any time back test your trading to boost you self-confidence.
The most common problem with most the traders is indulgence in over-trading. Most for you would be more profitable if you took only 1-2 trade a month and no more, this would force you to plan that trade with immense forethought and more often than not it would be profitable. Be smart to cut losses short and add to your wins. Your gains should be twice the size of you losses, preferably three times the size. Start trying to build on profitable positions instead of taking profit as soon as it appears.
Maintain minimum indicators and start learning how to read price action, it will reward you greatly. Unpredictability does not only persists in trading but, there can be other factors also affecting it. Therefore, always have an emergency contingency plan for – internet connectivity loss or power failures. Also, consider a battery backup for your trading computer. Keep an account of all these – contact details of your broker, account number and password. You should write down your open positions and orders in the event of an outage so you can call your broker. It is always a good idea to have a stop-loss order in place for any open positions.
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