Becoming a digital trader is not difficult, but it requires concentration, patience, drive, practice and discipline. When people search the internet for successful traders, they see a huge list of millionaires and get excited. Please, do not approach digital trading as a ‘get rich quick’ scheme. Like any start up business, Instead, try following some of the tips below.
Make important trading decisions
Which brokerage company to use?
Scout for a credible and reputable trading company. Look for customer reviews of different firms and see which is best for you. The credible trading company allows you to create an account and deposit cash. You will then use the cash to buy and sell assets you have interest in.
Before selecting a trading firm, read and understand their terms and conditions. Check how long withdrawals take to be completed and any extra charges you might incur. Understand wagering requirements and consequences for lack of adherence. Also, consider the maximum and minimum deposit and withdrawal limits.
What are your trading goals?
What is your reason for trading? Are your goals long-term or short-term? You have to be keen and disciplined, especially if you intend to be a long-term successful digital trader. You cannot afford to approach digital trading with real money as a hobby.
How much can you afford to lose?
No one goes into digital trading with the intention to lose. However, it is advisable that you do not trade with money you cannot afford to lose. For example, taking money from college funds account and using it to trade. People have ended up in depression and broken families because of trading using life savings and money from other important accounts.
To become a successful trader, ensure that you first learn all the basics of trading. Educate yourself on all the do’s and don’ts of trading by reading books and watching tutorial videos. There are plenty of learning material available on the internet including pdf, YouTube videos, websites for investment companies like CMC and e-books. You can also talk to people who are experienced with the different forex markets for one-on-one tips. Ask them about the mistakes they made as beginners and how you can become a better trader.
Learn the strategies, pick one and stick with it
As a beginner trader, one of the greatest mistakes you can make is frequently changing strategies. Using many strategies will easily confuse you. It is better to test all of them, pick a favourite then work on perfecting your skills. There are many money strategies in digital trading from the Martingale to using R.S.I.
Bottomline, you need to learn your strategies and master them before you can trade with real money. Most trading platforms allow members to practice trading, using virtual money. Do not be quick to change strategies after some loss or because you think you will find an easier one.
Do not overwhelm yourself
Trading, even using virtual money can be overwhelming. After you have experienced some loses, stay calm and decide whether you are fit to keep going. If you are trading with virtual money, you can go on, as most forex trading platforms offer a ‘refill’ once the trial funds are done. Do not waste time getting frustrated over losing, instead keep your head in the game and try to establish where you went wrong.
About trading robots
Maybe you have heard of forex trading FX robots. While some of these robots might be useful, it can be difficult to significantly stay in the money, when the markets change.
Pay attention to news
To become an even better trader, you have to stay informed. Stay updated on the news constantly to find out how the markets might be affected. Laws passed, events and words uttered by financial ‘sharks’ can cause huge changes in the markets, thus affecting your trades.
Check the trend and volatile markets
Volatility is the life of digital trading. Pay attention to the trend of your assets. Trade with the trend! Be careful when the markets are volatile and make a volatility analysis to add to your strategy.