1. Learn the basics first
- Understand market terminology like: liquidity, supply and demand, margin, leverage, candlestick patterns.
- Read trading books like: "Trading in the Zone" (Mark Douglas), "Technical Analysis of the Financial Markets" (John Murphy).
- Follow reliable sources like TradingView, CoinMarketCap, Investopedia.
2. Choose the right trading style for you
- Day Trading: Opening and closing trades on the same day.
- Swing Trading: Holding trades for days or weeks.
- Long-term investing (HODL): Buying and holding for months or years.
3. Use a clear trading plan
- Define your goals, entry and exit strategy, risk/reward ratio.
- Example:
- Entry: When breaking resistance with high trading volume.
- Exit: When achieving a 3% profit or a 1% loss (3:1 ratio).
4. Commit to risk management
- Do not risk more than 1-2% of your capital on a single trade.
- Use stop-loss orders in every trade.
- Avoid high leverage (especially for beginners).
5. Market analysis (Technical + Fundamental)
- Technical analysis: Studying charts, indicators (like RSI, MACD, moving averages).
- Fundamental analysis: Following news, financial reports, technological developments.
6. Start with a small capital
- Don't start with all your savings; test your strategies with capital you can afford to lose.
- Use a demo account first to test your strategy.
7. Control your emotions (trading psychology)
- Avoid greed (FOMO) and fear (Panic Selling).
- Stick to your plan and do not trade based on emotions.
8. Keep a trading journal
- Record every trade (reason, outcome, mistakes).
- Continuously analyze your performance to improve your strategy.
9. Follow news and developments
- Asset prices are influenced by political, economic, and technological news.
- Follow sources like Bloomberg, Cointelegraph, Twitter (for cryptocurrencies).
10. Keep learning and adapting
- Markets change, so continuously develop your strategies.
- Learn from your mistakes and do not repeat them.
Trading is not a quick path to wealth; it is a skill that requires patience and discipline. Start applying these steps gradually, and you will notice significant improvement in your performance as a trader.
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