Most people, who aim to make this a career that brings high profit, make sure they devote enough time for thorough planning. However, the beginners hearing this piece of advice usually ignore it as they are eager to jump in and start making money as soon as possible.
So, rule no.1 is to stick to a trading plan. This plan is a written set of steps which define a trader’s entry, exit and ways to manage money. Creating the trading plan might be time-consuming but it’s definitely worth the effort.
Moreover, the modern technologies have tons of software that can help you to do it and even test the trading idea. The software tries it out on the older data and determines if it’s a legit idea. However, you’ll have to stick to the plan to be a winner.
Rule no.2 presupposes you treat trading as your business. As soon as you stop treating it like a hobby, you’ll see how many possibilities are waiting for you. The key to success is to take it seriously and treat trading like a business. Commit to it and invent strategies that will boost your profit.
Rule no.3 is being modern. In the age of technology, it’s a shame to ignore it. This business is very competitive, so you should take advantage of the technologies you can access. You are able to view and analyze the markets from the comfort of your smartphone. The technological advances are sure to make you more successful.
Rule no.4 is to keep your capital safe. Protection of the trading capital is essential for this kind of business. If you lose everything, it will take time to get the initial capital again. However, protecting it does not mean you cannot lose the trade. Losing is a part of your business. The sooner you accept it the less you are going to worry. Protecting capital usually implies avoiding the unnecessary risks.
Rule no.5 is to keep learning. Always stay a student and focus on learning more day by day. The knowledge in this sphere gets outdated very quickly but in order to be successful, you need to understand the market and all the details of the process. Read the news and researches to stay up-to-date. Train your instincts and follow the world news. They influence the financial market a lot.