Are you looking for effective and applicable trading tips and tricks?– Then this page is for you. With over 9 years of experience in the financial markets, the best trading tips for beginners are presented in the following text. Avoid high losses to improve your trading. Knowledge is the power of exchange trading, so you are a few steps ahead of other traders.
Use the economic calendar and news
The first trading tips and Tricks is covers the economic calendar and news. An economic calendar is an essential tool for any trader. Whether you are a short-day trader or a long-swing trader, economic news always affects the market. Investing.com’s calendar shows upcoming and past news. The exact time the news arrived will be posted. For example, a trading strategy may be derived from data.
All traders are advised to check this economic calendar before trading. There may be very strong movements in the market after the news. In our experience, trading this news doesn’t make much sense. This is because in most cases movement is unpredictable.
In the photo above you can see part of the economic calendar on the website Investing.com. The strength of the news is marked by “the bull’s head”.In our experience, you shouldn’t act as three “bullheads” on the news. Volatility is too high and liquidity is too low. A risk-taking trader can start speculative trading right after launch.
Where can I find this economic calendar?– The website Investment.com shows this economic calendar. Besides most online brokers give you the service of an economic calendar.
Facts about the economic calendar:
- News has a strong impact on the market.
- Trading is risky due to its high volatility and low liquidity.
- Inform yourself before trading
- Various strategies can be derived from the news.
2. Demo account for beginners and advanced traders
A trading demo account is very important for beginners. Advanced traders testing trading platforms, strategies, and more.A virtual credit account that mimics real money transactions. The terms and conditions are the same. A demo account allows traders to trade risk-free.
Many beginners start too quickly with real money trading. We recommend that you practice with a demo account first until you feel profitable and very secure. You should also practice order execution and familiarize yourself with the trading platform to avoid serious mistakes. A demo account can be opened with any broker.
Facts from the trading demo account:
- A demo account is an account with a virtual balance.
- Real money trading is simulated as “play money”.
- Beginners should practice trading with it
- Advanced students can test new markets and try strategies.
- You can open a demo account for free
3. Choose an Affordable and Reputable Broker
This is perhaps the most cost-effective trading tips and tricks for traders. With over 9 years of experience, we have tested many brokers and found the best providers. Trading fees can be estimated year by year, so you should definitely find an affordable broker. Saving just $1 per order opened gives you a very large sum calculated for the year.
Also, the broker must be reliable and reputable. The plethora of possibilities makes it difficult for beginners to decide which broker is really good. Pay attention to the official rules and services offered to traders. You can find the top 3 providers in the table below.IQ Option offers the best full package. Change can be very rewarding for you.
Criteria for choosing a good broker:
- Regulations and Licensing
- Free demo account
- low transaction fees
- No hidden costs
- Quick launch
- Professional multilingual customer support
4. Keep learning and keep trading
Information and knowledge make you a successful dealer. It is important to start with the basics. In our experience, there are problems that many beginners with advanced knowledge want to start trading with. In general, the terms are not understood correctly and do not really understand what they are doing.
Trading should be built as a foundation from the ground up. You start with absolute basic knowledge. For example, many brokers offer it. Webinars, coaching, books, and more to learn to trade. This is a great way to refresh your knowledge. There are also other books on Amazon or Youtube videos for more advanced knowledge.
First, you should ask yourself the following questions:
- How is the price determined on the exchange?
- How does order execution work?
- How do I determine the correct position size for a trade?
- How much money do you want to risk?
- Any strong news that will affect my market soon?
- What trading methods do you follow?
- Where are my loss limits and trading goals?
Overall, financial markets are very complex and there is a myriad of different markets and financial instruments. The first tip is to find a particular subject area and become an expert in this area. Don’t focus on too many things at the same time. This can cause a lot of confusion at first. As a primer, we can recommend eBooks that fit your trading mindset.
5. Avoid Stress and Emotions
Many traders start trading in poor physical conditions. For example, you should not trade if you are sick or stressed at work. In our experience, sitting in front of a computer and starting a deal after a fight with a girlfriend makes little sense.
Your body needs to rest because you have to focus on trading. Distractions should also be avoided. Smartphones or news can distract traders while trading. The result is the wrong decision. Trading is about making money, so every trader wants to get the most out of it. That’s why you need to focus entirely on execution.
Also, many people are emotionally controlled. For example, emotions are related to money because you worked hard for it. To profit from stock market trading, you have to take risks. Don’t let losses delay you.
For many traders, it is difficult to switch off after a few losses. They trade later and make more mistakes through emotion. You have to learn to turn it off. Make sure you set a loss limit. Loss limits prevent the worst bad decisions and emotions.
Our rules for feeling good:
- Trade only in good condition
- avoid stress
- Set loss limits to prevent emotional behavior.
- Don’t trade with expectations
6. Create strategies and rules
There are millions of trading strategies that work on the stock exchange. The biggest mistake traders make is that these trading strategies are not executed consistently. Strategies must be implemented step by step to get the right results. The trader behaves almost like a machine and executes the rules.
A set of rules is very important for stock exchange trading. It explains the principles of trading strategy. Without a set of rules, traders fail miserably. In our experience, we can say that our performance is much better when we trade strategies according to fixed rules.
You can create your own rules. However, this requires experience and knowledge that can be acquired over a long period of time. Backtesting can be done on a demo account. Creating a strategy and set of rules takes a lot of time. However, it will be of great help in trading.
You need a fixed trading strategy.
- Testing various trading strategies
- Execute these strategies strictly according to the following rules:
- Develop your own rules for retail trading.
7. Reasonable risk and money management
As mentioned above, trading is risky and requires capital. The higher the risk, the higher the profit. Risks must be planned before each trade and are broken down into Stop Loss (more on this in the following trading tips).
A trade entails multiple losses in a row. Therefore, meaningful risk management should be used in order not to damage the trading account too strongly. For example, if you set 20% of your total capital per trade, your account will be almost 60% smaller after 3 losing trades. This is really pointless and will destroy your account quickly. There is also emotion because of using too high an amount.
Professional traders impose a 0.5 – 2% risk on their trading account per trade. This is a very good value to hedge against volatility. Do you want to stay calm and increase your capital or gamble in the long run?– This is your decision.
Trading tips and Tricks for managing your money:
- You should plan your risk before each trade.
- How much money do you want to bet?
- Professional traders only use 0.5 – 2% risk of total account per trade.
- Too high a risk leads to emotions and bad decisions.
8. Use of profit (take profit) and the loss limit (stop loss)
Use Take Profit and Stop Loss (pictured below) for your trades. Pre-trading preparation is essential and these automatic limits are part of it. Risk is removed from the market as it can optionally be added to stop-loss profits.
Take Profit and Stop Loss are automatic limits that automatically close positions at all prices. Then the transaction is closed. This happens in case of profit or loss. Stop Loss is the most important tool for traders to hedge their risk. Trading without a stop loss is never recommended as it can lead to high capital loss.
These two limits can be changed at any time after the position has been opened.In summary, Take Profit and Stop Loss are the most important means of securing profits and limiting losses.
9. Beware of stock exchange opening hours and volatility
Traders need to know their market for sure. This includes important business hours of the stock exchange. Although some markets can be traded electronically 24 hours a day, trading hours play an important role in trading.
Volatility and liquidity increase during trading hours. Also, the movement is less controlled by the algorithm. Traders should pay attention to this.
When does it make sense to start trading?
For example, only the official opening hours of exchange are suitable for same-day trading. You can feel the clear difference between day and night. Also, the volatility (movement) is much higher when the exchange opens. You need to be prepared for this.
For example, it doesn’t make sense to make quick trades on a Friday evening. The move is barely noticeable and many traders have already entered the weekend. You will get the best results during official trading hours.
Some markets do not even trade overnight.So the location cannot be opened or closed.
- IPOs generate high volume and volatility.
- It makes little sense to trade outside of business hours.
- Know your market and its features
10. Avoid Trading Signals and Trading Robots
In more than 9 years of stock exchange trading experience, I have not yet found a functional signaling service.100% of the time this is torn and the signal is not working.
I mainly ask beginners about signals or automated trading systems. Ask yourself the following questions: Does someone have to give you an informative signal, preferably for free?- It doesn’t work! These providers rip you off with high fees or want to make money when you lose money.
If your auto signal generator works, you can get rich in a few months and you don’t need to post or advertise it. Absolutely avoid such offers. Independent trading according to your own strategy leads to success. You may be willing to trade yourself with other traders, but everyone has their own estimate of the market. This can cause confusion.
- Avoid signal services
- Stay away from automatic trading programs
- Invest in your own knowledge
Conclusion on the 10 best trading tips and tricks for traders
On this page, we have shown you the top 10 trading tips and tricks. You should now be much more secure in your transactions. You will also learn how to better prepare yourself for the market with a little effort.
All 10 tips are part of a successful trade and no tip should be neglected. With 9 years of experience in the financial markets, we have made some mistakes. That’s why we created this page to make it easy for beginners to start trading.
The deal is difficult and risky. However, you can simplify your trading with a few tricks.
I wish you much success in trading.