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How You Could Make £2,850 Per Month

5 Rules for Successful Trading

InvestorEducation / Learn to Trade Nov 28, 2018 - 03:46 PM GMT

By: Boris_Dzhingarov

InvestorEducation

The current volatility of the financial markets and changes happening right now may make the whole trading landscape appear unpredictable, but there is a method to this chaos. The changes happening on the market are still measurable.

You just have to be sharper at identifying the best times to enter the market and the positions you should open. As a trader, you need to develop a series of habits and rules to be more successful when facing today’s market challenges.


Have a Plan

As mentioned before, the seemingly chaotic market still follows certain rules, which is why you must always trade with a plan. Think about when to enter the market, the goals you want to achieve, and how to deal with changes like sudden market turns like a pro.

Even slot games, which are purely chance-drive, need to be approached with a good bankroll management plan if you want to remain profitable at the end of the day. Having a plan when entering the financial markets is simply a must.

Stick with Continuous Learning

Market changes could only mean one thing - you have more to learn. Many great traders will tell you that you need to be a student of the market, meaning you have to continuously learn about the changes happening right now and how to best anticipate them in the future.

There is a lot to learn indeed, and even more learning instruments to use. You can now access historical data and pick up new patterns to add to your trading strategy. You can also learn from other traders and see how they approach the market in real time.

Use Technology

Speaking of more learning instruments, you cannot be a successful trader without leaning on technology, and there is a lot to lean on indeed. Rather than doing manual market analysis, for example, you can use alerts, smart indicators, and additional (online) sources of information to your advantage.

Technology also makes you more competitive, which is something that you want in a competitive market like today. You can start by using technical indicators and approaches that are common on the market, but at some point, you will have to develop your own approach using technology.

Protect Your Capital

Good traders always set a stop loss when trading financial instruments. This is a habit that lets you determine the amount of risk you are willing to bear. It is also a habit to add to your trading plan, especially with the market being this volatile.

Setting a stop loss and knowing your risks is also necessary to protect your capital. The last thing you want is to have your trading capital – which you have saved for so long – wiped out by a sudden market movement and the lack of a stop loss protecting it.

Know When to Walk Away

Believe me when I say that you will make bad trading decisions no matter how good you are. What separates the pros from common traders is their ability to walk away from bad trades and accept losses as part of the experience.

Understand that you will suffer some losses whilst incorporating the other tips we discussed in this article, and you will be a step closer to becoming a (more) successful trader. After all, a volatile market means a market filled with opportunities.

By Boris Dzhingarov

© 2018 Copyright Boris Dzhingarov - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2018 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


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