Recommendations for new traders

22 jun

No matter the size of your deposit, begin trading with small amounts: $10, $100. As you gain experience, you can increase your deposit, but be ready to lose it. This will help you understand market participant behavior.

- Trade only with funds you can afford to lose; losing them shouldn't affect your quality of life.

- Don't rush to leave your main job; let trading be a hobby initially. It might turn into something more over time, but that's not guaranteed.

- More trades don't equal more profit. Sometimes fewer trades can be more profitable than many daily trades. Without experience, it can be challenging to know when to stay out of the market.

- Traders spend 90% of their time analyzing instruments and circumstances. Forget rushing; opportunities appear and disappear daily. Learn to wait. Begin with paper trading to get accustomed to the process.

- Note the time spent as well as profit or loss. Regardless of your preferred timeframes, start with longer ones like monthly, weekly, and daily charts for an overall view.

- Markets are cyclical; they don't rise or fall indefinitely. Reversals often happen unexpectedly. Base decisions on a well-thought-out plan, not emotions.

- Develop your own strategy based on your data and temperament. Don't ask others where to buy or sell; they don't know. If an instrument has risen several hundred percent from the bottom, entering without stops is irrational.

- If it has gained several thousand percent, avoid entering without waiting for a significant pullback. Even if indicators suggest a specific direction, always consider a 1% chance of the opposite happening to avoid significant losses. Always manage risks.

- Regularly withdraw a portion of your profits. Understand why you're investing your time. Ideally, withdraw all your initial investment over time to make operating the deposit easier psychologically.

- There are no universal strategies. Your strategy should be proven but flexible to market conditions. What works in a rising market may not work in a falling one, and vice versa. Adapt quickly and manage risks skillfully to make money.