5 things every online trader should avoid

The main objective of an online trader is to earn profit. He/she sets values, and objectives, hoping to see their rating improve to sell them more expensive in future. As a beginner do not act like a casino player. Financial market is driven only by pure luck. Always remember that people don’t always win. Where there are winners, there are losers.

To learn more about online trading, you need to be guided by someone who has experience and gives you basics as a beginner.

5 tips for not being fooled by the tough law of the markets

  • Big immediate gain: this expectation is likely to encourage him to commit large sums, with significant risk, and to be tempted by a leverage beyond his ability to repay in case of an unfortunate choice. Between the lotto and the forex or the binary option, there is the same gap as between dream and reality. You are not going to become one of the greatest traders on earth in a few days.
  • Chase the market: the faster the evolution, the higher the risks of a sudden reversal of the trend. A good trader is a reasonable person who earns small winnings, and occasionally accepts small losses, the golden rule being to calculate risk and never invest beyond an amount that cannot be made. Obviously, all this is not learned overnight, and it is important to find your mentor to get into the business. You can find some bloggers who offer spot market analysis, but the best way to learn how to become an online trader is to use a broker who gives you the basics of the business.
  • Self-esteem: to believe one is capable of learning the inner workings of markets alone, or of finding the martingale that magically opens the doors of fortune quickly leads to disillusionment. We must start by choosing a serious site, open a demo account that allows you to familiarise safely with this activity, and wait to feel armed before embarking for good.
  • Stubbornness in front of a losing position: as a player who seeks to “remake”, the one who maintains his position too long in the hope of seeing the trend reverse itself is likely to lose even more. The market does not obey the trader. We must accept not to win every time, and especially limit its losses by placing a position as a stop-loss that will serve as a safeguard. Money management, the basis for becoming and trading online.
  • Be guided by your intuition rather than by reason: before taking a position, it is important to calculate the risk or return ratio, and absolutely to elaborate a trading plan. Then to keep a detailed log of all the past experiences, good or bad, which will be used later to correct the inevitable errors by putting back in the foreground are the quantified realities, which are sometimes masked by the emotions engendered by expectations.

Know that this happens to everyone losing positions in forex or binary options, even the most experienced. Success is not about avoiding loss, but about minimizing damage while maximizing profits. Also know that even the most successful traders in the world do not win all the time. So it’s normal if you start generating some losses, it’s all just a matter of patience.

Scroll to Top