Hi traders,
Today’s blog is going to be one which aims and supports all those who are new to trading by giving them key tips on what to avoid when starting their trading journey.
Wealth maximization could effectively take place by doing forex trading with wisdom. But as it is fraught with risks, mistakes would make you lose your precious time, money, and hard efforts.
There are certain things that you need to clearly avoid. And avoidance of such mistakes is always part of fruitful risk management.
Let’s take note of few such mistakes that you need to clearly bear at the back of your mind, while you continue with fx trading.
Undoubtedly, the forex market is risky and unpredictable. But it does not mean that you should become casual in your approach to deal with the unpredictability. Rather your consistent approach to the market could give you the real exposure that could help you to steer clear of the problems in the course of trading. Beginners randomly pick up a deal and make a profit. But later on, they distance themselves away from trading as they lack courage and wisdom to deal with the unpredictability and uncertainty from the trade. For dealing with the volatility in the market, you need to be cautious and wise.
First of all, keep a trading plan in place. And every loss in course of trading needs to teach a lesson, which is helpful in further trading. You could note the mistakes in a journal and refer them as and when it is necessary.
By keeping notes about every day’s happenings, you could know about productive and unproductive areas in forex trading. You would learn about the factors, certainly influencing the results in trading.
In general, a STOP LOSS is an instruction that stops you from losing excess money in the market. As a vital part of trading, it is a must in day-to-day trading activities. Without its presence, your trading certainly remains prone to risk.
So the next idea is you need to set a clear idea that how much money you could really bear to lose in a particular day’s trading. And you need not step over the limit once you set it. Many young investors allow their emotions to rule their decisions in trading, which is a blunder. You need to stay emotionally balanced as you push through every day’s trading activities, while a STOP LOSS provides you cover against excess loss in business. Register for a free session for our forex trading course for beginners to know how exactly STOP LOSS can help you in cutting your losses!
As a beginner in trading, you need to take this fact for granted in your mind that selling is not only a number game but it is the very act of balancing your own thoughts and instincts. This becomes clear when it comes to averaging down. This mistake is noticeable in the trading of stocks and shares, but it really makes sense, when you understand it in precise terms that how it affects the beginners in trading.
Averaging down is the practice of adding more funds to a trade, where you have already invested at a lower rate at the time of first purchase. You resort to this practice because you think it is best to invest when it is cheap. But you wait till its value goes up. This is indeed a trap as you wait for a long time for getting a return and miss all the opportunities in the meantime.
The beginners take too much risk by diversifying too much and trading at several fronts at a time. By this, they become vulnerable to market risks as they fail to know about the profitable positions and trades that actually work.
On the other hand, unwillingness for taking risks and diversification also results in slow learning process and maturity in learning the intricacies of the trade. However, a balanced approach to trading with a bent of mind to learn the things results in fruitful and efficient trading.
Here at Platinum, we approach the market like professionals. Beginners too often try to make money quickly in the market thinking it will be a get rich quick scheme. All the traders from Platinum know this too be false and work with our clients progressively to help them reach their goals.
All the mentoring is completely 1-2-1 and provides the individuals with an experience of interacting with a professional trader every week. Remember trading is a marathon and no a sprint, risk less to make more. That is the Platinum Motto.
This is an example of how our Methodology works in action with a trading opportunity. Everything is clear and set out in front of you.
Perfect Fundamentals
As Donald Trump’s trade war escalates opportunities arrive for savvy traders. Today Platinum’s CEO is offering a unique and lucrative opportunity.
Trump was elected, in part on a promise to put America’s interests first and crack down on what he characterises as a world trade system rigged against the US. But until recently the president has acted like many of his predecessors – talking tough on the campaign trail but backtracking in the White House. Click here to view full fundamentals for this trade.
Perfect Technical Analysis
Technical Point of View on the USD/JPY
From the daily chart, we can see the head and shoulders pattern that previously formed. This pattern has formed due to the recent volatility on the pair due to trade wars and US dollar reaction to sanctions being imposed on the EU, Canada, and Mexico. We are now looking for a continued move from the neckline support. The bottom for our prediction should be the 1.1850 level, it is showing major demand with great probability of moving higher from there.
Perfect Technical Analysis
Perfect logic means both Perfect Fundamentals + Perfect Technical indicate matching sentiment.
Perfect risk Management – % risk of trade and stop loos = Perfect Risk management
Trade Entry: Long USD/JPY @ 108.50 with a 40 pip stop loss with a target of 110.80
Key Technical Levels on the USD/JPY
108.00 – Long term Buying Level
107.50 – Long term Buying Level
110.80 – Short term Selling Level
111.30 – Long term Selling Level
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If you are a new trader and would like to learn how to trade, then sign up today to our 2-day free Foundation to Forex Trading Course. We have just introduced this as in the last month we have had a lot of inquiries on learning how to trade the financial markets. We can get you on the successful path of becoming a Financial Trader.
Hopefully, you have enjoyed today’s article. Thanks for reading!
Have a fantastic day!
Nisha Patel
Live from the Platinum Trading Floor.
