Trading Tips #2 | Practice, planning and capital protection

in Project HOPE4 months ago

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Continuing with our "Trading Tips" section, we can finally bring you another delivery of the same. To read our first publication about trading tips, click HERE, do not miss any of these deliveries that are dedicated primarily to the entire community, so we encourage education in financial matters within the platform.

In our first delivery we talked about the importance of managing our emotions and the psychology involved in sustaining a trade in the market, this without making the common mistakes that make our fears (emotions) act against us. This time we will focus a little more on the practical and planned part, with the only purpose of continuing to be on the path to constancy and profitability in this profession.

In this opportunity we bring you 5 very important practical trading tips to keep in mind:

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Demo Practice

The first tip is to open a demo account and test your strategy and tactics, then open a few trades on one or two financial instruments of your choice and familiarize yourself with their dynamics and movements.

The benefit of this first tip is that you will have enough time to follow up on your new techniques and correct those that don't work well so that you can gradually grow and progress as a trader.

Protect your Capital

Protect your capital, the real key to success in trading lies in protecting your money, remember that you can always win a new strategy, but you need money to make money, so protect it.

The benefit of this second point, is that you would be defining a good strategy to manage risk and profitability in the long term.

Always Stop Loss

The third tip has to do with Stop Loss, defining a level for profit taking is very important but it will never be as critical as establishing a "Stop Loss" level, you would be risking your entire capital if you don't properly determine a zone to cut your losses or worse if you don't even place it.

The benefit of this third point is simple, if you control your risk by placing a Stop Loss, you can protect your capital and have even more opportunities to win.

Trading Plan

The fourth tip is your trading plan, remember that to make a successful trading requires time preparation and dedication, you have to develop a trading plan that is in sync with your personality, your investment strategy and your broker.

The benefit of this fourth point is that a good trading plan that provides discipline and concentration in your operation, is part of the fundamental basis of your future profitability.

Let your profits grow

Many novice traders are not able to handle the pressure of closing a positive trade with the fear of not losing the few pips they have managed to accumulate in those temporary pullbacks the market suffers, you have to stick to your plan and avoid these hasty exits that cut into your long term gains.

The benefit is that allowing your profits to grow is an effective method to improve your profit/loss ratio and at the same time increase your long term profitability.

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Finally, remember that if you are investing, the first and most valuable investment of all should be in yourself. Stay tuned for upcoming publications, we are already curating content and will be planning to publish such reports.

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