As a beginner at cfd trading South Africa on forex trading, the following are some of the things that you need to know:
Relax and try enjoying what you are doing. If you find that you are not enjoying as you trade, or if you find that you are being stressed, then you should give up on forex trading and look for another way of making money. Forex trading is not for everyone. It can end up wreaking havoc on your health and other aspects of your lives. Being a trader, you will need to accept that you will have certain negative periods, but in case the financial and emotional stress becomes too much to bear, then you need to pause or stop it completely and look for another path.
No to overtrading
Don’t overtrade. After having money management which is poor, overtrading is known to be the causes of a lot of losses as compared to any other factor. Many traders means that the risk will be higher and don’t translate necessary to more profit.
While it might be quite normal for scalpers to make a lot of trades daily, all traders have to guard against excessive trading and only trade on the setups that conform to your strategy. It will assume that you are having a strategy as a trader. When as a trader you don’t have a strategy, then you are likened to a ship that doesn’t have rudders and the odds will be against you.
Take forex to be your business
Treat trading the way you would treat a business. Majority of traders love to gamble. It is only a few professional traders who are known to also play poker. They have certain similarities but unless you do it for kicks only, you should treat it as an opportunity to make money. Forex traders require to be able to define what they would wish to get out of the trading. How much do they require to make and the amount of time they can be able to dedicate to make it happen.
Don’t be greedy and arrogant
You have to ensure that you ego is in check. Neither having to cry over a beer when you lose or brag in the bar when you win is not the right thing to do An ego which is healthy is necessary to become a winner, but consider it to be a double edged sword which can cut quite deep. The best is to avoid bragging or gloating when you win or t sulk whenever you lose. Both events have to be viewed as being a part of the game. You have to be humble or else you will be humbled.
Know the time to stop
It is good to cut the losses. The oldest rule when it comes to trading is to cut your loses fast and allow your profit to run. At the same time, it is the hardest thing that you can do. The natural tendency is allowing the losses to run and grabbing profits when they appear.
It takes experience and time to be able to override the impulse. In most cases, the traders that are prominent tend to have a ratio which is positive of win loss, but those with declining balances are doing that. The odds favor the ones that readily cut the losses fast, even before the trade hits a loss stop.