Sharing experiences and knowledge is very important in any field, but learning from professionals is particularly important for traders because it may help them to avoid unnecessary financial losses. Below you will find some stocks trading tips from experienced investors. Following these advices will help you to start investing in the stock market or currency trading. Tips are universal for all financial markets.
- Make a plan. Choose one or several trading instruments interesting for you and learn the strategies that already exist on the market. Define a trading style you find comfortable and try to put experiences and tips of successful traders into practice on a demo account. Do not switch to real investments until you create your own strategy, define a goal, and decide on the amount of money you’re ready to invest in financial instruments without serious consequences. Professional traders do not start trading until they realize their ultimate goal.
- Keep calm. When working on stock, currency, and other financial markets, it’s very important to stay cold-blooded. Keep a stiff upper lip and stick to your trading plan. If your strategy doesn’t work, revise it later but do not do anything “under the gun”.
- Remember that everyone makes mistakes. Not a single, even the most experienced, investor, is immune from wrong decisions and losses. So, you have to accept this as a fact of life. The core principle of trading is that the profit you get must be higher than the above-mentioned losses.
- Make your decisions. You can follow stock trading tips from more experienced traders if you want, but in the end, you are the only person making decisions that will affect your trading results. There are no 100% ready and effective decisions.
- Don’t be afraid of the market. Traders with brief trading experience are in fear of uncertainties, especially on the currency market. However, these risks are a major piece of any investor’s work.
- Choose your own trading timeframe. Some traders prefer intraday trading, while others are more interested in long-term periods. The choice of a timeframe depends on your trading strategy and the instruments you decided to invest in. At the start of trading, the timeframe, just like everything else, can be selected according to the tips of more experienced traders.
- Pick companies, not Stocks. This is one of the useful stock market tips. Constant monitoring of quotes may create the impression that Stocks exist on their own. However, below each ticker, there is a real company, activities and dynamics of which you should learn before buying its shares and follow its news in the future.
- Make rules in advance. Make the list of reasons that may stir you into buying or selling an asset. Check this list before performing each transaction as it may help you to avoid hasty decisions.
- Place Stop orders. The way prices move especially on the foreign exchange markets is hardly predictable, that’s why you should place Stop orders to decrease your potential losses.
- Increase your assets slowly. Stocks market bears no haste because earnings from investments may come months or even years later. Learn the companies you find interesting and slowly add new promising instruments to your portfolio.
- Take your time. Traders with brief trading experience often open several orders simultaneously and then realize that they are not able to keep an eye on all of them. Decide on the optimum number of trades you are able to properly manage and try not to exceed this limit.
- Learn something new. The key “weapon” of any trader is information. Get new stock market tips from different resources, learn more about financial markets and trading instruments, try different assets for investments.
- Follow the news. News is one of the key sources of stocks trading tips and it may have a significant influence on financial markets. When significant news and important statistics are published, the market volatility may be higher or lower and prices of trading instruments may change faster than usual. That’s why if you plan to trade on news, take into account instability in price movements and nuances of execution of different order types during such periods.
- Monitor the market. Monitor how the price of your chosen asset changes and follow the market situation. There is a good chance that some unexpected events may influence forecasts for the instrument you’re interested in, so you will have to revise your trading strategy.
Before start trading
- Make a real plan. Your first investments are highly unlikely to generate excessive profits. Build a sound and clear strategy and use it, especially in critical moments when emotions prevail.
- Stick to your strategy. Follow your trading plan, especially when you’re emotional. However, don’t be afraid to revise it if your hypothesis turned out to be wrong. Everyone makes mistakes.
- Don’t be hot-headed. This is one of the important stock trading tips for less-experienced traders. Don’t make any hasty decisions and try to avoid emotions.
- Study the market. Follow the news, study the market behaviour, and learn new assets. In addition to that, it might be useful to watch professional analysts and traders, who share their experience and get stocks and new currency trading tips from them.
- Benefit from opportunities offered by RoboMarkets. RoboMarkets clients have free access to analytics and educational materials. Moreover, you can choose a trading account and a platform more suitable for your goals. More detailed instructions on how to start trading at RoboMarkets and some advices can be found here.
Remember that a recipe for success on financial markets means an elaborated plan of actions and no wild decisions. A wise choice of a proper trading account type is very important as well. Our table of trading account types will help you to decide on the one better for you.