As newbies there are lots of things we need to know and work along with. As a newbie, it is expected that one must realize that trading comes with significant risk which can lead to loss of income or finance. Therefore in order not to loss money, it is important to know the risk in trading and how to avoid being prey to losing funds.
We can be on a safe side if we observe and follow these tips when trading:
- As a newbie, it is needed for one to have sufficient information, not just sufficient information but accurate information because insufficient or inaccurate information may land us to loss of finance. Having accurate information is very important so as not to loss money.
- Another important thing to know is the volatility of the market because not being able to predict price fluctuation may lead to unexpected loss of income. It is vital for a beginner to know this.
- Knowing when to buy and also when to sell Is also important because the aim of trading is to make profit, so it is advisable to know when to buy and also when to sell so as to make profit.
- Being greedy is not good when it comes to trade because greed can lead to over trading i.e excessive buying and selling of assets which can lead to loss of income but sometimes you may gain due to luck
- As newbies, we should avoid using borrowed capital in trading thou it is vice versa, we can either gain or loss. So extreme caution is needed.
- Making decisions out of emotion can cause great loss in trading. For one to gain profit in trade, he must make wise decisions without fear or greed.
It is very important to understand and know how to manage the risk involved in trading, so with proper risk management, well trading plans and proper education we can trade and make good profits.
Am open to learn, if there is any point am missing please your opinion is needed.
All the point you listed down here are quite valid no doubt, but you failed clarify some of them like never trade with a borrowed capital, most newbies don't actually knows how terrible it is to trade with a borrowed money, because it puts you under an unnecessary pressure, and trading requires patience, but if your capital is a borrowed money, you wouldn't be that patience enough to wait for the right set-up, just because you want to meet up, and you don't want to default on your loan repayment, and that will cost you some significant loss, if you can't be patient when trading.
In Believe that knowledge is very much important, so the thing that I feel like is the best as a newbie is to stay away from trading completely, until you are knowledgeable enough to know how to navigate your way in the market and come out profitable, if not, stay off trading, because the losses will be too much for you to handle.
