A Concise Trading Guide for New Traders

[SamReomo]

A simple and concise guide for new traders help those traders to achieve their trading goals.

1. Start trading with a "Trading plan"

A trading plan is a very important step for a trader. A trading plan is a proper way to plan your trading goals by making proper steps that could allow you to earn profits from your trading activates. It's necessary to make a proper trading plan by writing your investment goals and desired returns of the investment as well as a timeline to achieve those goals. Without a proper and working trading plan one can never earn enough profits from trading and the chance of loss is also higher for such person.

2. Educate yourself about trading

A good trader always tries to learn about trading from various sources that include books, online courses, and other available stuff present on the internet. the traders who have no knowledge about trading are prone to face huge losses in trading and that's why it's better to learn about trading and its concepts as a first step before doing any actual trades.

3. Start small

It's necessary to get familiar with trading process, and that can be done with very little amount of money in beginning. The traders who begin their trading journey with a little amount of money will always have higher advantage over the ones who begin with huge sums of money because the prior ones won't get impacted by lost trades as much as the later ones.

4. Invest what you can afford to lose

Many traders start trading by investing a lot of money into it, and they don't know that in trading one can also face losses sometimes. When those traders lose that money then they think that why they have invested that much into trading. A good trader only invest the amount of money into trading that he/she can afford to lose, and investing is more than that is unnecessary.

5. Diversify your portfolio:

Someone who diversify his/her portfolio can reduce the risk of loss to huge extents. A good trader often diversify his portfolio by investing in various class of assets because a single asset in a single market can sometimes be a cause for huge losses and that's why a good trader should diversify his/her portfolio.

6. Use stop-loss orders

When you are investing in a market then it's important to use risk management tools such as stop-loss to limit your potential losses. A stop-loss order is an order placed with a broker to sell a security when it reaches a predetermined price, designed to prevent significant losses by automatically closing out your position.


7. Practice

To become a successful trader one need to do trading practice on daily basis because a trader always has to learn and master new things and those require practicing. A trader who give proper time to practicing his/her trading skills often gets higher advantages during real time trading. A trader doesn't always need to have real money to begin practicing trading because such trader can begin with a demo account, and he/she can improve his/her trading skills by practicing with virtual money.

[1714657485]

1714657485

[1714657485]

1714657485

[1714657485]

1714657485

[1714657485]

1714657485

[1714657485]

1714657485

[tbct_mt2]

You mixed your guide with trading and investment but I guess you wanted to write this guide for trading only.

Awesome Crypto Trading is a free source to learn about Basic Trading.

You wrote about Start small with trading that is good and I want to add one point. By starting small, you will have other small capital pieces to restart your trading after your first, second, third trading piece ends with failure and you lose most of that capital piece.

I don't know how many capital pieces is needed to change a newbie trader from failed one to successful one? Ten times or twenty times or more, I don't know, it's personal issue but I am sure it is not easy to be a successful trader.

[EarnOnVictor]

The reason most traders fail is that they lack a trading plan, and the few that have the plan might not have the correct one that will be foolproof and withstand the test of time. Trading is risky, tricky and confusing, even those that have the trading plan still might be confused and discouraged over time. But if the trader's plan is good, it will always withstand the test of time.

However, the priority of the plan of any trader should be a very good trading strategy and money/risk management. And if the trader could tame his emotion, success will linger.

[tbct_mt2]

The reason most traders fail is that they lack a trading plan, and the few that have the plan might not have the correct one

It is not all about why they failed.

They can have a trading plan or don't have it at all. They can have a good trading plan or a bad one. However, biggest reasons that cause to their failed trading are

First of all, they don't understand the Psychology of market cycles
Next, they failed to control themselves and let their emotion (greed, fear, uncertain) affects them too much.

If they don't understand a first one and can not master to control a second one, no trading plan can help them to succeed in either trading or investment.

[palle11]

The reason most traders fail is that they lack a trading plan, and the few that have the plan might not have the correct one

It is not all about why they failed.

They can have a trading plan or don't have it at all. They can have a good trading plan or a bad one. However, biggest reasons that cause to their failed trading are

First of all, they don't understand the Psychology of market cycles
Next, they failed to control themselves and let their emotion (greed, fear, uncertain) affects them too much.

If they don't understand a first one and can not master to control a second one, no trading plan can help them to succeed in either trading or investment.

In addition to this said, I think when you are trading you are likely to fail with bad money management. So apart from good trading plan, if good money management is not part of it, it is good as no plan. Another important point is our money that is involved which becomes a source of concern for us and that increases the instability of our emotions because we are likely going to be making decisions based on the equity we have which is different from demo account trading that you can allow a losing trade to run until it returns back to profit. In real trading, if you allow your losing trade to run then you may not find any equity to continue another trade

[Ndabagi01]

Your first point, beginning trading with a "trading plan," is the most important step in trading successfully. Without a plan, your trading journey may end in disappointment, with you exiting the market as soon as you began trading and accumulating more loss than profit.

If the first step is not taken into account, every other step you take in trading will fail. Without a trading plan, it's as if you're not constructing a solid foundation in trading; it will undoubtedly crumble within a short period of time.

Investing what you can afford to lose is critical for any trader because it is the only way to stay in the market when the market is volatile. If you can overcome this, the risk of disappointment and heartbreak will be greatly reduced, and your trading experience will be improved.

[omgitsmehehe]

Your first point, beginning trading with a "trading plan," is the most important step in trading successfully. Without a plan, your trading journey may end in disappointment, with you exiting the market as soon as you began trading and accumulating more loss than profit.

If the first step is not taken into account, every other step you take in trading will fail. Without a trading plan, it's as if you're not constructing a solid foundation in trading; it will undoubtedly crumble within a short period of time.

Investing what you can afford to lose is critical for any trader because it is the only way to stay in the market when the market is volatile. If you can overcome this, the risk of disappointment and heartbreak will be greatly reduced, and your trading experience will be improved.

Trading requires discipline and dedication because for one to be an expert in trading, he urged to know every basis of trading and one is a good trading plan. It's a roadmap to follow inother to stabilize the chart. A very solid foundation for traders and profits is the ultimate priority. Know the rate of losses you can take in and don't be move or become greedy to close a trade when the market is moving in your direction. I used trading view to analyze charts for good entries, I bear in mind not to expect too much from the market because it's volatility can scattered plans anytime.

[Mame89]

The reason most traders fail is that they lack a trading plan, and the few that have the plan might not have the correct one that will be foolproof and withstand the test of time. Trading is risky, tricky and confusing, even those that have the trading plan still might be confused and discouraged over time. But if the trader's plan is good, it will always withstand the test of time.

However, the priority of the plan of any trader should be a very good trading strategy and money/risk management. And if the trader could tame his emotion, success will linger.

Many of the beginners fail when trading because they can't manage their emotions well. Trading can be a very emotional activity, especially during losses. Traders who are unable to manage their emotions well, often make wrong and detrimental decisions in trading. Because managing emotions is very important especially when suddenly the market is being corrected.

Besides that, beginner mistakes usually rely too much on technical indicators. Indeed, technical indicators can help in market analysis, but if you rely too much on technical indicators alone, traders can lose their ability to better read price movements and market conditions.

[ScamViruS]

The reason most traders fail is that they lack a trading plan, and the few that have the plan might not have the correct one that will be foolproof and withstand the test of time. Trading is risky, tricky and confusing, even those that have the trading plan still might be confused and discouraged over time. But if the trader's plan is good, it will always withstand the test of time.

However, the priority of the plan of any trader should be a very good trading strategy and money/risk management. And if the trader could tame his emotion, success will linger.

Many of the beginners fail when trading because they can't manage their emotions well. Trading can be a very emotional activity, especially during losses. Traders who are unable to manage their emotions well, often make wrong and detrimental decisions in trading. Because managing emotions is very important especially when suddenly the market is being corrected.

Besides that, beginner mistakes usually rely too much on technical indicators. Indeed, technical indicators can help in market analysis, but if you rely too much on technical indicators alone, traders can lose their ability to better read price movements and market conditions.

Emotions are one of the biggest barriers to success in trading. Not only beginners can't control emotions, many times it is seen that many experienced traders lose millions of dollars while trading. Whether trading short-term or long-term, there are always risks involved in trading and managing emotions is very important. So I think this point of emotion control is very important to get the desired result in trading. Because I myself still fail to control my emotions while trading.

[taufik123]

Emotions are one of the biggest barriers to success in trading. Not only beginners can't control emotions, many times it is seen that many experienced traders lose millions of dollars while trading. Whether trading short-term or long-term, there are always risks involved in trading and managing emotions is very important. So I think this point of emotion control is very important to get the desired result in trading. Because I myself still fail to control my emotions while trading.

Unstable emotions or psychological states certainly have a cause, whether it is because the trading strategy is not as expected, or suddenly the market trend decreases due to some scattered FUD. There are many factors that make psychology unstable and overflow emotions so the trading plan that has been made does not match what is expected.

and having more than one trading strategy is quite useful when the first trading strategy fails.

The first point discussed by the OP about the trading plan includes doing good and correct trade management. Without any management then trading can not run perfectly. Must do financial management, and risk management and build good portfolio management.

Like the tips given by Crypto COBAIN about Portfolio Management.
You can learn it and adjust it to the type of market capitalization Large, medium, or small.