As traders, we can face multiple challenges: uncertainty, risk management, unexpected market moves, and much more. One of the biggest risks is to blow up our trading account.
This article will discuss activities, trading patterns, and views to prevent you from blowing up your trading account. Our goal is to help you spot bad habits you could have without noticing them.
Trading on Emotions and Beliefs
You should always know why you are trading in the market. Your trading should have a set of entry signals or rules. Never trade based on emotions, intuition, or beliefs. Sometimes it can be a challenge to leave emotions and feelings aside, but it is very important to remind yourself when trading.
Below you can find some useful articles that give hints on Emotions, Sentiments, and Believes when trading.
- Tracking Market Sentiment, by Emiliano Gama, a team member at Tradeview Markets.
- Trading Emotional Intelligence by David Pedraza, former Latin America Regional Manager.
- How Stocks React: Emotion vs. Fundamentals by Michael Venezia, Head of Trading at Tradeview Markets.
- Tips number 3, 6 , 8, and 9 on 16 Stock Trading Tips You Need Before Starting by Tradeview Editorial.
- Tips 6 and 8 from Top Forex Trading Tips by Jin Yau.
- Trading Psychology by Maria Isaza, Business Developer at Tradeview Markets.
Stop Loss, PLEASE
Professional traders always use a stop loss for every trade. Remember, one trade in the wrong direction is all we need to blow an account. You can find out everything you need to know about Stop-Loss in the following articles:
- Where to set your Stop-Loss by Oliver Garcia, Market Analyst on Tradeview Markets.
- How to use Stop Loss and Take Profit (A Simple Tradeview Guide) by Tradeview Editorial.
Do Not set Performance Goals
Do not set unrealistic goals with your account. Stop expecting Rolex, AP, and supercars with 1,000 dollars accounts. Instead, always think about how much you are willing to lose. Risk management is the key. The risk per trade is the only factor in trading that you can control 100% – Use it in your favor-. Feel free to look at the following articles to learn more about Risk management.
- Lower your risk by diversifying your trading by Raimondo Perfetto, VP of European Sales at Tradeview Markets.
- Is it Possible to Control Risks in Trading? by Maria Isaza, Business Developer at Tradeview.
- Forex Risk Management by Rijo Varghese, former Account Manager at Tradeview.
Be Smart and Keep a Journal
If you don’t take the time during the day to journal every single entry in the market, you are fated to fail.
Think of trading as a business. Now, please tell me if you know a successful business that doesn’t keep a close look at its daily activity. Only by journaling will you be able to know yourself and get to know your strategy expectancy, and therefore, you will trust the process.
- Dear Diary: Why you should keep a journal of your trading activities by Ryan Boltman, former Business Development Manager South Africa at Tradeview.
Trading Plan and Strategy
Your trading plan and strategy are your roadmap to success. I know many traders who don’t have either. Basically, they will give you the when, what and how to trade.
Remember, plan to trade and trade your plan. Stick to it, then trade and repeat.
Here are some articles that can help you set some trading strategies:
- Best Online Forex Trading Strategies by Tradeview Editorial.
Avoid other Traders’ bias
Always trust your analysis. You are here to trade “solo” and avoid getting clouded by other traders’ ideas or forecasts. Own your mistakes, and learn from them. If you want extra tips to improve your trading analysis take a look at the following articles!
- Two Types of Market Analysis by Demar Ruiz, Senior Analyst at Tradeview.
- Technical Analysis vs. Fundamental Analysis by Rosario Bue, Trader Analyst at Tradeview Markets.
- Fundamental Currency Analysis by Guilherme D’Orey, former FX Derivatives Sales Trader at Tradeview Markets
Learn your Fundamentals
Many traders think that they need to read the candle, and that’s all. The facts are that macroeconomics plays an essential role in the market, and understanding headlines and global economic data is paramount to becoming a profitable trader.
Learn how they affect and move the market. You can thank me later.
Be aware of the latest developments moving the markets with Surf´s up!
Backtesting
Last but not least, backtesting your trading strategy will not give you not only confidence but will allow you to know the strategy expectancy. Follow your plan, backtest, and journal.
You can see it as the hours of training for a professional player, musician, or DJ, only to name a few. Without hours of training and practice, they will never become professionals in their field.
Backtesting is where pro-traders train and practice.
If you want to test your trading strategies Open a Demo Account with Tradeview Markets and trade without risk. You can also open a Live Account and start trading!
“Discipline and practice are the prices you need to pay for consistency and success.”
Author: Oliver Garcia
Market Analyst
e-mail: ogarcia@tvmarkets.com
LinkedIn: https://www.linkedin.com/in/garciaojc/?originalSubdomain=hk
