By Rob Colville on February 8, 2018 in
When you are a beginner in trading it can be difficult to work out how to start trading right. There are so many different systems, so many ‘experts’ offering their essential advice, so many different methods that work for some people but not others… no wonder it can feel overwhelming. It can leave first time traders feeling like an emotional wreck, with nowhere to turn and no one to ask questions of, because everyone has their own way of doing things. However, we aren’t like that. We can show you how to start trading right so that although you are working out your own way of doing things, we are pointing you in the right direction.
If you want to start trading right, stay away from day trading. When you try day trading you’ll be sitting at your computer for hours at a time, putting money here, there, and everywhere. It’s much like sitting at a slot machine hoping that the next coin is going to be the one that pays out. There’s no way to get a grip on the day markets because they are too short a timeframe for anything to make any sense. You’re really just guessing, and when you start guessing in trading you’re sure to make some big mistakes. Making mistakes is, of course, all part of trading, but at least when you’ve spent time working out how to minimise your losses you won’t lose quite so much…
There are robots that will trade for you, but that’s not how to start trading right. That will simply lead to you being bored because you have little to no input, and when that happens you’ll start looking at more interesting ways to trade – and the day trading temptation will creep back in. So leave them alone. Other things to avoid are expert advisors (EAs) and black-box trading systems. All of these things promise automation in your trading, and all of these things are wrong in some respect. Trading can’t really be automated to start with, at least not for a long time. It might be possible over a week or so if the market is particularly strong, but after that errors will occur. Potentially very nasty errors.
The only way to start trading right (and continue trading right) is to do it yourself for your own goals and with your own set of criteria allowing you to be utterly flexible if need be, but rigid where it matters within your own charts.
Trading methods can be found in every corner of the internet, in every book about trading, on every other trader’s lips, but there are so many of them that it would be impossible to try them all. That’s when, to start trading right, you’ll need to narrow the shortlist down to the ones you can try. Doing anything else is just confusing and not worth attempting – you’ll only lose money and patience in the process. Not only is it important to really research your trading method, it’s just as important to research your trading mentors. A trading mentor can be an extremely useful thing indeed. You wouldn’t rush headlong into any other kind of ‘hobby’ or career without some advice from someone who knows what they’re doing, yet so many people do in trading. To start trading right you need to find someone to help you.