You started trading. You did it. You finally went ahead and put your money where your mouth is, and you set up a trade. But it went wrong. You lost the lot. And now you don’t know what to do next. Continue? Give it up as a bad job? Get angry about losing the money? No. What you need to do next is work out why it went wrong. And then fix it.
There are a few things that could have gone wrong in this, your first ever trade. The one that is most usual is that you started trading before you were ready. It can be very exciting when you first start to learn about trading. So exciting, in fact, that you can rush in, all guns blazing, before you’ve done enough research. It’s so important to make sure you are completely confident in what you are doing before you started trading. Once you begin, it can be too late to turn back.
Setting your chart correctly is essential, another thing you should have done before you started trading. If you have your charts in order, and you’ve researched everything thoroughly, then there is far less chance for anything to go wrong.
There is a slogan in the Australian army that goes something like, ‘train hard and fight easy’. Remember that phrase. It’s important for many things in life, including trading. When you started trading you would have ‘trained’ beforehand, and that would have made the trading itself much easier. Yes, it’s hard work for a little while, but without that training you will be rushing in blind, and you’ll be ‘attacked’ on all sides, eventually limping away licking your wounds.
A good way to begin your trading is to set up a demo account. You can make sure that you know all the ins and outs of the situation before you risk real money. And as for those traders who started trading without the demos, the ones who think that they aren’t really trading unless they’re risking money, ignore them. Let them get on with what they are doing – they’ll lose quickly in the end. You, however, with your charts in place and your demo accounts giving you all the practice you need, will have a much better chance of winning out. There are no guarantees, not even in trading, but there are ways to give yourself an edge.