For those who are busy and are patient with the charts, swing trading may be your kind of pace. However, for us who like a fast paced market, we like to be in and out of the market, with our money at the end of the day. Today we will discuss tips and tricks to minimize your losses and maximize your trading time.
Tip 1). Trade with a regulated broker.
The trading conditions you subject yourself to will have a significant effect on your results. Brokers are not your friend. They make their money off the losses we make as traders, so more often than not.
If you do not keep a close eye on your broker they can swindle you out of your cash. Some brokers offer terrible trading conditions such as high variable spreads or high commissions, all for the sake of making it more difficult for you to make a profit in the markets.
So trade with a regulated broker that has governmental organizations that keep a close eye on it. I recommend you look for a regulated broker through WikiFx. This App is connected to all the broker regulatory boards in the world so they can help you find the best rated brokers with the lowest spreads. No matter where you are from, they will show you which brokers are known scammers and which are the best for you “FOR FREE”, so trust them and use WikiFx to find a great broker today.
Tip 2). Find a Trading Session that suits your volume and schedule needs.
Volume refers to the amount that the charts will move up and down. In volatile/high volume markets the price will move a lot of pips in either direction. In a low volatile/volume day, they will move a few pips. During the day there is not always going to be volume available. The reason for this is because at some point of the day, there are fewer people in the markets so the big banks do not move the price so drastically cause they cannot generate liquidity.
Different sessions mark different points at which the biggest economies in the world open up their markets. When one says it's the New York session, they mean that in America their markets are open (9 am New York till 5 pm). Because the American dollar is the most traded currency, and America is the most powerful economy, there will be a lot of volume in the market during that session.
There are three sessions you should be aware of . 1) New York session , 2) the London session, and 3) the Hong Kong session. New York usually brings the most volume to the market and Hong Kong brings the least. You have to look at what point of the day these sessions are according to your time zone and choose which one best suits your trading targets.
Tip 3). Trade according to your Trading plan (have a daily target)
For most people, the reason why they are seeing losses is because they want to make much more profit than what they are end to. By this I mean that they do not learn to take the profits they make off the market. In fact they make money, are not satisfied with it, trade more than they should with bigger risk, and then lose it all on a couple of bad trades. Look at your own trading progress, I am sure there are many times you make money in the markets and regret placing the last few trades because they ate into those profits.
When you trade with a target in mind you are able to stop yourself and leave the charts when you have made the money that you wanted to make. It is a proven fact, if you spend too much time on the charts, you will increase the chances that you will lose money in the market. Do the right thing and limit the amount of time you expose yourself to the markets. When you have reached a profit target you have set, simply move your stop loss and do not place any more trades. Just protect the profits of the current one you have. It will save you in the long run, and it will help you see consistent profits.
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