The world of trading is often alien to many people who feel they lack the confidence to trade successfully. However, though it may be a more specialist topic than most areas of the business world, trading can be a great experience.
Here are some light-hearted tips to help you make the most of trading, while building your confidence as you progress:
- Use your own judgment, rather than that of somebody else’s – unless that somebody else is an expert!
If you have discovered that your analysis skills are top notch when trading, work on your own judgment when making trading decisions. Elsewise, stick to an expert in the field who knows what they’re talking about. Never be swayed by those who claim to know what they’re doing but show very little evidence of succeeding.
- Stick to the number one trading rule – if in doubt, stay out!
If you have a strong gut feeling that the order you’re about to place is not the one for you, by all means, stop. What is most beneficial here for future reference is creating a trading criteria list and referring to it as often as you need for added confidence. What do you need to happen before you consider placing a final order?
- Analyze your mistakes on an ongoing basis.
Unfortunately, especially in the very beginning, you will make a couple of mistakes in your trading career. This is only to be expected. However, by analyzing what you did wrong in every instance, you’ll be guaranteed never to make that same mistake twice!
- Finally, resist the temptation to jump the gun!
It goes without saying that a trading plan encourages you to be as technical as you possibly can. Resist the urge to make hasty decisions and aim to act rationally throughout the trading process.