If you are a beginner trader who has not been able to make progress or achieve trading goals, we have interesting information for you. It turns out there are trading habits that can help novice traders to be able to achieve their trading goals to improve profitability. If you can consistently do these habits, you will get more profit in your trading without emotion.
Let’s look at some trading habits that help many traders achieve their trading goals:
Using Stop Loss
You cannot avoid loss in trading activities. Even professional traders will experience loss. Even though you can’t control market behavior, but you can certainly control how much you lose per trade.
Therefore, use Stop Loss to limit your possible losses. You can adjust your Stop Loss level yourself: loosened, tightened, or adjusted to your liking. Anyway, make sure that you always activate the Stop Loss feature on your trading platform.
Make Pre-Trading Preparations
Remember this old saying, people who want to win won’t compete without a game plan. In the case of trading, never start trading without a trading plan or strategy.
If you are still confused about how to make pre-trade preparations, you can start with simple steps. For example, making important economic events in the economic calendar. By knowing important economic events on the trading day, you can measure potential risks and predict market volatility when you enter and exit the stock market.
Another preparation you can do is determine the trading time frame. Daily time frames should be the first choice for knowing the psychology that is dominating the market.
Make a Trading Journal
Start making notes about what happened during your trading. Keeping a journal is an important task in any performance or goal-oriented business. Additionally, you can find out the cause of your win or loss and improve your trading strategies.
A trading journal can be a record or a reflection of how good and bad your career in trading is. If you regularly conduct evaluations, you can improve your trading performance. That way you will have better trading psychology.
Allocate Specific Time For Trading
Trading time on global markets actually lasts 24 hours for five days a week. With this condition, you should choose the trading time according to your daily routine.
However, there are many traders are part-time traders. If you are a part-time trader, it means that your trading time is certainly limited. Therefore, try to allocate special time for trading and focus on trading at the time that you specify.
You can utilize trading time effectively by avoiding distractions and focusing only on trading-related activities.
Finding Products That Are Right For You
Many beginner traders who have been trading for months but have not yet determined the strategy that suits them. These traders have not found the specialty.
According to Investopedia, you should try to find which currency pair is suitable for you to trade. In addition, you also need to find a time frame and indicators that match the currency. By focusing on this product first, you can assess your trading performance and can evaluate it so that trading performance can improve.
Read more: 3 Essentials Trading Tips for New Day Trader