Preparation for stock investments like a pro
Plan your trade and trade your plan. The first step in day “trading like a pro” is the preparation. This calls for, the quotex login financial instruments to trade and the strategies of best access point, trade management, risks control and money management. No serious day sellers will ever enter a trade without first checking the economic news. It is important to know the time and the day of all important economic news before considering to enter a trade. Only foolhardy traders discount economic news. You should check economic at Yahoo/finance, Google/finance and at MSN/money. You may then decide what to trade based on fundamentals or on technical analysis.
As a day sellers, you will respect the opening bell of London at 3 am eastern time, 8 am London time and the New york opening bell at 09. 30 am eastern time, 14. 30 London time. You will wait for the opening bell before placing any trades. After the preparation, there are eight steps for day “trading like a pro”.
First step after stock investments preparation: 5% rule
It is important to understand at early stage that, stock investments involves risks. No trading decision is risks free and will contain some aspects risks. Traders must protect their trading capital at all cost. One easy rule of money management and risks control is to use only five percent of your trading account. If you open five trades, the total amount of money allocated to those five trades should not exceed five percent of your trading account. When you reach the five cent, you do not place any more trades.
Second step up stock investments like a pro
Very often, traders will trade during the London session, the new York session and the Asiatische session. Really to miss a good night sleep, and to trade without halt. The main issue in this case is the over trading. For every trade, traders must pay their whilst they may not brokers in the form of commissions. It is important to control the number of trades that you are taking to avoid paying too much in commissions. To avoid taking useless trades for the pleasure of being in a trade, traders should always ask this question: is it worthy being in this trade? The expected reward must exceed at least twice the risk. The risk-reward relation should be considered before entering the trade.
Third step up stock investments like a pro
When you buy or sell when it is time to buy or sell at the right place, that is a win. On the other hand, when you sell or buy at the wrong time and at the wrong place, that is a loss. The ability to make excellent decisions quickly and to decipher the language of the price or the language of the momentum indicators will allow a day sellers to trade like a pro. Stock investments is a serious competition similar to American football or rugby. When one is buying another is selling. Therefore, you are required to use the right strategy for each trading challenge. Using trending strategies during trending period and range trading strategy during low volatility period.
Next step in stock investments like a pro
Using indicators in stock investments One of the reasons why traders fail in stock investments happens because they misuse or do not understand the indicators. Many indicators are just repeating the patterns of the price. In fact they are different version of the price. No indicators can ever replace the price, the number one indicator.