What advice can you give me for trading?

We are on a journey towards successful trading and hopefully each lesson would be a cobblestone which will make up a whole path towards the bright future with proper trading. Today I would be sharing some tips about strategies and trading in general that will hopefully help not only beginners, but also people will experience as well, as there is just no perfection in trading, you can learn something new everyday, and getting 1% better needs to be out motto. Not fast and huge result, this is not casino - but slowly and disciplined, and regularly.

1. If you are a beginner, work with a demo account

Disclaimer: non-beginners can also work with a demo account for two reasons mainly: First, is when you are trying out a new broker and you want to test it out before depositing real funds, this can allow you to get a taste of what trading here looks like. Second, if when you are trying out a new strategy but it's still raw and you don't want to loose real funds on it, so you can open a demo and refine it and see the perspectives and if it works, then you can start integrating it into your trading system.

For a beginner, that would be a good thing, because it gives you an idea of what trading is. Of course you may know the basics and all, but trading itself on practise is something very different, and in my opinion, a wise thing would be to actually devote at least one month to trading on demo, and do it every day of the working week, and you will see how the price moves. Then you need to learn the types of execution, if it's intant or delayed orders, and how the stop-loss nad take-profit works, becase these are just absolute basics that are used by all the traders around the world.

The main idea here - is to actually submerge in the environment of practical trading and learn to take responsibiltiy for the losses and profit, treat it like his own funds.

2. Trade what you have in mind.

Some people get into trading because they want to trade stocks of major companies, the other want to trade currenices and some people may want to trade gold, silver, etc. What I mean is that if you want to trade some asset, trade it. This sounds satiric, but it's not, I am saying this because beginners read some articles about some crypto pairs or some other things being super profitable, but they don't know that it's written from their perspective. These assets have their own unique treats, as opening hours, volatiliy and else. Don't go for the advices of others who recommend some exotic stuff to trade if you have something in mind - just trade what you want.

If you don't know what you want to trade, the recommendation would be to trade something that has a lot of resources about itself, and super popular. That would be currency pairs as EUR/USD, GBP/USD (major forex) or some indices as SnP500. I'm no saying that these pairs give you more profit than the rest, because they don't, but their popularity has made learning them a bit easier than let's say, bonds.

3. Trading the trend

I know it's easier said than done, and yet it demands the understanding of the trend, the levels and trendlines and else, but the idea is not about the strategy, it's about your mindset. Trading against the trend has to be the biggest source of losses in trading, becasue it's in the human nature to earn a lot of profits and catch a reversal. They tell you the market moves in waves, and it is right indeed, but do not expect a reversal - when it happens, it happens. Do not counter-trade, this is the worst you can do in the beginning or in the middle of your journey, and in the end... well would understand then. You can learn to use some indicators, and they would appear hopefully in future lessons - but just make sure you understand the basic principles of a trend. The market can begin to go up and up, and then your mind may trick you into thinking - be the first to catch the reversal, you will best everyone and get the most profit and enter a countertrend trading. This is done without any confirmation and often leads to loss because the market doesn't move as you want.

4. Setting up SL and TP.

I have probably talked about this enough throughout my other answers to questions, but just to emphasize - this is important. Stop-Loss is your guarantee that you will not losse more money in a bad scenario the you have planned to, and while opening any trade, be sure to be able to loose it, only then you can appreciate the profit. Also, when setting up Take-profit, it's important to be realistic, and you cannot just put out a 400 pips TP to EUR/USD that rarely moves 100 a day, and 400 upwards may take like 3 months.. so be subtle, and I think the best pips goal for the day is no more than 30, and volume beats everything in the end.

5. Limit your trades

Yes, you may think that you need to open as much trades as you can while you are learning, but this would just turn your trading into gambling, and when overtrading begins, real trading leaves the room. Most people overtrade because it seems to them like they are missing out and they have to grab EVERY chance that they see. If they spot 2 potential moves in the market and one may be 60% probability and the other is 10%, they take both and end up at 0 because one plays out and the other doesn't. So limit the number of trades that you can take in a week, and then take them accordingly, and it doens't mean that you HAVE to make a certain number of trades, just take the chances that align with your trading strategy.

6. Education is key, keep pursuing it.

The most important thing for a beginner to do would be to keep educating himself, and once you have found a legit resource, then keep learning, and be disciplined in it. When you learn new things, always try to test them and refine them, back to the square one - going them on demo.

Another great method is to keep a trading journal - EVERY trade you take, take a screen of it and save it and put a little describtion. This would be important once you have enough data.

Nothing here is investment advice, either on the landing page or the Terms of Service page. Don't follow anything without thoroughly researching it.