Insights into successful trading from Olymp Trade
, October 4, 2020
Trading is a skill like any other, which means there are tried and true methods of achieving success. Over the years investors have created tools, strategies, and philosophies to help improve their chances of being profitable.
Olymp Trade has compiled here a list of tips for traders looking to increase their earning and minimise losses.
Practice, Practice, Practice
Before taking your talents to the live trading section, spend some time in the demo account. Demo accounts are meant to help traders hone their skills in live markets without risking real money.
Traders often jump into trading before they are ready and lose money. Practice is an essential component to trading successfully.
Raise your skills without emptying your wallet. However, losses are inevitable and invaluable as teachers, yet they should be minimised.
On the Olymp Trade platform, traders use Demo dollars to make trades in real-time. Practice using the indicators, oscillators, and strategies. Over time learn to predict trends in the current market and be prepared to be profitable.
Manage your money
Money and risk management are not referring to preparing for retirement; though that is something to plan for. They are both parts of a trader’s overall strategy to help minimise and recover losses. Profitable trading is more than making the correct investments.
Money management is a guiding principle to help traders keep from losing too much. These rules help mitigate losing streaks, recover losses, and monitor trades for the long or short term.
Risk management helps traders protect their account balance even in the midst of losses. Stop setbacks from depleting your account balance.
These systems strive to remove much of the human error from trading. Following these plans will reduce the probability of losing money.
Trade What You Know
Even Warren Buffet knows to stay away from assets he does not understand. Having a “Diversified portfolio” is great, but trading assets you could not explain can be problematic.
The assets you trade should be both understandable and monitorable. Better to trade a few instruments successfully and profitably than too many and not break even. Most profitable traders are also cautious and look to minimise their risk with fewer assets.
Though a simple concept, many traders do not know to follow this principle. Invest in stocks and commodities of interest because it is less effort to follow the news that could impact them. Trade a limited number of assets for better focus, resulting in higher profits and fewer losses.
Trade with insights
Two types of analysis are predominant in trading - Technical Analysis & Fundamental Analysis. Both assist traders in capitalising on developing trends.
Technical Analysis looks closely at an asset’s price chart. It employs tools like indicators, oscillators, and drawing tools to analyze the current trend and its upcoming price action of an asset, not its actual value.
Fundamental Analysis combines company information including leadership, structure, products, and news to determine its worth. This type of analysis helps traders stay ahead of broader market trends Technical Analysis may miss.
Practice using both types of analysis and learn to use the tools, available on the Olymp Trade platform.
Olymp Trade also offers an exclusive feature -- Insights. It is a personalisable news feed on the side of the platform. Delivering the latest news likely to affect markets in the coming days, this tool has revolutionised fundamental analysis. Traders can see news likely to have an impact, which assets to watch, how they will be affected, and when.
Conclusion
Great traders never stop learning, practicing, and refining their skills. Olymp Trade has everything a trader needs to improve between its educational suite or countless hours of YouTube webinars. Employ Money and Risk management, while mastering indicators, oscillators, and exclusive strategies from the safety of a demo account.
The Olymp Trade Platform places everything you need to become a successful trader at your fingertips. Trade with a broker that wants to see you succeed.
* This is a sponsored article.
