I promise I’m not some weird guru who’s going to tell you to burn sage and dance around in the yard to increase profits. On a side note, if it works for you, please let me know where you buy your sage. But seriously, these four tips all new traders should follow work, and they’re proven scientifically to increase performance.
Do you know there are four tips all new traders should follow? That doesn’t mean instant success however.
But these four tips go a long way in giving you some guidelines to follow. If you’re like me, than you like having a plan to follow. It makes things go much smoother.
As a result, I hope these four tips all new traders should follow come as a help to you; whether you’re brand new or been around awhile.
Trading Tip #1: Visualize Your Trade in Advance
You’ve nailed your strategy; you might have two to three that hit home runs for you. Now stop and read carefully: You should not have any more than three strategies in your toolbox.
Yes, three, that’s it. Because, like most things in life, it’s best to keep things simple. My personal three home run strategies are shorting stocks that go parabolic, shorting the day after the first red day and dip buying the morning panic sell-off. On my desktop, I have about 50 screenshots of each set up saved in separate folders. And why do I have this? So I can open each folder, study them and memorize the setups.
I burn them into my memory, and when the set up comes in real-time, my fingers hit those hotkeys like a sharp knife slicing through butter. In other words, I’ve visualized my trades in advance even before they happen.
When opportunity presents itself, I’m ready to pounce like the cougar so patiently stalking their prey. Our stock trading service is here to help you in any way as you learn four tips all new traders should follow.
Trading Tip #2: Accept That the Market Is Random
Understanding that you can’t predict the market, even if you have a crystal ball, is probably one of the critical tenants of becoming a profitable trader; especially when learning four tips all new traders should follow.
No matter how much analysis and backtesting you do, the market will surprise you. At times the market would follow my analysis, which would make me feel like I have a sense of control. Other times, not so much. I would see the market blowing through my key resistance level as if it didn’t exist.
Now that I’ve been in the game of stock market trading for a few years, I realize that despite my analysis, it doesn’t exist anywhere else but in my mind. So, where does this leave you?
I think you need to listen to the whispers; what are the indicators telling you? If they are telling a different story, you need to ride the wave and not try to predict the direction of the tides.
If you’re new, make sure to read our post on how to make money in the stock market as you’re learning four trips all new traders should follow.
Trading Tip #3: Your Homework Matters
I can just feel the excitement, armed with a few strategies you’re ready to make some serious bank. But, are you prepared to make a trade? All too often, we rush into things without thinking them through.
I don’t want you to be one of them, as trading can either be your best friend or worst enemy. Before you pull the trigger, pause, and honestly ask yourself: Are you prepared? Do you know why you’re buying or shorting a stock in the first place?
Do you really know what you’re doing, or are you just throwing darts in the dark? Or, did you subscribe to a quality stock training program with a team of mentors and supports?
You wouldn’t spend a dime on a vacation somewhere before at least doing an internet search on reviews. Why wouldn’t you do the same for stocks?
Do your own research and treat everyone else’s with healthy skepticism: If it sounds too good to be true — it usually is. A little bit of homework goes a long way.
Trading Tip #4: Your Morning Routine Matters
Preparation comes in many forms, like adequate sleep and having a morning routine. Did you get eight hours of sleep last night? Are you rested? How is your health?
Trust me when I tell you, you won’t be making good trades running on five hours of sleep and energy drinks. My ask of you is this, define what a perfect trading day looks like for you. Here’s mine as an example:
6:00 am – Wake Up
6:05 am – Coffee
6:15 am – 8:15 am – Writing, blogging or reading
8:15 am – 8:45 am – Shower/get dressed/eat
8:45 am – 9:15 am – Review markets/FINVIZ/trading alerts/my homework from the night before
9:30 am – Market open, and I sit on my hands and wait until it settles, and the trends are in place – typically, this is by ten.
As you can see, my trading day is complete by noon, and I’m free to do pretty much anything else I want. The other two non-negotiable items I complete afternoon are exercise and reading at least ten pages of self-improvement, non-fiction book.
Oh, one other so-called rule, no social media before noon and I try my best not to check my text messages until then either.
I am the sharpest early morning, and I fade afternoon. Some times I will slip into the live trading room or look at charts, but I’m tired and not focused.
Quite frankly, this is a dangerous situation for a trader to be in. Because of this, I encourage you to identify your peak times and stick with them. Hence why this is apart of four tips every new trader should follow.
What I do know for sure is there is no one way to ensure success in the trading world. But there are many surefire ways to fail. However, these are four tips all new traders should follow.
Whether it due to lack of preparation, practice, education, routine, one doesn’t have to look too far to figure out the causes. But, there’s an important principle here: you can succeed if you do the preparation, practice and education necessary.
Make sure to check out our list of penny stocks if you’re looking for trading ideas.
With Bullish Bears, we will help you learn the ins and outs of day trading, how to scan for pre-market gappers, and how to draw important support and resistance levels.
Better yet, find out which indicators work and don’t work for day trading and how to scan for low float stocks. Why don’t you join us today and discover why we’re one of the best trading communities out there.
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