10 Great Tricks to Become a Smart Trader
1. It's all about the goals
What is your ultimate financial goal? What will you consider as a major success? What is your principal value? Once you've answered these questions you'll have a better idea on how to achieve it.
2. Be sharp
Having goals is nice enough, but in order to successfully execute them you have to be very specific in terms of how much money exactly are you planning to spend/earn. Once you'll have all the data, it would be much easier for you to be a successful trader.
3. What are you, a Bull or a Bear?
A bull is an optimistic trader, one that believes the market will rise while the Bear is exactly the opposite. This doesn't necessarily say something about your personality if you're a bullish or a bearish, but you shouldn't disregard your instincts as they're worth a lot of money.
4. Stay patient and persevere
Don't jump on every trading opportunity that comes along, wait for the right one that will match your plan perfectly and will serve your interests.
5. Don't get scared easily
Sometimes even after you plan out your strategy and stick to it, the market may move against you. The smartest thing to do in that case is to not overreact because the market is due to change again at any time.
6. Learn, Learn Learn
Don't jump on the bandwagon unless you have a proper education regarding the stock market. Learning beforehand can save you a lot of money in preventing expensive beginner mistakes.
7. Choose the right broker
There are many brokers out there but you have to make sure to choose one you trust and will provide you with a suitable trading platform for your trading style.
8. Plan ahead
Use the weekends to learn what are the new trends, patterns and their effect your trade.
9. Stick to one currency pair
At the beginning of your trading extravaganza, try to stick with one currency pair until you feel more comfortable and able to handle more pairs.
10. Keep a trading diary
In order for you to learn from mistakes and successes, keep a trading diary of your activities. That way you'll be able to distinguish what worked and what didn't and thus improve your strategy and trading plan.