Hindsight is a fantastic thing for those of us who have been trading for a long time. We made a lot of mistakes or didn't do things the right way when we started, things we wish we had known or done differently. For those starting out now, you can take advantage of the fact that we've learned a lot of new things about our trading and the things we can do, which means you can start where we are now, rather than at the very beginning. of a trading trip. So here are ten things we wish we had known earlier in our trading career.
1. There is no best time to trade : When I first started trading, I was told that there were certain times of the day that were good for tradingand others that should be avoided, this is simply not the case. Yes, there are times when there is a lot more liquidity and movement in the markets, such as during the change of different markets (London and New York for example). That doesn't mean it's the only time you can trade, but that's what we thought, of course, we don't mean we weren't able to, just that wouldn't be as beneficial to our strategy now, however, we know we can trade pretty much anytime and it can be effective, barring special circumstances or random events.
2. The Majority of Traders Lose Money : If you've just started trading, you probably already knew this, but a few years ago forex brokers weren't required to state that the majority of traders were losing money like they do now. In fact, they were hiding it on purpose, and that's why the requirement arose. For this reason, we believe that everyone can make a lot of money, but we now understand that it is a difficult thing to do, and it makes us more careful and attentive to the transactions we make.
3. Some currencies are linked : A number of different currency pairs and assets are correlated with each other, think of oil and CAD for example, when oil prices change, the CAD currency also changes. Knowing which assets work with each other can give you a real advantage when it comes to knowing how markets will move and how certain things, like news, will affect other currencies, ones that aren't necessarily involved in the news.
4. You can profit from more losses than gains : Losses are part of trading, in fact, it is something we will all experience. What we didn't realize before is that it is possible to be profitable by winning only a fraction of all trades. Our current strategy means that we only need to win 25% of our trades, which is certainly achievable. If your risk management and risk/reward ratio are correct, you will be able to make profits with a limited number of profits.
5. You can lose with more winners than losers : The other side of the coin mentioned above is the fact that you can actually lose money, even if you win 80% of your trades, if you don't Don't use the right risk management techniques, so even if you have a number of winning trades, when you have a losing one, without the proper things in place, that losing one could take away all of your profits. This shows us how important it is to manage risk well, whatever strategy you use.
6. Great news can be bad news : News can be a bit scary, but we weren't told that when we started. Instead, we stuck to trading whenever we wanted, not caring what was going on around us. This is where we went wrong, we wish we had known the effects that news events can have on the markets, we have traded during these events and seen the markets surge massively up or down, this which has caused us both great gains, but also great losses, many more losses. So now we know not to trade during news events, which saved us a lot of
7. Don't quit your job : Not something we did, at least not at first, but quitting was a lot of people's goal, and we were told it was definitely possible. ; for this reason, a large number of people took the leap a little too soon. Unless you are really ready, with a lot of time and hard work behind you, you won't be ready, no matter how successful you are, you're not ready to quit your job unless you've been successful for at least least a year in a row and you earn more than your job, only then should you do it. We hadn't been told this before, and many found out the hard way.
8. It can be good not to trade : A quick tip, you don't really need to trade if the conditions aren't right, there's no need to trade. It may be best to sit down and be patient. Better opportunities will arise and if the markets do not match your entry criteria, then opening a position would be considered a bad trade, which we want to avoid as much as possible.
9. You don't need a lot of indicators: Indicators can be fantastic, they can show you a lot of information, but do you really need all this information? If you have too many indicators it can slow down your trading, each indicator you add is another piece of information you should check before making a trade, the more you have the longer it takes. Not to mention that it might just confuse you to see so much information on the screen. Instead, choose a few, which will allow you to get the information you need while streamlining your transactions and making them much faster. Oh, and make sure they're at least relevant to your strategy and not just random indicators because they look cool.Trading naked or with technical indicators? - Tips to simplify your trading strategy )
10. Forex is a long-term market : We entered trading like many others, with the idea that we could make a lot of money and do it very quickly, we now know that it is not If so and instead, Forex and trading are long term things where we can build for our future. Trying to make a lot of money quickly will only cause you to lose your deposited capital, so take your time and build your balance slowly rather than trying to make a lot of money.
These are 10 things we wish we had known when we started our trading career. You probably already know most of them, because the information is much more accessible and people have had the same experiences as us and shared them online. There will of course be learning opportunities and things you will develop that you wish you had known before, but at the end of the day, that's life and that will happen with everything we do.