TIP 1: Plan Your Trade & Trade Your Plan: Stick to your trading plan and DON'T ever deviate. It is too easy to do crazy things like add money to a losing trade or change your stop loss in the heat of the moment!
TIP 2: Never Overtrade: If you have a good trade, turn off and go and do something relaxing and fun. Bask in the glory of a nice profit! If you have a bad trade, do the same thing...walk away. Don't get into a new trade because you've just lost money! This is almost always gauranteed to LOSE YOU MORE! Believe I know, I've been there!
TIP 3: Only Trade After a News Item: All too often there is a spike after a high impact news item which could go either way and lose you a pot load of cash! Make sure you know what news item is due to come out, at what time and what level of impact it is likely to be, then plan your trade around that.
TIP 4: Learn From Your Mistakes: Keep a trade diary and see where you are being impulsive or inefficient. Learn your weaknesses and then avoid those behaviours at all costs. My worst weakness and probably the most common in the beginning is thinking you know what the markets going to do. Don't get cocky and be a know all...it could cost you!
TIP 5: Paper Trade First: If you are just getting into the game, paper trade for a while. This means that you only trade on paper (not using any cash) by keeping a record of trades using your pre determined trading plan. Most spreadbetting companies offer this option before you get stuck in, in the form of a demo trading account where you have a bank of virtual money which you can trade with It is an excellent way to get to know how you handle the trading arena and what style you enjoy and excel in most.
TIP 6: Only Use What You Can Afford To Lose: Remeber, this is a high risk business and you can lose your entire investment in a few seconds. You should NEVER use funds that you can't afford to lose. You should never BET more than 3% of your entire bank. This is the GOLDEN RULE and this hugely minimizes your risk. If you are still nervous after paper trasding, then deposit a small bank and use only 3% of this until you feel more confident and have a very good grasp on your trading style and ability.
TIP 7: Finally, Never Be In A Hurry To Make Money From Trading: This is a very important tip and often overlooked by new traders who think that this is a get rich quick scheme. You must be very clear that it isn't. It can be a very profitable and unpredictable business and the market can change as quick as you can blink.If you approach it as a business first and foremost and apply the same time and effort as you would to a new business venture then you have a much better chance of success.
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