Taking the first steps in any career is difficult because you lack the confidence to stand by your decisions. That’s due to the fact that you don’t have much experience or expertise in the field. At least in an office, you can sit back and learn the ropes to help minimize losses.In trading, it’s essential to hit the ground running to help your budget grow.
The issue is, you’re a beginner who isn’t sure what strategy to implement to make it happen. Novice traders struggle with this all the time, yet they shouldn’t, since there are considerations you can factor in to make your job easier.
Copy Successful Traders
A straightforward way to eliminate the risk beginners come across is to opt for copy trades. The logic is simple – you follow the moves of people who are more experienced and skilled. As a result, you can avoid the problems that many people run into, allowing you to save money, limit losses and enhance your budget. Whether you copy deals of successful Thai traders or anyone you believe to be successful doesn’t matter as geography isn’t an obstacle. As long as they make money, you should consider using their trades as data. Novices love this strategy as it limits their exposure and increases the odds of high ROIs from the very beginning.
Set Aside Funds
Just because you plan on letting others show you the way, that doesn’t mean you can sit back and relax while your portfolio fills with cash. You still have important decisions to make, such as how much of your account per trade you are ready to risk. Investments require you to speculate to accumulate by their definition. However, putting down too much as a stake will leave you vulnerable, whereas putting down too little will leave money on the table. As a rule, 1% of your account per trade is ideal since it allows you to manage risk. Some go as high as 2%, yet that is down to personal preference.
Stay Away from Unnecessary Risk
Risk is everywhere, yet there are some risks that are very bold, even for experienced traders. For beginners they are downright gambles and often result in significant losses. Penny trades are perfect examples. Made famous by the movie The Wolf of Wall Street, these are low-priced options that investors attempt to milk for their benefit. However, they are usually illiquid because they are de-listed from major stock exchanges, meaning your chances of winning big are small. Although brand name stocks are less affordable, the hazards are few and far between, and the returns are steady.
Stick to the Plan
You already have a plan – copy trading. Therefore, you shouldn’t deviate from it too much, or else you could make errors that lead to losses. The best traders are decisive because they can move fast without overthinking trades. No, it’s not because they are reckless, but due to the fact that they know their strategy and trust it implicitly. As strange as it sounds, sticking to what works is harder than you imagine, particularly if you want to flex your muscles and prove that you’re a world-class investor.
A strategy is as simple as choosing someone to follow, setting your budget and evading obvious risks. Most importantly, it’s crucial that you stick with what you know.