1. Learning and knowledge
• Understanding the market: You must understand how the financial markets work (stocks, currencies, commodities, …).
• Learn about financial instruments: Learn about technical and fundamental analysis to identify trends and make decisions.
2. Setting goals and a trading plan
• Set clear goals: Determine the target profit amount and acceptable risk.
• Develop a trading plan: This includes when to enter the trade and when to exit it.
3. Capital Management
• Determine the risk size: Do not risk more than 1-2% of your capital in a single trade.
• Diversify investments: Do not put all your capital in one instrument to reduce risk.
4. Technical and fundamental analysis
• Technical analysis: It relies on reading charts and price patterns to determine entry and exit points.
• Fundamental analysis: relies on economic news and financial reports to understand the true value of the asset.
5. Risk Management
• Use Stop Loss orders: to protect capital when the market moves against your expectations.
• Determine the risk-reward ratio: Aim for trades that generate higher rewards than risks (e.g., 1:3).
6. Patience and discipline
• Avoid emotional decisions: Do not trade out of fear or greed.
• Stick to the plan: Follow the trading plan you have set and do not deviate from it.
7. Continuous development
• Performance Review: Review your trades to learn from mistakes and successes.
• Learn from the market: Markets are constantly changing, so you need to be aware of developments.
8. Choose a reliable broker
• Make sure that the broker is licensed, reliable, and offers tools and technologies that support your trading.
9. Try it with a demo account
• Try your strategies on a demo account before moving on to real trading.
10. Timing
• Choose appropriate trading times based on market activity and liquidity.
By following these basics, you can improve your performance as a trader and increase your chances of making profits.#MarketDownturn