Embrace cumulative growth!!!
Regardless of the size of the money you deposit, start trading with small amounts: $10 to $100 may vary depending on the status of your safe. As you gain experience, you can increase the amount you deposit, but be prepared to lose. This will help you understand the behavior of market participants.
- Only trade with funds you can afford to lose; Losing them shouldn't affect your quality of life.
- Do not rush to quit your main job; Make trading a hobby in the beginning. It may turn into something more over time, but there are no guarantees.
- More transactions does not mean more profit. Sometimes a smaller number of trades can be more profitable than many daily trades. Without experience, it can be difficult to know when to stay out of the market.
- Investors spend 90% of their time analyzing instruments and conditions. Forget about rushing; Opportunities appear and disappear every day. Learn to wait. Start with paper trading to get used to the process.
- Note the profit or loss as well as the time spent. Regardless of your preferred time frames, start with longer ones such as monthly, weekly and daily charts for an overview.
- Markets are cyclical; They don't rise or fall forever. Returns often occur unexpectedly. Base your decisions on a well-thought-out plan, not on emotions.
- Develop your own strategy according to your data and temperament. Don't ask others where to buy or sell; they don't know. If a tool is 100 percent up from the bottom, it is unreasonable to enter without a break.
- If it has gained a few thousand percent in value, avoid entering without expecting a serious pullback. Even if indicators point in a certain direction, always consider the 1% chance of the opposite happening to avoid significant losses. Always manage risks.
- Withdraw some of your profits regularly. Understand why you're taking the time. Ideally, withdraw your entire initial investment over time to make the deposit psychologically easier to operate.
- There are no universal strategies. Your strategy should be proven but flexible according to market conditions. What works in a rising market may not work in a falling market and vice versa. Adapt quickly and skillfully manage risks to make money.