Back in March we published a blog called the ‘Top 5 Rules for Successful Trading’ where we introduced some of the basic rules traders should employ to ensure they treat their trading activity in a professional and disciplined manner.
Over the coming weeks we will be expanding our information on trading and create a series of blogs with the sole focus of providing our users with solid, practical and usable information to compliment positive trading outcomes. As CEX.IO expands its services and offerings for traders we want to ensure that not only you have access to an excellent trading platform, but that you also have confidence the team working at CEX.IO understands trading and shares your passion and enjoyment of it.
Perhaps the first question would be ‘who are you to offer trading advice?’ Well, as the author of this blog and the ongoing trading series I have spent around 15 years investing, trading, learning and educating others in the best ways to trade as safely and successfully as possible. With experience in stocks (blue chips to penny), options, futures, Indexes, FX and now Bitcoin and GHS.
A quick Google search on ‘trading’ will bring up hundreds of sites offering ‘Golden Rules, Secrets to Trading Success or How to become a Millionaire trading 15 minutes a day’ etc. So there is no shortage of resource out there. The truth is though, there is no one piece of ‘Secret’ information that will guarantee your success, because, as with any venture, it is the application of multiple pieces of knowledge that when used together provides the best opportunities for positive outcomes. Having access to that knowledge is one thing, being able to use and apply it successfully is another!
Over the coming series we will focus on some of the key aspects of trading that can be used to give you an edge when trading. What you will see emerge is that a rules-based approach to your trading activities will give you the best chance of success. Rules enable you to remove emotions from your trading decision making, allowing you to operate trading in a business like way. Aspects we will cover will include:
Trading Psychology: You need to understand yourself; goals and objectives, reasons for trading. This helps you to define what type of trading style or approach you will do.
Your Trading Plan: You need to have a plan and importantly you need to follow your plan. The trading plan is your list of rules that enables you to trade without emotions driving your reasons. Trading can be exciting. But the problem is that you actually want it to be a bit boring because excitement will lead you to make emotive trading decisions.
Money Management: This is a key and involves aspects such as Stop Losses, Position Sizing, Entry and Exit Rules. Money management is all about control of risks and losses. If you can’t do this part well then you will find losses mount up very quickly.
Tracking Your Trades: Keeping notes on trading outcomes will discipline you and generate the ability to review success.
Technical Analysis / Fundamental Analysis: The use of charts and analysis techniques that help to plan and to execute your trades. The analysis of factors, such as market dynamics, news or financial details in your trading.
Trading Styles: We will look at different types of trading to take advantage of different market directions. Long / short, trend following, mean reversion, day trades, position trades etc.
We will also aim to put together our own trades that will incorporate the type of rules and approaches from this blog series. The goal being to share those trades in real time.
Finally, we encourage interaction and your input. Perhaps you would like a certain topic covered or you might have a view on one of the topics discussed. Whatever it may be, please, feel free to add your comments.