Here are some key rules you need to know when trading stocks or currencies:
- Education is critical to becoming a good trader. There are a number of training courses and books you can read to educate and inform yourself about the markets,
- Have the right tools such as a stable internet connections, good computer.
- Have a proper trading plan and trade your plan. Do not deviate from your plan due to emotion and advice from others.
- Always trade using sound equity management. Decide in advance what that will look like in advance. Most platform will allow for those variables to be preset.
- DO NOT ever chase the markets due to emotions.
- Decide the type of trader or investor you will be. Are you a short or long term trader?
- ALWAYS BE PATIENT.
- ALWAYS trade with a protective stop loss.
- If the markets do not meet your trade plans you will not trade.
- Look for the right entry and exit point. BE PATIENT.
- For currencies, decide which trading sessions you will do. The markets run 24 hours from Monday to Friday.
- Decide which stock markets you will trade in. My advice is to stick with one market only. Currently my focus is only on the Jamaica Stock Exchange.
BEAR IN MIND THAT ONLY 10% OF FOREX TRADERS WILL SUCCEED. STOCKS HAVE A HIGHER % OF SUCCESS.