Advice from IQ Option traders who have traded just one month
If you want to become a successful trader, getting your hands dirty and trading is necessary. For many new traders, they learn the hard way – losing lots of money. Some give up completely. Others decide to give it a try after doing further practice on the IQ Option practice account.
I usually give my guides and tips from experience gained in the trenches. This time round, I decided to give “beginner” traders the opportunity to take center stage. Each trader simply had to answer one question: What is the most important lesson you learned after trading on IQ Option for one month? So I compiled the answers that were quite similar across all respondents. Here they are. Most important lesson learned after trading 1 month
- 0.1 “Simply follow the price”
- 0.2 “Always know when you’ll exit your trade before placing an order”
- 0.3 “Impatience and greed are two emotions that need to be in check”
- 0.4 “Trade one market at a time”
- 0.5 “Trade longer time frames”
- 0.6 “Build your own trading strategy”
- 0.7 Conclusion
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“Simply follow the price”
Many traders try to predict how the market will go. Sometimes, they’re lucky. However, in most cases they’re outright wrong. The market simply goes where it wants. The only way to know where is through the price.
In many of my guides, you’ll find that I usually recommend trade entry based on where the price is headed. If you see a green candle, it’s clearly going up so you must place a buy trade. If you try to go against the market you’ll only lose your money.
“Always know when you’ll exit your trade before placing an order”
Trade entry is as easy as clicking on the buy or sell button. But once this is done you stand to lose your investment. Before trade entry you must always determine what your exit point is.
For example, when trading options it might be a minute or more. Then determine whether the markets and indicators give you a signal that increases the probability that your trade will be a winner by the time it expires.
“Impatience and greed are two emotions that need to be in check”
Getting in the market and laughing your way to the bank hours later is a fantasy many new traders have. But it doesn’t work that way. You’ll find that most of your time is spent analyzing the markets for the right signals to appear. Patiently analyze the markets for the right signals
Greed is probably the one emotion responsible for trading accounts being wiped out in a short amount of time. In an effort to make money faster, new traders (and experienced traders too) invest too much on a single trade.
I always recommend not trading more than 5% of your account balance on a single trade. If you have a string of losses, stop trading. Take time to analyze your strategy and the markets before trading again.
“Trade one market at a time”
Simply put, opening too many trades simultaneously increases your risk exposure. If most of these lose, you’ll lose a significant amount within a short amount of time.
“Trade longer time frames”
I usually recommend 5 minute or more time frames. This allows you to identify a trend and avoid price fluctuations that are occurring every millisecond. Longer time frames are also easier to analyze.
“Build your own trading strategy”
All successful traders have their own unique trading strategy. Creating your own strategy gives you the discipline of following it through and refining it when it seems not to work.
Trading for a month seems like a short amount of time to get some experience. However, if you’re serious about trading every single trade counts as a learning experience. What is the most important lesson you learned after trading on IQ Option for one month? I’d love to hear this in the comments section below.
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