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Becoming a skilled stock trader is a very tough task. You may learn the basics of the market within the first few weeks but when it comes to professional technique it might take years. Few things you will never be able to learn by reading books and articles. You will learn those things over time as you gain more experience in this investment business. But how do the new traders in Hong Kong learn to invest in stock? Is there any way a newbie can improve their stock trading skills? Well, read this article and you will find the answer.
Open a practice trading account
To improve your stock trading skills, you can always use the practice trading account. The use of a practice trading account will help you to make some quick decisions in the investment industry. Though it will be a complicated task once you start learning the details in the demo environment, you will not fear to lose trades. Since you are not risking any real money, you can test different kinds of trading techniques and find model that suits you. Create a trading system in the demo account. If you have a demo account, use it to fix the problems.
Learn to trade the price action signals
Those who trade with the top broker like Saxo always love to use the price action trading method. It a system by which the trades are executed by using the candlestick pattern. You many think analyzing the candlestick pattern is a very complicated task. For rookies, it will be tough since they will not have any idea how to memorize the pattern. Learn about the psychology of the candlestick and why it works. After knowing the details of each candlestick, you won’t have to take the trades by using the memorized candlestick patterns. This will make you a professional price action trader. Once you become good at analyzing the price action signals, you can trade the major stocks with a very tight stop.
Trade with the major news
The majority of traders will be thinking that we are telling them to trade the major news. Instead of trading the news, you must learn to trade “with” the news. This means you should not try to open a trade that goes against the major news. If the technical analysis suggests you buy Apple stock and the fundamental data suggests you short the stock, you should not take the trade. The technical and fundamental analysis must say the same thing about a particular stock. If not, you are making some sort of mistake in the analysis.
Revising the trading method
Rookies don’t want to admit their weakness. They think they have the best model to trade and they will never lose any trade. But soon they realize everything trading system has some sort of faults. Losing trades can’t be avoided in the trading business. So, admit the weakness and try to find the faults in the system. Fix the issues and revise your trading plan. After a few months, you might feel the market is not responding well to your strategy. You need to revise your trading plan again since the market has evolved to a certain extent. No one can make a consistent profit by using the same old trading model.
Spend time on quality vacation
Being a stock trader, you must not become addicted to this market. If you become addicted to stock trading soon you will become frustrated and break the rules. After a few months, you should spend some quality time on vacation. By doing so, you will refresh your mind and it will give you the ability to think more clearly. A fresh, calm mind can deal with the market stress in a much better way.