Welcome to another issue of Traderwave Weekly, a trading newsletter where I curate the most useful trading articles on the internet to share with you.
Hope you will enjoy all these fabulous reads and apply those knowledge along your journey to become a proficient and profitable trader!
If you have been following my webinars and seminars, you will constantly hear me preaching the importance of setting stop loss.
For new traders just starting out to learn trading, my recommendation is to just fix a stop loss and stick to it come what may as this single step exercise helps a new trader be more disciplined.
However, once taking stop losses becomes second nature to you, it is time for you to learn how to utilize trailing stops to reduce your risk exposure and to maximise your potential returns.
In this article, the author shared about some important things to take note of when you are ready to learn how to move your stops.
So head in now and read it before you start formulating your trailing stop strategy.
Besides trading psychology and trading strategy, the third key pillar of trading is the emphasis on risk management / position sizing.
While trading strategy’s main purpose is to help you identify high probability trading ideas, it is extremely important as well to decide on a risk management plan, so that in the event you are wrong, you will not wipe out a big portion of your trading capital.
In this article, the author shared why it is so crucial for any trader to have a risk management plan, how to go about determining the ideal risk parameters and finally, how many units to trade to ensure you are not risking too much.
So head in and have a good read!
For a newbie trader with very limited capital base, my usual suggestion is to start off with demo trading.
This offers an inexperienced trader the opportunity to build up his trading workflow competency and saving up enough money first, before moving on to the major league.
However, staying too long in a demo trading mode has got its downside as well.
In this excellent article, the author shared 5 surprising reasons why he thinks it is actually bad for a trader to stay too long in demo trading.
Have you been trading in a demo account?
If you are, do have a read to learn how you could be doing injustice to your trading growth.
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- The True Nature About Trading The Financial Markets - August 4, 2020
- Are Fake Breakouts and Reversals Really Fake? - August 1, 2020
- Technical Analysis Is Used To Study Probability And Not Certainty - July 30, 2020