As a newbie in the world of financial spread betting, it is always advisable for a trader to have a formal foundation on finances, as much as possible. This is because this will make things much easier rather than entering the field with nothing at all in terms of understanding what this field. Aside from that, it is also a must for any trader to know the things that they need to do and avoid. It is also worthwhile to learn from the mistakes of other people so that the same mistake will never happen again.
In this view, there are at least three (3) extremely important things that traders need to do and avoid. These are about avoiding making counterproductive decisions, being objective, as well as determining a goal.
Avoiding Counterproductive Decisions
First and foremost, one of the most important things that a new trader in financial spread betting needs to avoid is to make counterproductive decisions This is because there are times when a newbie has the tendency to be overprotective on the trade. Well, it is quite understandable at the first instance because it is quite normal. Of course, this could be the newbie's first time ever to trade and make an investment position. Hence, he would be extra cautious in protecting it.
As a result of this, the trader closes a trade too soon with the mindset to guard it from risks and unfortunate events. Consequently, this is similar to cutting profits rather than maximizing it. Hence, this decision is counterproductive.
Objective rather than Subjective
Secondly, on the other side, a newbie should be able to make objective decisions rather than dwell with the subjective side of the story. This is because the subjective side always has a bias. It does not account for the scientific situation and facts. Instead, it only looks into the one side of the coin. However, the objective sees comprehensively and widely. This is what trading should be all about in the first place. Even a newbie should have the time to research and study things before making a decision. Aside from that, traders need to be scientific. There is no way that a trader will move without any sound basis. This is most especially applicable for a newbie in financial spread betting.
Setting a Goal
Thirdly, setting a goal is the start of having a direction. By having a direction, a newbie will have a guide on what the things that he must do and avoid in the midst of the trading day and beyond. This will also require a series of action that are all on the basis of attaining such goal. By having these, a newbie will never suffer from the temptation and irrational feelings that might occur in the process of betting.
In this view, there are at least three (3) extremely important things that traders need to do and avoid. These are about avoiding making counterproductive decisions, being objective, as well as determining a goal.
Avoiding Counterproductive Decisions
First and foremost, one of the most important things that a new trader in financial spread betting needs to avoid is to make counterproductive decisions This is because there are times when a newbie has the tendency to be overprotective on the trade. Well, it is quite understandable at the first instance because it is quite normal. Of course, this could be the newbie's first time ever to trade and make an investment position. Hence, he would be extra cautious in protecting it.
As a result of this, the trader closes a trade too soon with the mindset to guard it from risks and unfortunate events. Consequently, this is similar to cutting profits rather than maximizing it. Hence, this decision is counterproductive.
Objective rather than Subjective
Secondly, on the other side, a newbie should be able to make objective decisions rather than dwell with the subjective side of the story. This is because the subjective side always has a bias. It does not account for the scientific situation and facts. Instead, it only looks into the one side of the coin. However, the objective sees comprehensively and widely. This is what trading should be all about in the first place. Even a newbie should have the time to research and study things before making a decision. Aside from that, traders need to be scientific. There is no way that a trader will move without any sound basis. This is most especially applicable for a newbie in financial spread betting.
Setting a Goal
Thirdly, setting a goal is the start of having a direction. By having a direction, a newbie will have a guide on what the things that he must do and avoid in the midst of the trading day and beyond. This will also require a series of action that are all on the basis of attaining such goal. By having these, a newbie will never suffer from the temptation and irrational feelings that might occur in the process of betting.
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