As Tony Robbins once said, ‘Success leaves clues. This is not any different in the field of CFD trading. If increasing profits is something you are interested in, follow these tips that the great traders have made. With this, you will avoid the pitfalls they fell into if you take it seriously.
Leverage Control
Leverage can either amplify a profit or magnify a loss. The temptation will come lurking when you are on a winning streak. What comes up must always come down. It would be prudent to start small then slowly raise your leverage. Be sure that the leverage is not 3 times more than your account size, especially at the start. One embarrassing circumstance you would never want to happen to you is when you win big only to lose everything a few days later restarting from square 1.
Hold on to a Journal
Humans do not learn from experience alone, rather during the reflection of an experience. When you put your experiences in a journal, you are able to objectively gauge your progress and make adjustments accordingly. On the other hand, if you only think of it in the mind, the mind will distort reality to make the mistakes less painful than they actually are. Hindsight is 20/20. Here are the factors you should be taking note of in your journal:
a. The time you entered and exited a trade
b. The instrument that was used
c. Reasons for the trade, technical, news-based, among many others,
d. Results of trade whether it was a victory or defeat
e. A performance review during the trade
f. Lessons learned from the trade
This may seem like a chore to do, but the effects are astounding when you are able to learn from your mistakes when elucidated on a page of paper.
Demo Accounts
Capitalize on this one to the fullest capacity. This is your opportunity to make mistakes in the field of CFD trading without much emotional investment. You may try your planned strategies on this account first before doing it on your main account. The practice accounts are being offered by brokers and simulated money is included here. You may also employ this opportunity to familiarise yourself with the broker’s platform and learn all the ins and outs to give you that advantage over your competition.
Education
There is no growth without education. It doesn’t end when you graduate from college. That is only the starting point as the best traders, athletes, or anyone who endeavors to be the best at anything never stop learning. Keeping up-to-date with the latest happenings in the market whilst perfecting and practicing the CFD trading stratagem may prove beneficial. You may use a variety of resources like blogs, courses, articles, forums, videos, books, ebooks, podcasts, and online guides.
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