To succeed in trading in Singapore, you must follow these tips to boost your trading profit.
Look at charts daily
The best way to improve your long term performance is by looking at the market daily. You can use apps or websites that have real-time data for this. Look at several days worth of information every morning before you start work, so you know what to expect when working in the markets later on.
Don’t be afraid of volatility
Remember that volatility gives you opportunities, rather than taking them away; don’t avoid busy trading periods because they are more volatile and result in more significant price fluctuations. It can be challenging if you miss out on a lot of sleep! However, increased activity generally results in more opportunities to make money.
Don’t chase deals
Unless you’ve done extensive research and know that a company’s prospects are good, please resist the urge to buy in when you see that another trader has made a lot of money from it; this can lead to over-trading and cause you to enter trades without proper preparation. Please wait for an opportunity that comes along when there isn’t too much hype around it, so you avoid paying more than necessary.
Stick with themes or trends
Rather than trying to time the market perfectly and pick entry and exit points, keep your focus broad by sticking with general market trends such as commodities, forex pairs or stock indices. This technique will help reduce risk and position size for greater returns.
Trade breakouts from major price regions
If you’re using a breakout strategy, then it’s worth waiting to see if the asset or market you’re trading breaks through significant levels of resistance or support, which acts as a springboard for continued momentum. It’s beneficial in volatile markets when asset prices bounce off key price zones. Use platforms with good charting capabilities to make sure your decision is informed.
Develop a routine and stick with it
Whether this means constantly checking the markets at a specific time before starting a shift, or spending an hour doing research each day before trading, develop habits that work well for you, so you don’t waste time deciding what to do every morning. It will also help you limit distractions during working hours.
Don’t include too many assets in your portfolio
It’s important not to spread yourself too thinly when trading; instead, focus on just a few high-quality assets, so you can know what you’re doing with them and develop an effective strategy for each one. You’ll avoid feeling overwhelmed or confused about where to put your money if it becomes spread around too much.
Find out how to use leverage correctly
Leverage is helpful because it increases the amount of capital available to trade with, but this must be managed well. Otherwise, it can result in losses that exceed deposits made by traders! Don’t risk more than 5% of equity per trade; set stop losses or try not to trade when you’re tired because these are all factors that increase the likelihood of making mistakes.
Develop a watch list
Please keep track of assets that are showing signs of being about to break out so you can see them before they surge in price; by staying ahead of the game, you’ll have the ability to enter new positions early on rather than joining everyone else after the trend has started so will benefit more financially by doing this!
Be aware of commissions and fees
It’s easy to get carried away in the excitement of trading and forget that your actions still cost money, so you can lose out if this is underestimated.
Develop a strategy for limiting losses
Every trader makes mistakes, but by developing risk reduction strategies in advance, you’ll limit the damage when things do go wrong. It will help cut down on stress and keep your trades profitable despite occasional errors, which are part and parcel of being a trader.
Now that you have all the tips of the trade, check out Saxo Bank and get started on a profitable trading journey!