A Step By Step Guides on How To Avoid Losses In Trading 1.1

 A Step By Step Guides on How To Avoid Losses In Trading - Part 1.1

In this article, we shall be taking a section by section and please make sure you follow every section of the parts until the end, to have elaborate understandings of trading in order not to invest your hard earned money blindly - experience is the best teacher 

Take a due diligence to go through this article on how to avoid or minimize the cost of losses that may arise from trading on the internet as it matters, but not limited to forex trading only.

If you have been trading for a while now or you   have just got started or even planning to jump into the processes involve in trading forex, stocks,   options, indices, futures, as it is referred to online   trading in general;

 here is a few things you might put at the back of   your memory that may limit, minimize or avoid   you losses in the course of trading on the internet   also may be referred to as margin  trading in forex.

Although, even when there is no single unified formula, plan or strategy required for a trader not to do away with losses, there could be some sorts of better ideas a trader may put in place in order to achieve some profits or success over a specified period of time. And this scope may allow us highlight some main points:

1. Choose A Mentor

2. Select A Broker

3. Open A Demo Account

4. Create & Develop  A Plan

5. Open A Real Account

1. Choose A Mentor

Whether you agree or not, being a pro, expert, advanced, intermediate or a novice trader, there is always one or a few traders you look up to, for inspirations or educational purposes. Those days when I started trading forex, the first thing I would do was to look for a real time successful traders within my locality, glancing through google and wikipedia, to see profiles of world most successful traders of all times, so as to be motivated and energized that, a skillset I was about to perfect would not be a total waste of time, back then in 2009.

Hopefully, I came across several traders in my locality in the region of Lagos Nigeria who we happened to meet in real time. These traders made several references to other successful traders. There my journey as a forex trader began, from reading hardcopy journals to reading online journals. All these processes are a means of choosing mentors. Your mentor(s) is that person you look up to for direction towards your success either being a positive or negative influence.

Choosing a bad mentor could lead a trader to a wrong direction that, all focus would be diverted to doing the wrong things. As a trader, how you look at the market from foundational level (the market sentiment) is a lot of influence in decision making in trading. How quick is the reactions when a trader opens a position or his reactions when in a negative floating position, holding on to a positively floating position until it's all back in loss, cutting a winner out of fear of losses you encountered yesterday, are all functions of how you learnt trading from the foundational level, the mindsets you were breaded with as a trader, just like an inheritance from a mentor(s). In trading there are many things to learn and develop on your own, but that also could be quiet similar or familiar with that of your mentor(s).

In a similar way, choosing the right mentor or the best possible means of learning is a great way that could project you in achieving great success in trading. Having a great learning experience is the best way to make a breakthrough in your trading journey. Learning trading with bad habits would determine the type of trader you may become, remember in our previous discussion about having a market sentiment how it may influence your trading decision making (before, during or after position taking decision making). I will not take this type of trading again, oh! uh! had I known, I would have liquidated my position, oh! let me hop in the market now before it might be too late, meanwhile it is you that is not wrong nor the market, but the law of trading keeps proving you wrong or right, only for you to realize that consistency is one of the biggest factors in trading. A trader keeps changing from one strategy to another, month on month, year on year, only for him to realize that there is no consistency in profit/loss making.

Therefore, choosing a right mentor(s) or learning platforms is a great way to be on top of the game as one of the steps by steps guides on how to avoid losses in trading, but not limited to all of these above or further discussions.

However, having a great learning experience is one way influential in the type of trader we become, whether bad or good, profitable or not, honest or fraudulent type of traders, the next thing to think about is how to choose a good mentor, which depends on individual. If your aspiration is to learn how to dupe or scam other traders or be a genuine trader, it all begins with you. There is a saying that birds of the same feathers flock together( am I right or wrong?) oh uh! well, maybe or maybe not. Let us begin on how to select a right mentor or learning platforms.

How To Choose A Mentor

Now you know the importance of how a mentor may influence your trading decision or can influence the type of trader you may become, then let us try to analyze how to select a good mentor. Shall we? oh ok!

i. Sounds so promising

ii. Eager to request for fees

iii. Not keeping to his promises

iv. He is out of sight

In our next section, we shall be taking a look at the above points. Thank you!