In a market with millions of traders, it can be hard to get ahead of the game. However, when you’re share trading, there are little hints and tips you can pick up that will help you stay ahead of the game. Here are just four of our top tips.
In the 21st century, technology is your greatest asset. This is especially true when it comes to brokers and executing trades in the forex market.
Thanks to advances in broadband and processing speeds, it now takes longer to blink than it does to execute a trade, so ensure that your broker can match this speed.
However, your broker shouldn’t just be about execution speeds, and you should also look at the usability of the platform they provide and the other services, such as education that they offer.
As a result, you should always test demo accounts before choosing your broker. This way, you can try before you buy and ensure your broker is working for you.
Finding the Right Time
In addition, you need to find the right time to trade. If you can’t stand having open positions overnight, then consider whether day trading is right for you. This way, you should get a better night’s sleep.
The markets also move incredibly quickly and, with stocks and shares, you’re likely to see peaks and troughs around opening and closing times of international exchanges. Due to this, prices can be volatile at these times, so they’re best avoided to get the best deal.
Generally speaking, the more analysis you can do, the better. Admittedly, some people conduct more analysis than others depending on their trading profile. But everyone conducts analysis to some degree. The trick to staying ahead of others is to know exactly what you’re looking for.
Analysis is based on one specific principal: you can’t predict stock movements with a crystal ball. Analysis is based on the idea that existing and historical patterns in charts will repeat. If you’ve seen a pattern before, and it re-emerges, the chances are that it will go the same way again, so you can place your bet.
This means that, by analysing chart movements, you can locate repeating patterns and spot their direction before anyone else does. There are two types of analysis: fundamental and technical analysis.
Make sure you find a style of analysis that suits you. You’ll put a lot of faith in the data the analysis gives you, so make sure you believe in the results you’re getting. By acting decisively, you could get to the trade before anyone else and capitalise on the profits.
Social Media Influence
The influence of social media is one of the great trading improvements of the 21st century. Nowadays, many traders use social media site like Twitter to engage with influencers and create trading communities.
This way, traders can not only learn from the very best in the business, but they can also help each other through the use of hashtags and created communities. This way, a small pocket of traders, helping each other, can get ahead of everyone else in the market by pooling their resources.
By following these simple tips, you stand the best chance of getting ahead of others in the market. Stay true to your principals and find a way that suits you.