Four tips for your trading
First: Know Your Object
Before we start anything, our objective must be clear.
When we start building our portfolio, we must know why we are undertaking this trade. To hedge, to speculate, or to arbitrage?
It is essential to know this because this is what will decide your trading actions. If you want to earn a stable income, you will follow a different strategy than if you’re going to hedge market risks.
Which derivatives you will trade depends on knowing exactly what your goal is.
Second: Entry and Exit Point
We are often confused about when to open a position, and more importantly, when to close it. We get clarity when we do our homework before opening a position. Open a position when the reward is in your favor, and exit when you suffer a loss or when your target is reached.
Third: Keep what works
When you are trading in the market, many things will work in your favor, and many things will work against it. Some strategies will generate returns, while some will make you lose. In other words, the right strategy should be pursued and refined, whereas the wrong strategy should be rectified or discarded.
Another important thing is to keep adjusting your trading strategies according to market situations.
Fourth: Continuous Learning
The more you trade in the market, the more you will learn. Every day there is something new to learn in the market, new tools, new strategies, and new derivatives types keep coming.
When you keep yourself updated, your portfolio also stays updated.
Disclaimer
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