If you’re new to trading, it can be overwhelming to know where to start. In this post, we’ll cover three essential trading tips that can help you improve your trading performance and avoid common pitfalls.
Stop trading weekly or close dated contracts
Trading contracts with shorter expiration periods, such as weekly or close dated contracts, can be highly volatile and lead to emotional decision-making. Instead, consider trading contracts with longer expiration periods of 45 to 60 days. This will give you more time to analyze price action, focus on your trade plan and thesis, and gain better control of your emotions.
Avoid social media platforms during the trading day
Social media can be a valuable source of information and inspiration, but it can also be a major source of distraction and noise during the trading day. Avoid checking social media platforms like Twitter, Instagram, and YouTube during trading hours. These platforms can cloud your judgment and lead to bad decision-making by creating panic, confirmation bias, and other factors.
Stop comparing yourself to other traders online
It’s easy to fall into the trap of comparing yourself to other traders online, especially when you see traders making huge profits in a short amount of time. However, it’s important to remember that these traders have likely been doing this for quite some time and have million-dollar accounts and portfolios. It’s not realistic to compare yourself to traders with vastly different account sizes and experience levels. Instead, focus on your own journey and path to success, and avoid trying to match their profits.
In conclusion, these three tips can help new traders avoid common pitfalls and improve their trading performance. By trading contracts with longer expiration periods, avoiding social media distractions, and focusing on your own journey, you’ll be on your way to a successful trading career.
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