With the onset of the CoronaVirus Pandemic, all the world’s markets were thrown temporarily into disarray and the trading markets were no different. Huge uncertainties that resulted from lockdowns and international travel bans made it really difficult to know what the best trading options were. Tried and tested methods of analyzing the markets seemed suddenly to be useless and traders all over the world were left scratching their heads. As the markets have begun to stabilize however things are slowly starting to return to normal. To help take advantage of this, here are our steps to becoming a successful trader in 2020.
1. Make Sure That You Have The Proper Knowledge
If you are one of the many new traders who starts out every year, a huge factor in the level of your success is how much work you put into it. This begins with making sure you have all the requisite knowledge and know-how to make informed trading decisions. There are many online guides that tell you all you need to know to get started or to take your trading on to the next level. The trading game is always changing so it is so important that you stay on your toes and never stop learning. The best traders are always looking to build on their knowledge and to pick up tips and hints wherever they can. The excitement of trading is that it is so fluid and so you must be fluid too.
2. Focus On Just One Or Two Pairs
This is a fundamental of successful trading that far too many traders overlook. A lot of traders try to focus on too many types of pairs all at once. They try to focus on gold, commodities, normal pairs, currency pairs but they don't understand that this is a far too scattergun approach. Each pair has its own story meaning that each pair will move differently and at different times. You need to understand that if you try to trade different types of pairs all at once, especially if you are new to trading, you are setting yourself up to fail. It will just be far too much to focus on and that is going to lead to impulsive decisions which can end up costing you a lot of money. Focus on just one or two pairs and follow them religiously so that you are perfectly set to make the right calls at the right times. There are various factors that go into deciding what are the right pairs for you but just make sure that you never stretch yourself too thin by taking on too many different pairs.
3. Trade On Higher Time Frames
This is another great tip for helping you to become a successful trader in 2020. Especially when you are new to trading, when you trade on a lower time frame, it is so difficult to make sense of all the noise of the minute to minute fluctuations in the markets. What at one moment looks like a trend can quickly dissipate into nothing. Trading on a higher time frame will give you a far better chance of success because you will be able to see the overall moves more clearly and make your decisions accordingly. As you gain experience as a trader, it can be beneficial to diversify and trade on a combination of time frames to maximize the potential of success, but it is important to gain experience and confidence first and trading on higher time frames allow you to do that.
4. Focus On Consistency
As in so many areas of life, when it comes to trading, the key to success is consistency. Put in the hard work, stay focused, and diligent with your analysis and this will pay off in your results. When you first start out as a trader, long before you start daydreaming about how much money you can make, you need to practice consistent methods every day to make sure that you're learning. Analyze, learn how to move, watch how the market moves, do the right things each and every time you trade and if you do those things consistently you will soon see the fruits of your labor.
Becoming a successful trader takes years of hard work and learning but there is no better time than now to get started. It is so important that you gain all the requisite knowledge before you start trading or you can easily lose a serious amount of money. Stay consistent and make sure that you don’t over diversify your portfolio when you first start and you will be all set to become a successful trader.