admin dezembro 12, 2018

Trading can be described as a smaller cousin of the investment. Both trading and investing heavily in different ways to make money from the financial markets.

While investors try to make profits over the long term by buying and holding investment portfolio that they believe will do well, the business aims to make profits relatively quickly using their skills to take advantage of the volatility of prices of financial instruments they buy and sell.

These tools can include stocks, foreign currencies (forex), options and many others. When appropriate, also their sites to increase exposure, and thus potential returns.

Read also: what is leveraged trading and how does it work in Singapore?

Because trading is generally considered more dangerous, requires more skill returns Successful Traders also tend to be higher than it is for investors.

However, successful trader is far from easy. Not only a person needs to be familiar with the instrument(s) that are trading, and be familiar with markets that are in they also need to have the right attitude towards trading.

For a better understanding of what it takes to be a successful trader, we talked to three well-known merchants in Singapore who have succeeded in their field of specialization.

Part 1: stock trading – Colin Seow

Source: Colin Seow

Collin Seow is the founder of / TradersGPS. It is legal to qualified portfolio manager (CPM) holding a certified financial technician (CFTe) qualification, and is a member of Mensa Singapore.

The charismatic coach courses provide people with trading and investment strategies that help them navigate in complex financial markets.

Qn: how long have you been trading stocks? What your trading strategies.

CS: I’ve been trading stocks for over 21 years, but to be honest, in the first few years, it was more like a buy and “hope” to get better.

My strategy has definitely evolved over the years. In the early years was a process of discovery. I was mainly using fundamental analysis to select and buy stocks that I thought had dropped to less than their real value. The next stage of the learning journey is a short term trade using technical analysis (TA) and finally put the rule-based trading system (algo) on the basis of charge buy and sell. The time frame in which I hold stock can range from weeks to months.

Qn: what are some common mistakes that you usually see trade newcomers?

CS: the 2 mistakes most new traders.

1. Lack of confidence in its strategy

Losses are an integral part of trading. However losses also shake people’s confidence in their strategies. This is the main reason why new traders constantly jump from one strategy to another. Every time a meet a few losses on the strategy, they will switch to another. To become a profitable trader, you must become a master of strategy, psychology and risk. To become masters, we need to put in the time and effort, to gain experience and knowledge in our strategy.

2. Do not pay attention to money management

Money management is very important in trading. A lot of traders focus on making money but not losing money properly. This one simple step of learning how to manage your losses can be realized from the following loss to breakeven or even slightly profitable next.

Qn: what are the areas that are the focus of new traders should pay attention to instead?

CS: instead of focusing only on making money on the trade focus on routine operation, and then improve the strategy along the way according to their personality. I find that the processes that help us do our job better.

Qn: what are some myths that people usually hold when it comes to stock trading?

CS: “trading is easy to learn.”

New traders are often lured by the success stories that we hear in the market, of course, every success story there are dozens of heartbreak stories that do not allow. They also tend to underestimate the difficulty of trading because it looks easy risk. Sitting on the desk, watching the screens, click a few buttons and their bank account is topped up with more money. Some traders believe they can be profitable just from watching some videos online or read some books. Trading psychological endeavour. You can save a lot of time and money by getting a good mentor and having a good trading system.

Qn: apart from having the right skills and strategies, how important is location to the success of next?

CS: most people are not disciplined and can’t or don’t, put in the time and effort required to trade. They need to have a system that is usually chosen to be profitable and strong. Record keeping is extremely important because if you can’t measure the financial performance you can’t improve. You need to create a treadmill to meet the feedback of your trading.

In one of the states of the region the following course (SMT), we share this acronym to help you remember: ETET. You should always know the entry price, target price, price of exit (stoploss) and the time frame. These are some of the information that should be recording the reactions of the future of learning in your trading plan.

Qn: what are some of the attitudes that you have which you think allows you to become successful in what you do?

CS: that independence and retroactively. I know myself well enough to know what’s working for me and what won’t. Also learn more about the current situation of trading through the act, and constantly make the necessary adjustments.

Read also: what is CFD and how long should investors and traders to use it?

Part 2: forex trading – Rayner Teo

rayner teo
Rainer Teo

Source: Rayner Teo

Rayner Teo is independent of the following ex support the following, and the founder of TradingwithRayner.

Is the most follow the trader in Singapore, voted Top 5 very useful business on Twitter with more than 23,000 trade read the blog every month.

Qn: how long have you been trading forex? What your trading strategies.

RT: I’ve been trading forex over the last 8 years.

I thought the Tتشق the following approach. This means buy when the market is trending up, and sell when the market is trending lower. Out of my trades if it goes against and I ride the trend if it moves in my favor.

Qn: what are some common mistakes that you usually see trade newcomers?

A common mistake of many traders is the search for the “holy grail”. Well don’t exist. If you ask me the closest thing to the Holy Grail is a loss of not more than 1% of capital on each trade, so you can live to fight another day.

Another common mistake is the development of a trading strategy after a few losing trades. This “cycle” keeps you in an endless race to find a perfect system, which as we have mentioned previously does not exist. Instead, new traders should find the approach that fits their personality and their goals.

Qn: what are the focus areas that should pay attention to instead?

RT: traders should pay more attention to having a detailed trading plan. You must set some parameters on your pages, such as what type of Of market conditions you should trade on how to enter your trades, how to get out of your trades how to manage your trades. And if things don’t work out, you can look back at your plan, learn from them and find ways to improve it.

Also, you want to focus on risk management. Without it, even the best trading strategy won’t save you from blowing up your trading account.

Qn: apart from having the right skills and strategies, how important is the attitude/mentality for the success of next?

RT: discipline and attitude is everything.

Qn: what are some attitudes that you need to.

RT: you have to accept that you may be wrong more often than you’re right and still make money. Always stay hungry and keep learning about yourself and the markets. They have the grit to keep moving forward even when times are tough.

Qn: what are some situations that are better off not?

RT: “I know everything” attitude refusing to recognize and learn from your mistakes, and also learn the individual trade outcome.

Qn: what are some of the attitudes that you have which you think allows you to become successful in what you do?

RT: perseverance and the ability to think and improve.

Read also: how the spread works in Forex Trading?

Part 3: options trading – Alex day

alex yeo
Alex day

Source: Alex day

Alex Day is a self-directed trader and co-founder of BigFatPursea leading financial technology company in Singapore.

He trades futures options in the first place and holds a certified financial technician (CFTe) set supported by the International Federation of technical analysts (IFTA).

Qn: how long have you options trading? What is your trading strategy focus on?

AY: I started trading options 3 years.

The sale of the options in the first place and collect the premiums. I’d like to focus on selling futures options.

It’s very similar to how insurance companies sell you a policy and collect premiums. If anything happens to you the insurance company just keeps the premium.

The option of the seller, and choose a price level that I think that the market does not reach the sale of an option contract in that the price level and collect the premium. In other words, the buyers pay me when you buy the option contracts.

There are several reasons why people buy options – high lift, check positions of. When you want to buy someone that sells them. I’m the one selling and I get paid the insurance on the risk.

Qn: what are some common mistakes that you usually see trade newcomers?

AY: one thing I noticed is that new traders tend to believe that if they worked more on trading psychology, they will be profitable.

While the psychology is important, before focusing their attention on this, you should make sure that the strategy has its advantage in the first place. If you have a strategy does have the advantage, no matter how you on trading psychology, will not be profitable.

Qn: what are the focus areas that should pay attention to instead?

AY: we should find and develop its capacity in the market. They need in-depth understanding of how prices move take advantage of the 2 level of interaction back-test or forward-test their strategies.

Qn: what are some myths that people usually hold when it comes to options trading?

AY: they think that trading is easy and you can make money with little effort. All you have to do is to identify some of the chart & candlestick patterns and easy money up for grabs.

If it was so easy, everybody would be making a killing in the financial markets, and nobody needs to work anymore.

Another one of the myths think you can trade for a living with 1000 $account. Because assuming you need $ 3000 a month to survive, you are looking at a return of 300% each month constantly. It’s only a matter of time before you lose this account.

Qn: apart from having the right skills and strategies, how important is the attitude/mentality for the success of next?

AY: very, very important. If you look at Successful Traders, they all possess certain personal qualities and attitudes.

Qn: what are some attitudes that you need to.

AY: discipline and perseverance

Qn: what are some situations that are better off not?

AY: the ego. Business can be selfish. They always think they’re right.

Qn: what are some of the attitudes that you have which you think allows you to become successful in what you do?

AY: though it seems stereotypical, and perseverance play a big role. There is a learning curve and it may take a few years before the business can see any success.

Read also: what is commodity trading and how does it work?

What can we learn from their views

When we see the responses of the three experiments, we note some of the similarities are undeniable between their answers even though they trade in very different financial instruments.

For starters, all three trade support and on the importance of having a trading strategy right,[cause id=”attachment_40209″ align=”aligncenter” width=”1″]Advertisement [/caption] spend the time to refine and improve the strategy and not constantly hop around from one strategy to another. Another important area of focus is risk management , where losses are an integral part of trading.Advertisement

Once the trader is able to develop a trading strategy with Edge know how to manage the losses, it boils down to attitude. All three traders will agree that discipline and perseverance are of vital importance for developing long-term success, especially because it takes time and a lot of experience before traders are able to become effective in their trades.

If you want to know more about trading in general, we strongly recommend that you first get yourself educated. IG comprehensive _directed_treatment=”>directory of seminars, webinars and articles Advertisementto help you get acquainted with trading. A demo account Advertisementis also a good way to improve your trading strategies without taking the risk with actual money. Last but not least, get yourself familiar within the business community so that you can collect and exchange ideas with other like-minded traders in order to learn, be exposed to other strategies and of course improve.Advertisement

Leave a comment.

Your email address will not be published. Required fields are marked*