admin dezembro 12, 2018

This article was written in partnership with IG,the world’s No. 1 CFD provider (by revenue excluding FX, 2016). All opinions expressed in the article are the independent opinion of DollarsAndSense.sg

Trading and investing are two different ways to make money from the financial markets. Investors aim to achieve profits by investing in assets that either 1) increasing in value with the passage of time or 2) pay a dividend or coupon payments, trade and profit from continued price volatility in the asset they trade.

A trader who is able to consistently capture the price difference in the assets, can make a big profit in the short term, especially with the ability to use leverage to increase exposure to him or her.

Of course, the opposite is also true. Using leverage can also lead to large losses if asset prices move against it. It is not uncommon to hear stories of how new traders bust their trading account due to poor risk management.

To give us a better idea of the kind of “rookie” mistakes that people make when they start trading we talked to three well-known business in Singapore to get them to share some of the mistakes than they were when I first started trading some of the learning outcomes.

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

# 1 Rayner Teo, the founder of the TradingwithRayner

Rayner Teo is independent of the following ex support the following, and the founder of TradingwithRayner. It is also the most follow the trader in Singapore, with more than 41,000 Trade read the blog every month.

Qn: Hi Ryan, you’re an independent trader and coach. Your website, TradingwithRayner , teaches people how to become profitable in trading. Can you share with us when you first started trading?

Rayner Teo (RT): I first learned about trading in college after Forex broker came to my school and organized a trading competition. This is how I started.

Qn: what do you often trade these days?

RT: I trade across different futures sectors. These include currencies, indices, bonds, commodities, hard and soft power.

Qn: what is the biggest or the most ridiculous mistake(s) that you ever?

RT: there may be more but I will list down three particularly relevant ones.

First of all, I’ve spent many years in the search for the “Holy Grail” which I later realized clearly does not exist. Second – I also often hopped from trading strategy to another, which made the trading results are very contradictory. Finally I tried to trade full time with $ 10,000 in the trading account. It is clear that things are not going well.

Qn: how do these mistakes will help you become a better trader today?

RT: I learned how to be independent to the sea, and that gives me confidence in my trading strategy. This is something no one will be able to do for you, only you can do it yourself.

I also learned that a variety of actions that will lead to consistent results. You can be consistent in your actions and still have consistent losses. But because your actions are consistent, you can analyze your strategy and find ways to improve it. If you have inconsistent results, it is almost impossible to analyze how you can do better.

Also put aside $10,000 in your trading account does not make you a trader and certainly doesn’t mean you can start living off the back of it. You need to have multiple sources of income to determine the trading psychology because it increases I—-syndrome funds from the get go. So don’t leave your full time job just yet!

Qn: the most common mistakes you see newbie traders decisions, and how can they be avoided?

RT: some of the new traders only want to feed me and refused to do the hard work of learning on their own. Remember, no one will do the learning, research or analysis. If you succeed or not depends largely on how much you want it, and how much effort you are willing to put in.

You must also avoid trading the amount is too large relative to the size of your account. If you have a $ 10,000 account, you should be risking no more than 1% on each trade. This means that you have to lose more than $ 100 on each trade you are wrong, unless there are delays.

# 2 Alex day, Chief Operating Officer (COO) at Dr wealth

Alex is the COO at Dr. wealth. He is also a self-directed trader who trades primarily in the future of options. He holds a certified financial technician (CFTe) set supported by the International Federation of technical analysts (IFTA).

Qn: Alex is the main partner at Dr wealth, you certainly had her fair share of good and bad trading experiences. Can you share with us when and how started in trading?

Alex day (AY): you are self-employed earlier, start my online business in 2011. You did a good job, some savings accumulated intends to use some to invest in the stock market.

At the time I didn’t understand how to read bid/ask price. Until I started attending a small number of securities and investment cycles. Initially, my plan was to buy and hold some good stocks and hope to benefit from them in the coming years.

I learned to value companies using fundamental analysis in the first session that I attended. The learn technical analysis on short-term trading immediately became extremely interested to learn more.

Qn: what do you often trade these days?

AY: i trade options. Most of the time I sell options, i.e., the collection of insurance premiums. Recently started buying options also.

Qn: what is the biggest or the most ridiculous mistake(s) that you ever?

AY: the silliest mistake was in 2014. That was the year I started trading options. Before that, I was trading primarily stocks and currencies.

In 2014, the price of crude oil dropped from about $ 100 to $50. I sold the Put Options think that oil prices will not keep heading south. We have been selling put options and rolled the Mojave, even though I was wrong. Rolling means that I kept close to the loss of jobs and unlock new ones, hoping that the newly balanced positions that would cover the initial losses. Rolling doesn’t work if prices kept going against you.

And that’s exactly what حappened me. The losses escalated. I had to grit my teeth cut my positions completely and accept a full loss. Didn’t blow up my account but the withdrawal has been destroyed 40%. Thankfully, the capital put in my trading account wasn’t that great.

Qn: how do the error help you become a better trader today?

AY: first of all: wrong taught me to follow this trend. Be a trend follower and avoid going against it. In other words, if something goes (bullish trend), you will go long. If it goes down (bearish), I will go short. In the option context, I only sell put options if in an uptrend and sell call options if a downward trend.

Secondly, it taught me to cut losses quick. If you are holding a position and the price didn’t go as I wanted to exit my position. I’m better that the small loss of the enjoyment of a losing position or roll and unfold the biggest loss in the future.

Qn: the most common mistakes that you see most of the newbie traders theDecisions, and how can it be avoided?

AY: many new traders like to catch the absolute top and bottom. They may feel that prices have risen too high and too quickly and that will start in the fall. It is believed that he has reached the top, they choose to short sale only to realize that the prices continue in the upward direction, which leads to losses.

Catching the reflection of the price can be alluring and exciting. But more often than not, it is a sure-fire way to lose money consistently in the market.

# 3 Collin Seow founder of the methodology of the following

Colin is the founder of the methodology of the following, which is the direction of the trading course that provides people with trading investment strategies that will help them navigate in complex financial markets. He is also a qualified chartered portfolio manager (CPM) holding a certified financial technician (CFTe) qualification, and is a member of Mensa Singapore.

Qn: Colin, you are a remisier and also full-time the following/your own boss. Methodology the following teaches people how to become a profitable trader. Can you share with us when and how started in trading?

Collin Seow (CS): since young, I was always interested in trading. The first exposure to technical analysis when there was still a bucket shop trading goods all over the Tanjung. In those days, people get stock prices through Teletext. These bucket shops will teach you technical analysis, with the hopes that you will trade through them. So I started trading stocks Singapore, before moving to the commodities and futures.

Editor’s note: the bucket shops are used to describe the informal brokerage companies. For those of you who have watched the Wolf Of Wall Street, the protagonist, Jordan Belfort, worked in a bucket shop.

Read Also: 5 movies to learn more about finance without sleep

Qn: what is the biggest or the most ridiculous mistake(s) that you ever?

CS: listening to others. I still make this mistake today. I used to be a remisier and because of the nature of our work, we don’t hear a lot of rumors. In one case, held a big position when you are abroad. By the time he returned I lost about$ 200,000. Thankfully, I traded actively and I managed to make to about 80% within a short period of time.

Qn: how do the error help you become a better trader today?

CS: I learned to ignore the rumors, no matter who it is. I only trust facts, charts and research that I do.

I also don’t know to hold position when I’m overseas and won’t be regular. Also, I don’t want to have the additional pressure of time with my family.

Qn: the most common mistakes that you see most of the newbie traders decisions, and how they can be easily avoided?

CS: not to get a coach or mentor. For me, I get to school everything I want to learn well of trading breathing and even singing. If you know of a “friend”, you run the risk of picking up bad habits from them if they are not qualified. If you want to do well in something, on a coach or a mentor.

What we learned from the interviews

It seems that protecting your downside should be your first priority. Ryan shared that you should not risk more than 1% of your capital in any one single trade. Alex also shared the importance of knowing when to cut your losses is crucial when you are wrong.

This is where risk management is important. On its trading platform , IG allows to put in different types of plants including trailing stop to reap your profits, and ensure to limit your losses.

Read also: find out how these tools of risk management of the IG can help you with your trades

Having a strategy in place is also necessary. Like what Ryan shared, when you have a consistent strategy that gives you consistent results, it allows you to make adjustments so that you can slowly work towards a win-win strategy.

Aside from reading articles to educate yourself, you can also join seminars and events to learn more. The IG community is another good way to exchange ideas, discover new products and discuss market opportunities with like-minded traders.

If you are new to trading and want to start the day, we strongly recommend that you start with a demo account first. This wسوء allow you to improve your strategy, allow yourself to leave your emotions out of your trades and make mistakes that will inevitably have before actually trading with Real Money.

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