Just starting out?

Someone asked me for some guidance for a new trader, this is what I sent him:

Are you just starting? Having a demo account is good but I find that until you have real money on the line and your emotions come into play they don’t help that much, but are good for learning the platform.  As you are starting keep your leverage low, bet small stakes (50p or a £1, not more than £2 unless you are seriously loaded and running a large account and can afford to lose lots). You will lose as you start out, everyone does I reckon. Don’t lose loads! Aim to get rich slowly, not poor quickly and don’t overtrade.

Hope that helps. Its very exciting, rewarding, stressful, emotional and educational all at the same time! Oh, and don’t overtrade!!! (Cant stress this enough)

4 Comments

  1. Nick
    When you say don’t over trade, would you say over trading is more than 3, 5, 10, 20 trades a day ??
    I would say 10 but interested to hear your view.
    Many thanks

    1. if you’re scalping ie. looking for 2-5 pips trading off of 1-5min charts then 10 or so trades a day is fine. If you’re trading off of 1hr/4hr charts then 2-3 trades a day max, If you’re trading off of daily charts then 2-3 trades per week max, see where we’re going here…?!

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