If you were to ask a top level trader what he would tell himself when he was just beginning, what do you think he would say? If that top level trader has a lot of experience, and has seen changes in the industry come and go, they probably would have a very long list of pieces of advice to give themselves. Thanks to the huge amount of information on the internet, you don’t need to wonder what that advice would be, you can find it with ease.
Here, we’ve sifted through the tons and tons of data out there to bring you the top three things that top traders have learned through years of experience, and have saved you hours of web searches in the process.
Point #1: Markets Evolve
Over time, things change. What was profitable once isn’t necessarily the most profitable strategy today. This is especially true when you look at the marketplaces that weren’t even available to the public 25 years ago. Binary options didn’t even exist then, and the Forex market wasn’t accessible to the general public. Things like commodities were very difficult to invest in, let alone trade, and the stock market was tough to access unless you were a Wall Street insider.
In today’s economy, you have easy access to all of these things. Many are dangerous for the small trader,but many can be very profitable. It’s likely that there will be more changes in the future as regulations change and new methods come into light, but for now, there has never been more opportunity for the average trader than there is today.
Point #2: Not All Info is Good
There are tons of resources out there for the short term trader. Most of it is either garbage, or doesn’t apply to what you’re doing. Therefore, using it is a very bad idea. You need to find the best and most useful info. It doesn’t matter if it’s finding the right signals service, or reading the right books; if you can’t use the information to your benefit, than it is not a good thing. The news is the same way. Trading the news is wonderfully effective, but you need to know which pieces of news are going to help and which won’t. For some, this is a skill that can only come through trial and error. For others willing to dive into the research and look at what history says about their specific assets, the process goes much more smoothly.
The biggest problem here is often timeliness. Your news needs to be current, and you need to act upon it at the right moment. Binary options traders thrive here when done correctly because their trades have a built in end to them, so they don’t need to sit in front of their computers and wait.
Point #3: You Have Resources. Find Them!
There are lots of good resources out there, all designed to help you. If you’re not using them, you are missing out. For example, if you trade stocks, are you paying attention to the NASDAQ Economic Calendar (http://www.nasdaq.com/markets/us-economic-calendar.aspx)? This has a list of all the major (and minor) news events that influence how traders think about their markets–and this goes for those that trade stocks, indices, currencies, and commodities. It is U.S. specific, but the dollar is the world’s most highly traded asset, after all, and has a broad reach. There are tons of things out there like this calendar, and they are all going to increase your knowledge of how the market works as a whole.
Once you take this knowledge, and figure out how it applies to your small section of the market specifically, you will be able to understand the inner workings of a successful trading day more thoroughly, creating more profits along the way.