Nick JonasMillions of people indulge in online trading, which is a massive industry with billions of US dollars in revenue. Of course, not everyone is going to be a winner in this game, but so many people can score big. But there is one thing you should be aware of.
There are so many stories around the internet about how people are massively successful as traders, but only a handful of them can show proof of their success.
It is even more tiresome when those people are spreading their word and giving advice to other people on how to be successful. That does not necessarily mean that every piece of advice you find online is bad, but you should be extra precise about which ones you will follow.
Today, we want to talk about the best and worst online trading advice you can find. Without further ado, let us begin.
1. Find the Method That Suits You
You would not be here if you weren’t interested in trading, right? That is a start. The next thing we want to talk about is finding the right trading method you should pick.
You can find so many options online. Nevertheless, easily the best advice you can get on this topic is to find the one that suits your preferences and potential. Of course, this is easy to say and much harder to do for numerous reasons.
One of the reasons is that most of the people who are about to enter the market already have a full-time job. They do not have enough time to commit to all the complex systems present on the market.
Therefore, they cannot tailor the strategy themselves simply because of their lack of knowledge. Fortunately, numerous experienced people online can provide some advice on this subject.
Those who have more free time can start reading about all the patterns that are present in the market. Still, this requires a lot of time.
So, you need to think hard about what should be done before deciding what method to use. It requires a lot of time and effort before you can find the best approach. Therefore, we can say the best approach is to find the method that suits you the best.
2. Hot Tips
Just think about the following situation: you come across a hot tip about a stock that will explode in value in the next couple of months. You invest, and you see the value plummeting. There are so many examples of this happening.
You will not seek advice about a certain medical condition from a carpenter, right? It would be best if you had the same mindset when it comes to these hot tips regarding online trading.
We should ask ourselves why there are so many people without any experience or background giving advice on how to conduct themselves in trading.
The reason is quite simple: the market is massive, and there is a lot of space for people to sell their insights, whether real or fake. That is the real reason why there are so many insights out there. Stock tips are a bad way to go for many reasons.
Individuals who usually follow these tips have less knowledge about the market. One thing that can happen is that stocks are bought with low selling potential. It is the easiest way to lose money; that goes without saying.
That is why we would say that getting some hot tips about stocks about to explode is important, especially for people who do not have any knowledge about the market.
3. Do Not Abandon Your Strategy
Another good piece of advice you will often come across is not to abandon your strategy soon. Certainly, there are so many examples people shared online about how they abandoned their strategies pretty fast, which was a bad move.
Why is that? It’s rather simple: no matter how good your strategy is, the first results will certainly not be the most favorable. They will be mixed at best. You should know this.
You can explain this by using the mathematical law of large numbers. The larger they are, the lower your chances are. Still, that does not mean you will not be successful in the end. Generally speaking, you will need up to a hundred trades for you to find out whether your method is successful.
The biggest mistake you can make to measure the success of your strategy is to measure it on a small sample size. You cannot determine whether it is a good thing to do or not in this case. So, be patient and wait for a bit before you can decide whether this is a good thing to do or not. It’s also a smart idea to use expert advisors or trading systems like the “Immediate Edge” app which can be seen here. These types of platforms are quite common; however it is always prudent to conduct proper research.
4. Taking Early Profits
The last thing we want to talk about is another bad piece of advice: taking early profits. The main idea behind trading is to invest as little as possible to reap the highest possible profits. It is a hard thing to do, and it will not be done fast.
So, whenever you hear someone advising you to take early profits, this is simply not realistic, and it will not happen 99% of the time. Sadly, many present this as if it is way more common.
Beginners are especially susceptible to this theory. Surely, the idea of investing small amounts and getting higher profits in as little time as possible sounds good, and there is no reason why it should not be done.
At the same time, this is a mistake so many beginners make. That is why it is of the utmost importance to think really hard before you decide. Do not think it’s going to be easy to earn massive profit.
Summary
With so much trading advice you can find online these days, it is quite hard to determine whom to believe. Therefore, you should be as careful as possible. Here, we’ve provided you with two best and two worst advice you can find online. You will find them to be of use; we are certain of that.
