In high school we learnt that when balancing a chemical equation, it was prudent to: –
- Apply the Law of Conservation of Mass to get the same number of atoms of every element on each side of the equation.
Number two to this rule was to first: –
2. Balance the first element – And only after it was balanced, did we get the green light to proceed to balancing another element, and another, until all elements are balanced.
Well, if you remember all that, then chances are, you also remember that all chemical formulas were balanced by adding a coefficient in front of them.
An easy topic. Or, is it?
Such is Trading.
Like balancing chemical equations, trading has its own rules.
Standard rules which may seem daunting to beginners – but are just as important for successful trading as a bible is to a reverent.
To help you put these trading rules to perspective, I will discuss them. One by one. With the hope that by the time you are done reading or listening to this post, you will have diagnosed your trading issues and you will be ready to become successful trading.
Keep in mind the importance of these trading rules and only spend another dollar on a trade when you are sure it will be profitable.
Here are our 5 Golden Rules For Successful Trading in Olymp Trade.
1. Manage Your Emotions When Trading.
The three most common emotions Olymp Traders encounter when trading are: –
- And Greed.
All these emotions are independent and may affect your trading positively or even negatively.
From my trading experience, when emotions are overlooked, they can lead you into making sloppy trades; forgoing stop loss points, re-targeting trades for higher profits and mismanagement of trading funds.
A perfect example is when you do both your technical and fundamental analysis, pick trading signals then decide to place an upward trade. Of course keeping in mind that all your signals are pointing to that direction.
Then immediately after placing your trade, instead of that asset going the same direction you picked, it changes course and takes the opposite direction.
At which point you start fearing for the worst and begin making more reckless trades in the new direction. Then again a contrary direction begins to form.
Before you know it, your account is blown.
The same thing can happen if you keep winning consistently.
If you are not careful, emotions such as greed and excitement can set in – forcing you to trade with more money. If you are not careful, this can also lead to disaster.
Tip for managing emotions when trading: –
If your emotions are running high and your heart is beating fast, take a walk down the street or just relax. Only open your trading charts again when you are back to your factory settings.
2. Don’t Just Trade! Use Strategies to Make Money!
Though there are thousands of tested and working strategies that anyone can use to make money in Olymp Trade, some traders still opt not to use any. At all.
And if you ask me, not using strategies at all is in itself a strategy to fail as a trader.
If you have spare time before starting to trade, use it to learn how both technical and fundamental analysis work.
Mastering a thing or two on strategy trading will save you overwhelming losses.
Here are some of our most popular articles on strategies that aid with successful trading: –
- How to Pick Entry Points in Olymp Trade With Bollinger Bands.
- 10 Best Indicators For Day Trading in Olymp Trade.
- Parabolic SAR | The Easiest Way to Pick Trading Direction in Olymp Trade.
- How I Used The Olymp Trade Android App to Make Ksh. 716,491 in 5 Months.
Have you found a strategy that fits your style? Go ahead. Trade.
3. How Much Do You Have in Your Olymp Trade Account? Manage Your Money.
Remember, even if you learn all the trading strategies available in the world, if you don’t manage your account well, all else minus the physical cash you have at hand is vanity.
To balance your trading equation at this level, make sure to set the amount you want to risk per trade.
Ask yourself this questions.
Is it 1% of my account balance ideal for my success?
If so, don’t go past that.
- Two, calculate your reward-to-risk-ratio. Are your rewards making sense vis-à-vis your risk?
Don’t take a risk that’s not worth it.
- Three, use stop loss orders and avoid trading aggressively.
4. Follow The Trend.
A good way to do this is to look at the direction of the asset’s price movement during the last hour/4 hours/day or a week.
Which direction is it facing?
Believe the the strength of that trend. Follow that direction. Make Money.
5. When’s The Best Time to Trade in Olymp Trade?
Ideally, the best time to trade in any market and to win trading is when there is: –
- A lot of volatility.
- Several minutes before or after the release of important news such as the non farm payroll.
- Several minutes before or after the release of a company’s financial report (if you trade stocks).
- And under normal trading conditions.
Summing it up.
If you can get all these conditions right then chances are, you will be able to achieve success trading in Olymp Trade..
But even as you use this masterpiece to improve your trading, remember, not all strategies, rules and filters work perfectly in trading as they do in chemistry.