Risk is something that exists inseparably with trading. It makes many beginners lose huge sums on the market.
Nevertheless, the game is worth it. You have still great chances to become successful in trading. In fact, the majority of traders have begun like this. Losing money, slowly moving forward, spending a lot of time learning. This is the way to success. And this guide will speed things up.
I will share my knowledge about trading to help you enter the market and not to experience severe losses.
- 1 A 5-step approach to trade with profit at Olymp Trade
- 2 A straightforward path to make money at Olymp Trade for beginning traders
A 5-step approach to trade with profit at Olymp Trade
There are plenty of strategies available on the Olymp Trade site. You should get to know them and choose the one that fits best your type. Before you implement the strategy on the live account, head over to the demo one ad practice a bit. I would recommend holding positions for a longer time, as they have bigger winning rates than the trades lasting 1-minute.
70% on the practice account.
A free demo account is a wonderful place and you should use it well. Train until you reach the winning ratio of 70%. In other words, until you will win 7 transactions out of 10. This way you are able to cover the potential losses and you will end up with a profit on your account.
A live account.
A demo account is a wonderful thing, however, it will not bring you money. So it is important that after some time of practice, you will move to the real one. Begin slowly. Deposit a small amount, maybe $10, maybe $50 and make small investments. The task for you is to keep the money on the account as long as possible. Practice the money management strategy and if the meantime you will earn some money, that would be a great bonus.
You know already how to keep your money on the account so now is the time to make some profit. Establish your goal for a day or a week. Next, calculate how many successful transactions you should make in order to meet your goal. Also, how much you should invest in every trade. And do not let the emotions mess with your judgment. Once the target is accomplished, pause trading for a time.
Focus on opening good trades. The quality is more important than the quantity. More trades increase the risk of losing. So the fewer transactions that will assure you reach the profit goal, the better.
You have just read through all 5 steps necessary to become successful in trading. Everything depends on some individual features like the ability to learn and personal style, but I would say practising all the 5 steps should take around 3 months.
A straightforward path to make money at Olymp Trade for beginning traders
Your success as a trader depends largely on your ability to integrate some basic skills. Here they are.
The first skill is knowledge. You have to learn reading the charts, using the indicators and recognising good opportunities.
The second is emotional control. It is normal that emotions will be present in your trading. This is an exciting game. But they can kick you out of the balance. They are not good advisors. This is why you have to learn emotional management.
The third skill is a money management strategy. I cannot stress it enough, there will be always the risk in trading. It is crucial that you protect your money before you even think about earning more. Only this way you will be able to make money in a long-term.
Boost your success rate on the Olymp Trade platform
Following the “ones” rule will increase your chances of winning. What does it say? Trade 1 asset and use 1 strategy. Determine timeframe and investment amount and stick to it. It is not a good idea to open multiple transactions at the same time, nor increasing the investment amount. Moreover, if a strategy you are using works, do not change it in the hope there is a better one.
Look at the example below.
I chose the EURUSD currency pair and the pinbar candles strategy with the support/resistance level. Even when I could use some other strategies to identify entry points, I would stick to my strategy. I will be looking for pinbars.
Sometimes it takes a long time until a pinbar develops. But as the chart shows, when the pinbar appeared I could enter a position of long duration and be pretty sure it would be a winning one.
Waiting is also a skill you should develop. The majority of the time you will be spending before your computer looking at the chart and waiting for a good entry point. But the good thing I want to tell you is that patience raises the chances your winning rate will be 70%.
You must realise the enemy is not the market. It is you. You need to fight your own greed, your anger or fear. With time and a little bit of practice, you will gain control over your emotions and then you are on a good way to success.
Begin with $10 on the account
I know you came here to earn money. But you will not make any money if you cannot keep what you have. So my recommendation is to start small. Deposit only $10 and see where it takes you.
Let’s say you lost these $10. You probably do not worry too much about it. But hey, the attitude is very important. If you do not regret $10 why would you when it is $100? And what about $1000? If you do not care about small losses it may just bring you more of it.
Deposit $10, invest $1 in a single transaction. Check the balance at the end of the week. Is it smaller than $10? Is it bigger? Or maybe it remains $10? If it does not drop below $10 everything is fine. When you can keep as little as $10 on your account, you can start increasing the balance and investing bigger amounts.
Make a plan, set a trading goal and stick to them
You have proved you are able to keep your account balance. You have begun to make some profit. Now you should think about turning trading into a business. This means you should make a plan and set your goals to achieve in a given time. It may be a week or a month.
Your trading history will help you to establish your goals. Check what was your weekly profit. Let’s say it was $500. You can set the goal for $1000 and double the investment amount for a single trade.
Do not forget that you do not want to trade much. You want to reach your goal with a minimum number of trades.
Eventually, you ought to prepare a plan that will allow you to achieve your goals. Once it is ready, just follow it.
Wish you successful trading!
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