A year has passed since I began trading on the Olymp Trade platform. Sometimes I won, sometimes lost. But I was convinced that money is within my grasp. I only had to find out how to make it happen. What I did, was try many different strategies and keeping records of them. Thus, I could continue to work on the methods that were working and got rid of those that weren’t.
Then came the moment I had noticed something was changing in a good direction. My trading was successful whenever I did 4 things that I want to share with you now. If only I omitted one of those things, I experienced losses. I believe these are my 4 secret steps to success at Olymp Trade.
|→Treating a demo account like a real one helps to build confidence and trust in trading strategies.|
|→Avoiding 60-second trades can reduce the impact of emotions on trading decisions.|
|→Reviewing trading history regularly helps to identify patterns and improve strategies.|
|→Developing and following a trading plan can lead to more consistent results.|
Treat a demo account like a real one
There is one great advantage that the practice account has over the real one. It is obviously the fact that you do not trade with your own money and what it further means you do not lose your own money in case of failure.
That is the reason why you should always practice strategies on the demo account. It does not involve high risk so your funds are safe.
Every time I want to see if the strategy is effective or not, I would shift to a demo account. I try the specific tactic more than once. And only after I am sure it works as intended, I will move to the real account and use a given strategy there.
Moreover, I will try not only strategies on the practice account but also different financial instruments or the investment amount for a single trade. I practice, I try different possibilities and when I know what works and what doesn’t, I switch to the real account. And without hesitation, I choose the market, the strategy, and the investment amount.
Many beginning traders use the practice account as a playground. They invest huge amounts, they use random strategies, they do not think much. It’s not their money after all. But this is wrong. Do not get used to such thinking. Treat a demo account like it was a real one. Otherwise, it may cost you real money in the future.
Using a demo account the way it was a real one boosts your confidence and trust. It helps you to distinguish the good moves from the bad ones, you get to know the strategies that work well and you become confident it will work on the real market as well.
My advice is to spend considerably long hours of training. Imagine you are an athlete. You spend hours in the gym before you are ready to show your skills. And no matter you lose or win, you go back to the training.
You should do the very same thing in the trading field. And the great news is there is a free demo account on Olymp Trade.
Stay away from 60-second trades
Of course, it is very tempting to make 82% of the investment in 1 minute. Even the thought of such fast money makes you smile. But you see, there is a problem. 60 seconds is so short, but also so long. You will feel anxiety and fear. And these emotions are robbing your rational thinking and leaving you vulnerable.
Earning good profits in just 60 seconds can make you too confident. So you would think you have found out the easy way to big money and you would place more and more money in a single trade. This is a very easy way which can lead to erasing all your previous profits. Or worse.
You should never forget that even in such a short time as 1 minute, the prices are in a constant change. And even a small fluctuation in price may result in a severe loss for you.
On the other hand, price fluctuations during longer timeframes are not so profound to make you lose everything. The price will keep changing in short or long timeframes. However, it is easier to analyze the market and predict its direction when using longer timeframes.
Check the trading history frequently
The principal rule for every trader is to minimize losses and maximize winnings. It will be much easier when you get the chance to review your past trades. The first traders held a handwritten transaction log. Every day they were checking which transaction brought a profit and which a loss.
Good news? You don’t need to do it. Olymp Trade provides a tool called simply “Trades” where you can see the whole history of your past transactions.
Now, what can you deduce from the trading history? First of all, if you made a profit or a loss on that particular day. Second, financial instruments generated the highest number of profitable trades. Then, what strategies work best, at what time you made the best investments. You can, for example, discover during trading candles on the EUR/USD currency pair that the highest payouts you receive between 10 am and 11 am. And thanks to having this piece of information you know when to trade this specific currency pair.
Pros and Cons: Advantages and Disadvantages of the Trading Approach 📈📉
- ✅Improves confidence and trust in trading strategies through practice.
- ✅Helps identify effective strategies before applying them to a real account.
- ✅Reduces the impact of emotions on trading decisions.
- ❌Requires discipline and commitment to treat a demo account as a real one.
- ❌May be time-consuming to practice and analyze strategies regularly.
- ❌May require a steep learning curve for new traders to develop and follow a trading plan.
Effective Trading Strategies vs. Risky Trading Strategies 🏆🚧
|Effective Trading Strategies||Risky Trading Strategies|
|Using longer timeframes for analysis.||Engaging in 60-second trades.|
|Practicing strategies on a demo account before applying them to a real account.||Jumping into real trading without practicing on a demo account.|
|Developing and following a trading plan.||Trading without a plan or structure.|
Build and follow the trading plan
In the beginning, I didn’t work on any money-making plan. I just wanted to earn profits trading so I picked random markets and if one didn’t bring me benefits I swapped to another.
I have to admit. It did not work. In the end, I lost more than 80% of my money and I said to myself, something has to change. I started to follow the steps of successful investors and I discovered that they all had a trading plan. That was exactly what I was missing.
Let’s look closer at what such a plan should include.
The first thing to do is to specify the time you want to spend on the Olymp Trade demo account. I decided it would be for 3 weeks. It should be long enough to find out which markets and at what time will bring me the highest profits. Another thing is to set the amount of money you are ready to put into the trade.
As was said before, reviewing the trading history is very important. I analyzed every single trade. I wrote my own detailed log where I specified the time, strategies, indicators, instruments, and timeframes I used.
3 weeks had past and I moved into a real account. I made a trading plan that covered details like:
- The amount of money I would put in the deposit
- The amount of money I would invest in a single trade
- Charts and indicators I would use
- Markets and times I would make transactions
- The moment to stop trading (for me it was 3 subsequent losing trades)
- The moment of profits withdrawal and the percentage of the account balance I would withdraw.
This is just a simple example of a money-making plan. I advise that you create one that best suits your trading style. And above all, make sure that you follow your money-making plan.
How long have you traded at Olymp Trade and what are your results? If you’re yet to open an Olymp Trade account, open a demo account today and try out my 4 secrets. Share your findings in the comments section below.
Frequently Asked Questions (FAQ) 🤔
- Q: How important is it to treat a demo account like a real one?
A: It is crucial to treat a demo account like a real one, as it helps build confidence, trust, and discipline in trading strategies.
- Q: Why should I avoid 60-second trades?
A: Avoiding 60-second trades helps reduce the impact of emotions on trading decisions and prevents potential losses due to short-term price fluctuations.
- Q: How can I analyze my trading history?
A: Review your trading history regularly to identify patterns, profitable strategies, and optimal trading times for different financial instruments.
- Q: What are the key elements of an effective trading plan?
A: An effective trading plan should include a clear set of goals, a risk management strategy, preferred trading instruments, and a defined schedule for reviewing and adjusting the plan.
- Q: How long should I practice on a demo account before switching to a real account?
A: The time spent on a demo account varies for each individual trader. It is important to feel confident and consistent in your trading strategies before transitioning to a real account. This may take weeks or months, depending on the individual’s learning curve and commitment.
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