Trading Wiki

Everything You Need to Know about Trading

There is a lot of data that exists for understanding markets and the economy. However, it can be a daunting task to find the information that you need. Millions of dollars are spent by multiple traders on courses and stock analysis software. All that money wasted just because the buyers do not grasp the key principles of successful trading I am about disclose. All that you need is the ability to comprehend the information am about to share with you.

Tips to help you on the journey to trading success:

Making money in all market conditions

While the media constantly reports the awful headlines, what they don't tell you is that there are many ways for you to make money as a trader. With spread trading, you can profit a lot from shares, markets, currencies and products to go up (long buy) and products to go down (short sell) and sideways trading (barrier range).

Remember, shares fall fast then they can go up, thus, while trading it is easy to make money in a descending market than in an ascending market. Nonetheless, financial markets are like a seesaw, if money drifts out of the market, for example, equity markets, then it drifts to another market, say commodities or bonds.

Start small and build up

Initially, all successful traders have to start from scratch and build up while trading. You can start trading with just $2000 of risk capital and later trade with $50,000 plus per transaction without even blinking. Trading with practice accounts offered by some financial bookmakers comes in handy since you don't have to trade through the real system, and there is no risk at all. Eventually, you can embark on trading with small stakes and build up.

One of the most beneficial keys of success in trading is learning to use the power of compounding profits and traders.


When trading, always trade in many products like currencies, commodities, stocks, and bonds. By diversifying, you minimize your risk of suffering from loss. Trading in gold, oil and wheat and one of the above will give you a better and balanced account. Nevertheless, you can try trading in some sectors like telecommunication and tobacco. Often, some sectors tend to go up while others go down. For example, telecommunication sector could go up, and tobacco sector could go down.

Know your personality and trading style

Trading wealth does not come from short-term bets but years, months and weeks of trading. Many traders are more reluctant with the short term in and out trading that hardly suits them. Although brokers and bookmakers like to generate more business from active potential customers, most winners in the long hall are the least active traders. Staying glued to your screen all day doesn't guarantee you trading success, some traders only check prices at the end of the day, and they have amassed great wealth from trading.

Money management

While trading, money management is the key to survival. A good trader does not need to make money that frequently. You could get about 70% of your trades wrong and still make money. For example, you could lose $300 on six trades and make $600 on just two trades. No matter how certain you are that a market is going to crash, always make your initial trading amount small, and then, if you are right, invest more in that trade. Establishing a successful trade is the key to making huge returns. Never invest in a losing trade.

Cut losses and let winners run

Many people tell you this but a few of them can do it. Trading boils down to psychology, and everyone has a strong desire to win and no one likes the thought of being classified as a loser. Many unsuccessful traders take their profits quickly, and yet they will patiently wait for the losing trades to continue running hoping that things will look up. What's best is to have a mechanical approach to exits and entries. Simply put, you should have a cut-out point set in before trading.

The crowd and media are not always right

In trading, some of the best times to invest are when the crowd is frightened. Markets usually crash since they lack buyers, and not because of the sellers. Beware that a stock market collapse does not start when everyone it. Great examples include the oil market in July 2008 and the NASDAQ in March year 2000.

You don't have to trade every single day

Only gamblers go on trading in the market every day. Often, the best bets are the ones you don't bet. Trading can be very addictive specifically for losing traders who are looking forward to getting even. Nevertheless, some winning traders can also become addicted. They press on with a burning desire and want to take over the world in just five days.

Minimize all your trading business costs

Many trading systems have only the marginal profitability and trading implementation costs. Commission, spillage, and spread can be the difference between loss and profitability. It is worthwhile that you look and identify a low-cost way to implement your trading. By carefully selecting a broker, slippage, high commissions and wide spreads can be lowered. Investing too much in trade implementation is an avoidable way of incurring losses while trading

Take a break

Taking vacations at least two weeks after a year of trading is very important. Purpose this time to understand what you want to achieve and within what time frame you want that achieved. When you do all this and embark on serious trading, your trading business will have a focus of attaining those goals. Traders with clearly outlined goals are more successful than those with pre-defined goals.

Never trade frightened money

No one in the trading business emerged successful trading money, and doing it to clear their mortgage at the end of the month. Trading with financial trouble is one of the ways to mess up the trading disciplines. Trading is about taking calculated and reasonable risks with an aim to achieve good rewards.

How to make big money trading

If you could identify your grandpa from your next door neighbour, you are fit to trade. You do not have to be a genius to be a successful trader, but you need the smart. How can you make money trading currency? Let us look at a few things that could make you an excellent trader.

Set a goal to become an excellent trader

The mark of excellence can be earned in almost anything you choose to do. Making money from currency trading requires you to learn and master some elements of success and commitments. The currency market is cruel to the lazy, disoriented and disorderly. Only few who have a structured approach and work ethic have made it. So, to be successful in this field, you must cultivate this attributes.

Currency trading is no mystery. Anyone can make it. Nevertheless, just like all those who have become successful in this field, you must pay the price. There are important decisions, and you must make and question you must answer. For example, what is needed to become a great trader? And, am I willing and ready to pay the price?

Before you embark on currency trading, all these questions must be answered. Your mind should be made up that you want to become a currency trader. Indecisiveness will cause you enormous loss. Therefore, it is very imperative that your decision is clear with due diligence and a lot of dedication. While trading, you will encounter the trained and the untrained. It is only fair that you get some trading education in case you are up against the sharp minds. Be fully prepared.

What are the required skills for a successful trader?

Currency trading requires a trader who is educated, who has a trading plan and market phycology for his success, emotionally focused, and disciplined.

Trading Education

Trading education is of utmost importance for anyone who wishes to trade and succeed as a trader. Find a good currency trading training centre to put you through the trading process. For newbies who have not yet traded in the financial markets, it would be better for them to try equities first before attempting currency trading. Starting with slower markets is easier for newbies to grasp the concepts required.

Developing a trading plan

Just like embarking on a journey without a roadmap gets you lost, trading without a plan sets you up for failure. Many currency traders have ended up getting burned just because they did not have a plan. Just like your training is vital for your trading success, developing a strategy and structure for your success is equally important for trading success. There are certain things you should consider. Like the currency pair you should trade, when the ideal time to take a position is, how you are willing to trade at a time and the brokerage firm you should use.

As a trader, you should jot down your trading thoughts. For example, if you intend to place any trade you record that. Journalizing your thoughts is a very good way to build your confidence. These are some examples of the thoughts you should journalize: why the trade was taking place and what kind of analytical decision was made before taking the trade. Either you win or lose you can always take a look back at your assumptions against the reality of your trades after you exited the positions.

Focused emotions

Many successful traders have one thing in common: a focused mind. One trading day has three activities. Different crosses and pairs but do you go ahead and trade them all at once? Of course not, for example, if you are learning to bake a cake, you don't start with five but you start with one. With time, as you master the art you begin to add more dough to the baking tray.

The same is with currency trading. To understand and master your trade you need to choose a pair you think you can master. Learn to trade it quickly and with ease. Learn what drives it, the key players, and an individual's voice that could change the market and become very proficient in the currencies involved. Focus on bettering your trading skills each day and maintain that until it fills your dreams.


For the birth or rebirth of habits and routines, discipline plays a significant role. A good reference is that of a baby learning to walk. When you started walking, you never imagined running, however, you now do. While learning and growing you fell many times, staggered but eventually you got up. But wow! Today you have grasped the act of walking.

The same applies to currency trading. Currency trading requires discipline, focus, purpose and planning to coordinate trading success. You can't have it any other way. Just like actors and actresses train hard and consistently to master those simple key things, your discipline is as important. Furthermore, doctors learn to master the simple things that are very helpful in saving lives and to boost their confidence. You will eventually grasp for everything is hard before it is easy.

Market psychology

What a successful trader does to make gains when a lot of individuals in the market are barely making any gains is what sets him apart from the other traders. Currency trading is not rocket science. So, a consistent winning streak is possible. Currency trading can be very rewarding once you have mastered the simple key things discussed.

Although making money trading currency, this should never be your ultimate goal. Always focus on improving your trading skills and becoming a prolific currency trader. If you use this strategy and combine them with all the others, money will chase after you in abundance. To lead a life of independence, you must first learn to think freedom and independence within you.


In this article, there is a wide coverage of the great variable of successful trading. Nevertheless, a lot of information on all the key factors you should consider if you are aspiring to become a successful trader. Furthermore, you have been enlightened on some pros and cons of trading and how you can make big money trading. Lastly, all the skills you need to become an elite currency trader have been outlined and explained.