Important trader habits
1. Learning the basics
It takes a long time to develop the habit of learning. Learning and reviewing the basics is equally important for beginners and more experienced traders, especially when it comes to basic terms. As in any other field, it is difficult or almost impossible to succeed in trading without knowing and understanding the basic principles. It develops reading and viewing materials on trading.
2. Market research
Knowing the basic concepts is the foundation that will allow the trader to move forward. But in order to trade an asset, it is not enough just to have the required minimum of knowledge. The market is constantly changing, and you need to understand why it is happening. After selecting certain assets to trade, it is useful to study them deeper. Stocks, currency pairs or even cryptocurrencies — there is always an opportunity to dig deeper, learn about past events that led to an increase or decrease, and learn as much information as possible about an asset.
3. Reading news
Nothing lasts forever and market conditions can change instantly after important news releases. It is very important to read the news and find information about popular assets: the knowledge gained may be used to your advantage. The habit of regularly reviewing the news will help a trader understand the connection between chart movements and events in the real world. Staying up to date and keeping up with the latest news is a valuable skill for traders.
4. Application of technical analysis
Technical analysis is an effective tool widely used by traders. Even novice traders learn at least two or three popular indicators and begin to apply them in their strategies. Naturally, no indicator can guarantee absolute success, but they still help to analyze the movement of the market.
5. Following a trading plan
Another important and undoubtedly very useful habit is making a trading plan. Writing a plan that describes all the details of a trader’s strategy is useful for several reasons: the plan helps to maintain discipline, controls the trader’s behavior, and does not give free rein to emotions. Keeping a trader’s diary is another way to look at previous trades and, with the experience gained, start trading better.
6. Money management
You might think that the most important thing in trading is making money, but in fact, the opposite is true — the most important thing is not to lose money. Saving your capital and accumulating it instead of risking it and losing money is a skill and habit that a trader must develop. Read more about money management in our article.
7. Communication with other traders
Discussing the market with other traders and studying other people’s experience will come in handy both in terms of new knowledge and in terms of socialization. However, blindly following the advice of other people is a bad idea: it can lead to bad deals, and in the worst case, even to meeting scammers. The main thing is to listen to what others have to say and analyze it, but always use your own knowledge and experience when making the final decision. Pocket Option opens up ample opportunities for traders to communicate with each other — public chats on the platform and other social networks.
