Nathaniel Glas is a major financial trader in the investment world. However, he did not get to be where he is in a day. It took time and hard work. Here are some tips on how one can become a successful financial trader like Nathaniel Glas.
Here are few tips!
• Stay Away from Penny Stocks
While you want to start small, do not go as low as penny stocks. The penny stocks are usually illiquid, and the opportunities to hit the jackpot are usually nonexistent. When stocks go below $5 a share, they are usually delisted from major exchanges. They are often only accessible on OTC trading desks. Unless you can see a good opportunity after a lot of research, they are not worth your time.
• Time Your Trades
Most orders placed by traders usually start to execute when the market opens. This leads to a lot of volatility in the morning. A seasoned player can see the pattern even early in the morning and make the right moves. This might not be the case for a newbie. It is important to wait for a few minutes, such as 30 minutes before you start to make any trades. The least volatile time is in the middle of the day. At this time, it is easy to read patterns and make the right choices. Though the rush hours offer you great opportunities to make trades, it is crucial to avoid them as a newbie. Take baby steps in the middle of the day for you to understand how things work.
• Limit Orders to Reduce Losses
Limit orders are a great tool for minimizing losses. With a limit order you set when to buy and when to sell, this way, you can avoid being left with duds. With time, as you experience in the markets grows, you will be able to make better trades with limit orders. This is a strategy that some of the biggest names have mastered. Start early, and you will get good at it with time.
• Have Realistic Profits Targets
Your strategy should not be all about winning. In most of the trades, you will only succeed in about 50% of them. The aim is to ensure that you are making more on successful trades than you are losing. Ensure that you limit the risk of each trade. You will also need to have clear entry and exit strategy that helps you to avoid losing money.