Member Article

5 ways to dramatically increase your trading profits

Whether it is Forex trading or stock exchange, the trading industry is currently enjoying a phenomenal phase of success. But why is that? Why is the trading industry attracting so many new eager and talented traders to the court? The answer is simple, because stock trading or forex trading is one of the best ways to earn profits without doing hard labor. So it makes sense to see a plethora of people diverting their attention towards trading in the stock market to make a living for themselves. But as the case is for every walk of life, you need to learn more about something before diving into it head on so that you don’t collapse, and similarly you need to learn more about Forex trading or stock exchange, before you decide to try your luck out, so that you can maximize your profits and minimize your losses. In this regard, we’ve prepared a list of ways that every trader should follow to dramatically increase their trading profits in the industry, and without further ado, let’s take a look at them.

Quality above quantity:

Most newbies, when they start out in the trading market, think about trading a lot of stocks to maximize their financial gain. But this is the wrong way to go, because it is proven time and time again from the experiences of these famous traders, that the stock market, be it Forex, or stock exchange, only focuses on the quality of stocks, rather than the quantity. If you know how to trade, and if your strategy is spot on, LESS is more, there are no two ways about it.

Figure out the best time to trade:

You might find it hard to believe, but according to a journal published by the experts at Wall Street, all the top traders, trade stocks in a specific 5 hour slot. Which means, that in every country of the world, there is a different 5 hour slot, when the activity in the market is through the roof. This shows, that if you can figure out the same five hour period in your country, you can maximize your gains by investing the least.

Keeping yourself abreast with the trends:

The only thing constant about the markets, be it Forex or stock, is CHANGE. Having said that, a budding trader should always keep in mind that to prosper in the field of stock trading, they should always think about the present, keeping up with the latest happenings and related up to date info. The trends in such markets change drastically and regularly, it might surprise you to see them change so frequently and so abruptly, so it is always a good idea to keep tabs on that and stay two steps ahead of the curve.

Forex lets you invest little for more:

The one spectacular thing about the Forex market, which makes it different from all the other trade markets, is the fact that you can start very low. This means, the first investment you make, to kick start your campaign, can be as little as $300, as compared to the thousands of dollars you have to start with in other markets. This is considerably good for people who want to start off with a limited sum to see if they are any good.

Never put all eggs in one basket:

Warren Buffet is considered the king of investment in and around Wall Street, and if he has any advice for budding traders, it is this, “Never put all your eggs in one basket”. This means, never put all your money in one stock, never invest it all on one trade. What you need to do is develop different channels of investment streams to maximize your profits as a trader, this is a particularly good advice coming from the world’s finest trader.

This was posted in Bdaily's Members' News section by Deborah Belford .