5 Trading Tips I Wish I Knew When I First Started!

Here are my 5 top best trading tips which have helped a lot of new traders. I honestly wish someone would have shared these tips with me when I first started trading! 

1. Never buy a stock with MACD below 0 and price trading below the 50 and 200 simple moving averages on the 1Y/1D chart. 

No matter what you think price might do its not worth buying yet, there will be resistance and big pullbacks after each run up before price gets going. You have time!

2. Use 8 and 50EMA on lower timeframes to identify the trend. 

If price is above the 50 the trend is up. If it’s above the 8 and 50 the trend is strong and up. If price is below the 50 the trend is down and if its below both the trend is strong and down. Trade with the trend!

3. Cut losers fast.

Never risk more than 5% on any one trade. Trading is about taking and managing risk, you should never risk too much capital on any one trade or you run the risk of blowing up your account. Small profits add up, go slow until you grow!

4. Let winners run!

Lock in 1/3 of your gains as each target hits and hold the rest to see how far it can go. This will allow you to reduce your risk and maximize return. If you feel like you're missing out, roll options into lower delta at targets to lock some in while letting the winner run more.

5. Never let a winner turn into a loser!

Probably one of the most important. You must learn to take what the market gives you. It owes you nothing and small profits are better than none. Small losses are better than big ones too.

Hope these quick actionable tips help you place smarter trades :)

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