Now I know many retail traders especially the new ones who emerge out of urgency or desperation due to Covid-19 because they lost their job, suffered a wage cut, etc. This unprecedented times have in some way created some inconvenience to your cashflow and you want to try trading/investment to make some extra income.
A few key things that might be helpful here :
1. Take on good quality trades only - by that I mean there are trade opportunities daily that you can find here or anywhere in the Internet. But not all are good and high quality ones with some offering you barely a 10 pip profits. Especially now, where the market is heading for a correction, the volatility will be higher and with a small account, you cannot really have a wider stop loss margin as you would like to.
My advice is to keep on trading on a demo account and practise your skill. Understand why you take this trade and what strategies were you using that help you to score a profit or a loss. Over time, you would find a pattern that you are comfortable with and this foundation may one day gives you the bread and butter you need.
2. Avoid reading too much media news - WHY ?
a) it is contradictory - you will find bullish and bearish views and you may not know who to listen to. That is not the worst. It becomes scary when you are lured into thinking it is going to go a certain way and you take on the trades and it flopped. Or you over-trade because someone posted a trade opportunity and made few hundred pips which looks easy (on hindsight).You may not know how much work or years he or she has taken to build up to that stage. Don't just see what is on the surface.
3. Multiple sources of income
- it is precisely for this reason that you are trying out trading , maybe you had with other sources and it did not work. That is at least my story. Nevertheless, you need to keep on looking out for new ones because over-relying on trading and especially with a small account would give you the unnecessary pressure to trade, even if there is no good trade opportunity. You were coerced to trade, so to speak. And you of course regretted your actions later.........
By having multiple sources of income, you also divide your allowed time to trade to lesser amount and thus it helps you to stay focus. If you have all day and with a small account and you feel lousy cooping up at home, it is easy to fall prey to your own wild imaginations and limiting beliefs and take on risks unnecessarily.
4. Physical and Mental Health
I cannot emphasize enough of this. No matter how good you think the market is or you are on a roll, never ever neglect this part of your life. Have some form of regular exercise. For me, it is running and swimming and now I also do short workouts to strengthen my core muscles as well. In mental health - you need to stay positive and that means having a goal worthy for you to live for. It may be for your family, loved ones, etc. I listen to both the bible and other inspirational words of wisdom by different authors on a daily basis. This helps me to block out as much negativity (some are self-created) as possible.
5. Change your habits - For example, before the Covid-19 , I used to take my breakfast outside, spending around 2-3 dollars each day. With the Covid-19 , I somehow make a switch and eat at home. And with that, I make some healthy adjustments to it, like eating oats and healthy cereals and adding fruits as well. Maybe, in the past, you were too busy to pick a book and read. Now, it is a good time, start with one and you will find it helps you to find some inner peace as well. Reading requires patience too.
Lastly, remember whatever the external circumstances it may be, we are not able to control it. But, what we can control is our own response to it. Some can beaten down so hard that they become depressed, anxious, irritable moods and start to smoke and drink. Never tell yourselves that you do not have a CHOICE. The difference between us humans and the lower rank animals are we are operated not by instinct but we are able to make choices each day.
And the choices we make will determine the kind of actions , positive or negative which yield the same consequences. Once you are aware you are the operant power, use it wisely to your advantage.
A few key things that might be helpful here :
1. Take on good quality trades only - by that I mean there are trade opportunities daily that you can find here or anywhere in the Internet. But not all are good and high quality ones with some offering you barely a 10 pip profits. Especially now, where the market is heading for a correction, the volatility will be higher and with a small account, you cannot really have a wider stop loss margin as you would like to.
My advice is to keep on trading on a demo account and practise your skill. Understand why you take this trade and what strategies were you using that help you to score a profit or a loss. Over time, you would find a pattern that you are comfortable with and this foundation may one day gives you the bread and butter you need.
2. Avoid reading too much media news - WHY ?
a) it is contradictory - you will find bullish and bearish views and you may not know who to listen to. That is not the worst. It becomes scary when you are lured into thinking it is going to go a certain way and you take on the trades and it flopped. Or you over-trade because someone posted a trade opportunity and made few hundred pips which looks easy (on hindsight).You may not know how much work or years he or she has taken to build up to that stage. Don't just see what is on the surface.
3. Multiple sources of income
- it is precisely for this reason that you are trying out trading , maybe you had with other sources and it did not work. That is at least my story. Nevertheless, you need to keep on looking out for new ones because over-relying on trading and especially with a small account would give you the unnecessary pressure to trade, even if there is no good trade opportunity. You were coerced to trade, so to speak. And you of course regretted your actions later.........
By having multiple sources of income, you also divide your allowed time to trade to lesser amount and thus it helps you to stay focus. If you have all day and with a small account and you feel lousy cooping up at home, it is easy to fall prey to your own wild imaginations and limiting beliefs and take on risks unnecessarily.
4. Physical and Mental Health
I cannot emphasize enough of this. No matter how good you think the market is or you are on a roll, never ever neglect this part of your life. Have some form of regular exercise. For me, it is running and swimming and now I also do short workouts to strengthen my core muscles as well. In mental health - you need to stay positive and that means having a goal worthy for you to live for. It may be for your family, loved ones, etc. I listen to both the bible and other inspirational words of wisdom by different authors on a daily basis. This helps me to block out as much negativity (some are self-created) as possible.
5. Change your habits - For example, before the Covid-19 , I used to take my breakfast outside, spending around 2-3 dollars each day. With the Covid-19 , I somehow make a switch and eat at home. And with that, I make some healthy adjustments to it, like eating oats and healthy cereals and adding fruits as well. Maybe, in the past, you were too busy to pick a book and read. Now, it is a good time, start with one and you will find it helps you to find some inner peace as well. Reading requires patience too.
Lastly, remember whatever the external circumstances it may be, we are not able to control it. But, what we can control is our own response to it. Some can beaten down so hard that they become depressed, anxious, irritable moods and start to smoke and drink. Never tell yourselves that you do not have a CHOICE. The difference between us humans and the lower rank animals are we are operated not by instinct but we are able to make choices each day.
And the choices we make will determine the kind of actions , positive or negative which yield the same consequences. Once you are aware you are the operant power, use it wisely to your advantage.