No matter what they say, trading is a hard hobby. There is no single best strategy that suits everyone. And there is no one solution that can turn you into a trading guru in the blink of an eye. In order to become an expert, you have to spend years and dedicate a lot of time to this pursuit. And still, many fail. Why is it so complicated and how do you get over all the complexities?

Changing markets

Markets are ever-changing and ever evolving, it is part of their nature. Odds are, you will never witness identical market conditions more than once. The reason for this is the sheer number of different factors that influence the performance of the assets you trade in. The price of an asset is influenced by hundreds or thousands of many different factors. Every time you look at a price chart, the conditions are different. International markets are a complex financial system.

How does one address this issue? As mentioned previously, markets aren’t static, and market conditions are seldom identical. Yet, there may be patterns that repeat themselves. These patterns might be used as signals but, of course, should be double checked for confirmation.

Human factor

Human nature plays a huge role in trading. After all, it is we, humans, that open and close deals, buy and sell assets from and to each other. There are several ways to cope with this. As a small investor, you cannot influence the behavior of others, but you can change your own attitudes.

This is something you have probably already heard of. All you have to do is minimize the human factor in your own trading. For this purpose, try to get rid of emotions in your decision process as they can negatively affect your performance. Trade according to your trading strategy, not a gut feeling, and you will be able to manage the unnecessary risks associated with human factors.

Excess of information

At this point, the amount of information explaining how the market works has become a problem. Many times, it is impossible for a novice trader to navigate in the sea of trading-related knowledge.

After all, there is so much you can learn about trading that it is sometimes easy to get lost. From books to articles and guides — you have to learn hundreds of things before you even grasp the basics of trading. When you move on to a more advanced level, knowledge itself starts not being enough, and you will require extensive first-hand experience. As if that wasn’t bad enough, there are countless different ways to analyze the market and predict the future of the asset.

What is a possible solution to this problem? Focus on one asset type, one time period and one strategy at a time. It is easier to get lost when you lack a clear picture. Different assets are handled differently and need different strategies. Different time frames use different analysis. Different tools provide different trading signals. Therefore, you might want to choose one in each category and master it before jumping to something else.

Conclusion

The overall complex nature of the financial markets is a result of its many moving parts being complex. Having covered three of them, it should be easier to work with complex systems when you break them down into easily digestible pieces.

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The common misconception amongst regular people is that becoming a trader is easy. All you need is to open an account with a leading brokerage and start trading your assets of choice. In reality, things aren’t so easy especially if you want to become a good trader, who makes a fulltime living off the profits made on the market. Not only does it require a lot of effort but many missteps to learn. So, the question is what do you have to do to become a good trader?

IQ Options which is one of the leading online brokerages for a variety of assets, knows a lot about trading and their advice to become successful is to learn. That same advice is echoed by The Market Wizards’ author Jack Schwager, who says that a trader is someone who isn’t into a particular asset for a long time. A trader goes init for the short term, makes a profit and hops on to another asset.

What Schwager is alluding to is that traders will trade both when markets are bearish and bullish. Also, traders change their position often compared to someone who is a long-term investor. A good instance of a long-term investor is Warren Buffet. So, traders need to continue making good decisions unlike an investor who can say:

I’ll put a third of my capital in equities, then a third in bonds and the other half into cryptocurrencies, and hold that for the next decade.

Traders don’t do this!

The big mistake many novice traders make is thinking that there is one winning strategy used by seasoned traders. When in fact that’s not the case. No one strategy works all the time. Even if there was a strategy theoretically speaking, if everyone was using that strategy, do you think it will continue to work?

So, the question is what trading strategy should be used? Every trader is different and so the answer will vary. It depends on your personality, your experience as a trader and trading style. Jim Rogers for instance, relies heavily on fundamental analysis. Though other traders like Martin Schwartz will focus on technical analysis.

The choice of what strategy you use will also depend on what assets you are looking to trade. Do you want to trade indices, stocks, currencies, or crypto? Each one is traded differently. You also need to factor in long-term vs. Short term.

It is up to you to find a strategy that works best. It is, after all, a significant part of becoming a profitable trader.

Once a strategy has been fleshed out, the next step is risk management, which is the second most important thing for any day trader. Sure, a brilliant trading strategy will make you money but it isn’t complete if you want to trade regularly. Risk management ensures that at times when you’re not making money, those losing trades aren’t blowing away your capital. So, it isn’t hard to see just how important risk management is for traders. Not to mention self-discipline helps to prevent impulsive decisions.

The final on your list to becoming a successful day trader is flexibility. Global markets don’t have a single pattern or trend, which means that you want to adapt and be as flexible as possible. That means you’ll be bullish one minute and then pivot to becoming bearish the next. You will want to change your mind as the situation changes and that means not using a single strategy that is outdated for that moment. That is a quality a winning trader will need to have.

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Many people who are considering trading or are new to it need to understand that they can make a lot of mistakes. We know that mistake costs traders money, so every mistake we can save you from will help you save if not make money. In this article, we’ll discuss 7 mistakes to avoid as a novice trader.

Investing More Money Than What You Otherwise Can Afford to Lose

Let’s face it; trading has a very high risk associated with it. So, every trader will lose money a couple of times each month. The key is knowing how to manage your risk, and one way of doing that is not invest more than you can afford to lose.

Sure being positive is good, but don’t be unrealistic. Make sure to track your losses as that will make you less prone to risky behavior. However, believing in luck and anticipating that you’ll win is highly risky.

The ’All-In’ Approach

The best and fastest way to watch your capital disappear is to put it all in one stock, asset, or currency pair. You shouldn’t be banking on lady luck to make a profit as a trader. Each time you go all in, there is a considerable risk associated with it i.e., you can lose it all. It goes without saying nobody can win all their deals. So, if you continue to use this approach, you will lose all your capital.

The Wrong Trading Time Frame

According to trading fundamentals, using a 5-minute graph is detrimental. Many basic factors can take several years to unfold. You need to consider GDP growth, inflation, and the political situation all of which can’t be factored into each 5-minute interval. So, your timing is critical. If you are a minute too fast or too slow, an opportunity will be missed and you may lose money.

Not Having a Trading Strategy

Using your emotions and gut is a bad idea. Only a handful of traders have been successful using only their gut and emotions. As a trader, you are tempted to believe in luck when trading and so there is a chance you will rationalize your decision and then confuse it for a gut feeling. All you are experiencing is the desire to win on that trade. Again as mentioned above, you are trading and not gambling, so your approach needs to be different.

Not Putting a Stop-Loss in Place

We’ve seen that many traders don’t use the stop-loss feature on their trading platform. Not doing so could mean that you end up losing more money than you should because the trade didn’t auto close where it should have to prevent the hemorrhaging of your investment. The stop-loss feature will automatically close a position if a trade dips below a certain threshold.

Changing The Strategy Too Frequently

Sure, you should switch to another trading strategy when it stops working for you. However, what is your definition of a sub-par strategy? Some may define it as a strategy that fails for 5 consecutive times, but for others, it may be fewer times or other factors. That said, going through a losing streak is a fundamental part of trading and it will happen to everyone. So, even the best strategy will have its days.

Correlated Assets

Many novice traders may not know this, which makes it very dangerous. Sure, you might know about diversification to mitigate risks, i.e. buying and selling a myriad of assets instead of investing in just one. Though what you might be overlooking is that even though some assets appear to be different, they are correlated. For instance, the USD/JPY and EUR/USD currency fair behave in a very similar fashion because of the common dominator i.e. USD. So, your goal of diversification should be to choose independent assets.

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Now for many people being a successful daytrader is a dream come true. It is amongst the most popular trading strategies for individual investors. All daytraders make money off the regular fluctuations on exchange rates and will use a multiplier to increase their ability to make money exponentially. Traders will trade stocks, currency pairs and assets regularly.

The important thing to keep in mind is that even using the best trading strategy can end up delivering subpar results if it isn’t used correctly. At IQ Options, our emphasis on getting things right, and that’s why we’ve put together five tips to improve your skills as a day trader.

What Type of Person are You?

Don’t worry about currency pairs, technical indicators and the market in general, until you are capable of knowing yourself. As a trader, you need to be aware as to how much of a risk tolerance you have, and the best-preferred method of trading based on that. Professional traders use different methods of trading that suit their style, so what will work for one trader will not for another.

It is important to remember that you’re not trading to make that one trade profitable, but instead, make a stable income over time. That’s where your personality comes into the picture. Having goals and priorities is what will help. Think about what you want to achieve as a day trader? Try to see the goals in your mind’s eye and the best way to get there. Now take one step back and try to redo everything.

Getting Down to the Basics

Now that you’ve completed the first step, the next one is to understand the basics of Forex. Don’t start with the expert level stuff but instead start simple. Only start trading currency pairs and use tools that you know. There is a great deal of forex-related material available and it is easy to get lost in it all. So, we recommend that you don’t jump from one source to the other as it will leave you disoriented and confused. Keep your sources limited.

Don’t Bet Against the Market

You shouldn’t try doing that until you fully understand what is going on. People who believe they can outsmart the market often get it wrong. Most will lose their working capital. Our advice is to go with the market, move with strong market trends. Not only is this strategy sustainable but less stressful and you’re not going to get as emotionally involved.

Ongoing Learning

Trading isn’t without risks. You like everyone else hates losing money, but traders will stake their capital on a deal without even wholly understanding the terms. However, you don’t want to do that. It is called trading for a reason and not gambling. So, you shouldn’t only rely on luck.

Trading in the currency market is all about weighing the risks and probabilities. You can only win with an education, but you’ll have to educate yourself about all the risks and how to manage it. Plus, you have to learn how to increase your chances of winning.

No Magic Pill

As much as scammers would like you to believe there is no trick to turn $50 into billions during a single trading day. Like any occupation, it requires hard work, educating yourself and being patient. You should be ready to lose money, and you will lose money during the initial trading phase.

Stay away from so-called ultimate tools, robots and strategies that promise to make you rich as you sleep. Some might even be effective for the first few days but most aren’t. Your goal should be to boost your ability to trade and make a profit not taking shortcuts.

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Talk to any trader, and we can bet that they are searching for the holy grail of success. Seasoned traders have grown to figure out that there isn’t a holy grail or secret, so to speak. A successful trader plans and knows which tools are best suited for the job.

A trading journal happens to be the most powerful tool in any trader’s arsenal. It can help a good trader become better. A journal, as you might have already guessed, is a written record of what is happening during a given trading day. You should add essential factors like the day’s market conditions, sizes of each trade, prices, expiration times, success rate, and your own emotions. Make sure to customize the journal entries so that they fit your style of trading.

Sure, some people may balk at the thought of keeping a trading journal because, after all, it is tedious. That said, recording your trades will help to keep you consistent and accountable, which means disciplined, and that is what pays off in the long-run. Let’s look into other reasons why a trading journal can make you a successful trader.

Helps You Identify Market Patterns and Trends

You can use the notes to analyze which of your trading strategies are working and which aren’t. You should take note of the various charts you’re using, also the patterns you’re watching as well as how various events are impacting your trading abilities. What this will do is help recognize the mistakes you might be making, which are costing you a lot of money.

For instance, you’d probably come to the realization that you’re exiting trades too hastily which is costing you money. You could also be setting the wrong limits and also in the wrong places. You could also be falling victim to incorrect signals. So, primarily a journal will help prevent you from repeating those mistakes.

Hone Your Trading Technique

When you have a detailed record of all the past trades, it allows you to identify weaknesses. Remarking about how you feel each day is a good idea because it can help you realize if your decisions are driven by emotion, which is hurting the trade. A journal will reveal what type of trader you are and what needs to be focused on to improve your skills.

Keep an Eye on Progress

If you have been a trader for a very long time, it can be hard to gauge success. When you write down everything, i.e. your goals, it helps you keep things on track. It also helps to keep you motivated and inspired by looking back at where you started from and how far you’ve come. Not to mention that having a trading journal will help you keep an eye on your growth as a trader, which in turn will instill more confidence.

As you can see, there are numerous advantages to having a trading journal. However, these are just the tip of the iceberg. Keeping a trading journal does not have to be tedious, it is up to you how it is made fun so as long as you keep track of all the useful stuff. So, what are you waiting for? The time to start keeping a journal is right now.

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A professional trader needs to be attentive, alert, have a strategy and knowledge, all of which are crucial to them being able to make lucrative trades. That said it is just as essential to be a pro when it comes to understanding and leveraging all the features of a platform. Just about any trader will tell you that knowing how to make the most out of the tools at your disposal has a mega impact on the outcome and allows more control. That’s why we’ll examine just how well you know the platform with our quick checklist below.

Here are a couple of features we are pretty sure you might have missed.

1. Use balance

Now, this feature enables you to keep a position open. So, you can keep the deal open even after it has gone beyond the otherwise autoclose level. The feature is of particular importance for a trader who might have run out of money for the deal but believes that the price may soon be reversed and their trade will be in the green. Enabling this option allows them to hold on to the trade. The deal is maintained by using up funds from the balance if it happens to go in the opposite direction. If the price as expected by the trader goes in the right direction, the funds which are deducted from the balance are returned.

2. Trailing stop

Using this feature, traders are able to secure a given amount in profit and absorb a certain amount of loss once a trade is in the green. Once a Stop Loss level is set it then follows that price of the asset if it goes in the direction you want it. However, if the price goes in the opposite direction of what is predicted it will not move. For instance if you are a forex trader who just purchased the EUR/USD currency pair and predict that the price will rise and you set a Trailing Stop Loss of just 50%. So, if the currency pair price rises so will the Stop Loss Level, in the desired direction.

3. Purchase At

Using these feature traders can execute a trade but with conditions that are favorable to them as a pending order. The feature can be used by setting the investment amount, the Stop Loss, Take Profit levels and the multiplier. After all of these are set, then just set the price of the asset for which you want to open a position and then decide the position you are opening. You can choose a short or a long position and click on either the Sell or the Buy button as required.

Once you have followed these steps a confirmation will be shown that your order is now created. Once the asset reaches the level you predicted, that will trigger the order, and a deal is automatically opened.

4. Market analysis

Staying on top of the latest market trends does not require that you leave your desk or even the trade room. You can practically become an analysis professional by finding information about the very best assets, glance at updated forex and crypto calendars while using all of that information to forecast a winning trade. No longer do you need to open multiple tabs as now you have all the required information at your disposal allowing you to open a trade and choose an asset within seconds with the click of your mouse. So, now you have everything needed in one place with indicators and fundamental analysis all tied up into one package.

You are more than welcome to take these features for a spin. We are pretty sure they will become a valuable addition to your trading arsenal.

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We have exciting news for everyone, which starts with the fact that IQ Option has introduced price alerts, added Lyft stock, and seven new cannabis assets. So, for people who want to stay updated of the latest price movements or would like to watch as their cannabis stocks rise, the platform has you covered. But that’s not all we learned.

In a bid to continue being the top award-winning broker, IQ Option has always strived to stay on top of the trading industry by offering traders the ultimate experience.

Do you want to know the best price at which to trade an asset? Knowing when to act is the most important aspect of being a successful trader regardless of whether it is to buy or sell. But the challenge is knowing when the asset has hit its threshold price.

The price alerts feature allows traders to choose when they are notified about the assets reaching a certain pricing or rate. So, you don’t need to constantly and manually monitor the financial news or always keep an eye on the trends as you’re alerted automatically. Nobody wants to spend their time looking at charts, especially when they have multiple assets to monitor, which is why this feature is so handy.

Using price alerts traders can track multiple assets at the same time. They will also receive an automatic notification when the asset they are tracking has reached a certain price. The feature is easy to use, just select an asset and click the Create Alert button, then set the price at which you would like to be notified.

The Addition of Cannabis Assets, 1 ETF and 6 Stocks

Cannabis is being gradually legalized in many countries across the world, and so it is fair that the product be turned into an opportunity for online traders. IQ Option has been very shrewd in this regard by adding seven new cannabis assets to the trading platform in the form of 1 ETF and 6 stocks.

You can now trade the following cannabis assets via the IQ Option platform:

• Anheuser-Busch Inbev-Spn Adr
• Canopy Growth Corp
• GW Pharmaceuticals – Adr
• Aurora Cannabis Inc
• Tilray Inc-Class 2 Common
• Cronos Group Inc
• Etfmg Alternative Harvest

If you are a trader, we would strongly advise that you pick up a few cannabis stocks via IQ Option.

The New Stock: Lyft

Lyft recently went public, and IQ Option has finally introduced its stock to the platform.

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IQ Option has started the new year with a bang! Offering four new digital options for assets in addition to 20 indicators that are now part of the growing platform. The service has reiterated and affirmed to users across the world that they offer the best trading experience and are committed to ensuring that is what their users get. That means you can continue to expect new updates catering to investors of all types.

We have listed all their new additions below.

The Introduction of 4 New Digital Assets

IQ Option continues to pay very close attention to all the recent trends, and because of the growing popularity of digital options, they have added four new assets to the platform. Now traders can trade crude oil, WTI, silver, and gold in addition to everything else that was previously available.

Now if you’re not up to date on all the recent buzz surrounding digital options and are wondering what all this fuss is all about then hear this: Traders stand to make 900% in profit each time they successfully trade digital options successfully, with a 1 to 5-minute expiration duration. You also have the possibility to sell before the trade has expired. That’s why these assets were well received with traders now having four extra options from which to choose.

The Addition of 20 New Indicators

Now, this is a major addition to an already large platform. Traders have the ability to make the most out of the trades, which will significantly improve their profitability by improving technical analysis.

IQ Option Indicators

Anyone who has used indicators also knows that there are several categories. IQ Options has made a couple of additions to each category of indicator.

We have listed all the new indicators which are now available in their respective category.

Trend

• Mass Index
• McGinley Dynamic
• Aroon

Volume

• Net Volume
• Weis Wave Volume
• Volume Oscillator

Volatility

• Average True Range
• Donchian Channels
• Chaikin Volatility

Momentum

• Balance of Power
• True Strength Index
• Center of Gravity
• Aroon Oscillator
• Williams’ Percent Range
• Woodies CCI
• Klinger Oscillator

Moving Averages

• Kaufman’s Adaptive Moving Average
• Least Squares Moving Average
• Arnaud Legoux Moving Average
• Rainbow Moving Average

Other

• Chande Kroll Stop
• Coppock Curve

IQ Option’s above-mentioned additions to the platform come with the promise of adding more in the near future. The company has continued to prove the reason for their popularity and why traders consider them one of the leading brokers.

We strongly advise that you keep an eye out for more updates and posts on our website so that you are the first to know about the latest changes to the IQ Option Platform. If you’re still not using the IQ Option platform, we suggest that you get started now that things are hot and heating up!

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IQ Option has updated their platform, by adding 12 brand-new FX Options assets, 2 new trading tools and expanding their indicator collection to a total of 79 indicators. The award-winning broker proves to be on top of their game once again, by paying close attention to customers’ trading favorites and interests to truly offer them the “ultimate trading experience”.

Check out details of all recent additions below.

IQ Option has added the following FX Options assets to their infamous platform:

• Gold
• Silver
• Crude Oil Brent
• Crude Oil WTI
• GER 30
• SP 35
• FR 40
• UK 100
• US 30
• US 100
• US 500
• NZD/USD

FX Options are a new way to trade forex that has proven to be increasingly popular among investors due to their unlimited return potential. Worried about losses? With FX Options, you can only lose as much as you invest in the deal, whereas the amount you can gain is unlimited.

With attractive features like a 1-hour expiration time, the ability to both adjust your strike price and close a position before it reaches maturity, FX Options are all that’s “hot” right now at IQ Option. The minimum investment amount to start trading FX Options is €25 or $30. To find out all you need to know about trading FX Options and how they work, read IQ Option’s FX Options blog post.

Asset Profile and Market Analysis

Besides the assets outlined above, IQ Option has added 2 brand-new tools to their platform: Asset profile and Market Analysis.

Asset profile, originally known as Assets section has now become an extra feature on the IQ Option platform. Similar to the section on the website, Asset profile shows an overview of any given asset, along with its real-time trading conditions. All traders can gain access to this new feature by simply clicking on the info button highlighted right below.

IQ Option new tools

The second tool added to the IQ Option platform is Market Analysis. This tool gives investors a clear view of the financial market, including all the latest news from only trusted sources that are conveniently sorted within the following categories:

• Forex calendar
• Smart newsfeed
• Earnings calendar
• Crypto calendar

Now, thanks to these brand-new features, traders can receive and be aware of all the latest market opportunities without even leaving the IQ Option platform. Convenience is key when it comes to IQ Option.

Technical Indicators

Last but not least, IQ Option has expanded their indicator collection by adding even more technical indicators to their platform. Investors will now have a total of 79 indicators to use.

With all these exciting new additions, what’s not to love about IQ Option?

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IQ Option will soon be furnished with yet another attractive FX Options feature. The new trading instrument will be yet another on the platform that will empower traders by combining all the advantages of Forex trading with the appeal associated with options trading.

It is expected to be a highly profitable hybrid. The other major news is that the newly created FX Options feature will be offered to EEA customers as well which will allow them to trade short-term forex.

The idea behind the new instrument is to make things simple on the trading platform, while at the same time giving control of the risk factor to the customer. So, they can set what is acceptable. You can watch the video for more details.

Advantages of FX Options:

• Traders will benefit from an unlimited number of returns which mainly depends on the price of assets changing
• If there is a loss investor will not end up losing all the capital invested. They will be able to choose the risk factor by defining what amount they want to trade
  and selecting a strike price. So, they can get the desired return when the asset expires
• Trading will be more comfortable than with using CFDs since you don’t have to bother about leverage, pips, and margins, etc.

The way these payouts work is pretty simple. The customer defines the price at which they would be willing to exchange one currency for the next one. The payout will vary depending on the difference in price between each of the currencies. Also, the starting and end point of the currency value will be taken into consideration. So, the larger the price difference between the currencies the more significant will be your risk but so will be the payout if the odds are favorable.

The feature, in essence, gives the control over to customers who can then manage their risk. However, there are still risks which can’t be controlled like that of the market. Though being able to choose the risk level will help clients minimize their losses while maximizing gains.

At the moment FX Options is available in up to 14 currencies. The expiration times start from a minute and are right up to 5 minutes. The other good thing as mentioned above is that clients can’t lose more money than they invest.

As of late easymarkets has launched their easyTrade that uses a similar concept. Though we think that IQ Options’ implementation of the concept is much better and easier to use.

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