The Secret to Trading in Singapore 2022 – TradeWitheBoys

Apr 18, 2022 | 0 comments

Trading and investing in the stock market have increased dramatically during the pandemic. The demand for day trading and investing has quadrupled from 2019 to 2020. So, what is the secret of trading during the pandemic? 

What’s The Secret To Trading? 

To become a successful trader, there are two things that you need to remember when trading - 

  1. Be Consistent
  2. Always Plan
  3. Educate Yourself

The rookie mistake of new traders is the immediate goal of making money quickly. That’s not how trading works. You must remain patient and set realistic expectations when you trade. 

What Are Some Rules To Follow? 

Rule 1: Draft Out a Trading Plan 

Use a trading plan to list out a set of rules that state a trader’s exit and entry as well as money management quotas and criteria for each purchase. Utilize backtesting as it tests the viability of your trading strategy and this allows you to be confident in moving forward with your plan.

Once you have developed your trading plan, with good results from backtesting, it can be used in real-time. The key is to be consistent and stick to your plan. Doing trading outside of your strategy is a bad move, even if they present positive results. 

Rule 2: Trading is a Business

To become a successful trader, you need to approach trading as if it were a full-time or part-time business - DO NOT treat it like a hobby. New traders may think it earns them passive income with minimal effort, and this is the wrong mindset.

While passive income is a possible outcome of trading, individuals still need to put in the time and effort to generate this cash flow.

Trading is like a business as it too has losses, taxes, expenses, uncertainty, risk, and stress. Therefore, you need to constantly strategize and research how to maximize your trade potential

Rule 3: Constantly Educate Yourself on the Market

Learning never stops as there is always something new to be discovered. Successful traders have to remain focused and push themselves to learn more every day.

Taking note of new trends and understanding the market as a whole - including all of its intricacies - is a lifelong process. Company annual reports, political updates, news and events, and economic trends all have an impact on the market environment

Rule 4: Take Risks Only When You Can Lose

This might be the most important rule of all - Make sure what you have is truly expendable. Do not attempt to take risks when you cannot afford to.

The money that you have in your trading account should be expendable, and if it isn’t, then save it until it is. None of this money should be directed towards important financial decisions such as college tuition or paying the mortgage. Never allow yourself to borrow money from these important obligations in the name of trading.

You have to be consistent in your efforts in trading. Do not think of it as a fun project - take it seriously and plan meticulously. Remember to support your plan with facts and statistics, and remember to monitor the market accordingly. Constantly educate yourself on the various external and internal factors that will have an impact on the market.

If you want to know more trading rules to help you increase your odds of success? Join our community of 600 traders to capitalize on the market by signing up for TWB’s trading courses

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