Whether you’re a beginner or you have been trading online for a while, one thing should always be important to you – increasing your odds of winning a trade. Like every form of investment, online trading comes with sets of risks. And for many people, trading is more about reducing how much you lose than increasing how much you make. But whichever way you see it, your ability to earn more when trading depends on how well you learn to stack the odds in your favor. In other words, how well you increase your probability of winning by reducing your risks. So, do you always feel unlucky when trading? Are you considering this online investment for the first time? Here are some tips to increase your odds when trading online.
Start with a reliable trading platform
If you’re a beginner, you want to get your first steps right by choosing a good and reliable trading platform you can use. Whether it’s an app or a website, you want to make sure, first of all, that the platform is legit. And you can do this by determining if a broker is registered and licensed to operate in your location. You can also read reviews of specific trading platforms you’re interested in to find out how legit they are. For example, if you’re interested in cryptocurrency trading platforms, you can read reviews such as the Bitindex AI, which explores the legitimacy of a specific cryptocurrency trading platform.
Take free online trading courses
Those who earn the most from trading do not do so by chance. Again, if you’re new to the trading world, the last thing you want to do is jump straight onto a platform. It’s important that you equip yourself with the essential tips, tools, resources, strategies, and knowledge you need to make low-risk trades. The more educated you are about a specific trade, the less likely you will make costly rookie moves that increase your risks. Thankfully, tons of free trading courses, resources, and materials are available online. It’s important to take as much time as you need to go through the courses and hone your trading skills before you start. You can also learn about specific techniques for increasing the odds of winning trades.
Think like a professional trader
Here’s one unfortunate fact. Different traders can learn the same trading facts and techniques, yet, one may get positive trading results while the other may lose their money. That means regardless of how many techniques you muster, there are loads of other factors that can lower your risks of a successful trade. In other words, just having a simple trading technique is no guarantee that you’ll make money. And this is where you need to think like a professional trader.
Losing traders and amateurs usually think only about rewards and profits when making a trade, while professionals consider ways to minimize their risks. Professional traders look for high-probability scenarios instead of gambling their money carelessly. They not only follow their trading methods to detail, but they also exercise discipline, pick their trades carefully, and properly manage their trading capital.
Use logic over emotions
This point may seem obvious, but you’ll be surprised by how many traders trade with their emotions, whirling logic out the window. Most losing traders and amateurs make two common mistakes regarding logic over emotions. One, they lack an exit strategy. A previous trade goes very well, and they earn good money. Suddenly, they feel lucky and want to jump into the next trade without knowing when to walk away. The moment you start feeling lucky is the moment disaster strikes. It’s important to plan your exit strategy even before you trade.
Secondly, they don’t know how to determine their stop placements or place stop losses. A stop-loss order is designed to limit your loss after an unfavorable move. And this leads to the next point.
Understand the best time of the market to trade
Many experts recommend trading during the prime time of the market. For example, if you’re trading stocks, the first hour or two after the market opens is considered the most volatile time of the market, as it provides the most opportunities for traders. But it also offers the most potential risks. However, the opening hour is usually considered the best period to trade in stocks, as it offers the biggest moves in the shortest amount of time. The volatility and volume tend to taper off an hour or two after the opening hour.