Powerful Tips for a Beginner

Have interviewed over 100 top-tier traders who have established a solid relationship with siegfund.com. We're happy to share those precious tips with our users!

Tip 1: Be fully aware of the impact of your position. Avoid making market judgments while you have an open position.

Tip 2: Determine your stop loss and profit target before entering a trade. Set stops based on market information, not your account balance. If the cost of a "proper" stop is too high, it's not worth proceeding with the trade.

Tip 3: Avoid adding to a losing position.

Tip 4: Keep in mind that trading systems that work well in an up market might not work in a down market.

Tip 5: Exiting a trade indicates your ability to recognize changing circumstances. Avoid thinking that you can pick a specific price and exit at the market.

Tip 6: Sometimes, due to excessive volatility or lack of liquidity, it's best to refrain from trading.

Tip 7: In a bull market, it's best to avoid selling in a slow market, and in a bear market, it's best to avoid buying in a slow market.

Tip 8: Remember that news is only significant when the market doesn't react in the expected direction.

Tip 9: Sell news that is based on facts and buy news that you hear.

Tip 10: It's a good idea to avoid trading if something is bothering you.

Tip 11: There are three types of markets: up trending, range bound, and down trading. It's important to have a different trading strategy for each.

Tip 12: Risk managers often issue margin call position liquidation orders during the blowout stage of the market, regardless of whether it's going up or down. They don't typically check for overbought or oversold conditions, they simply issue the orders. Make sure you don't stand in the way.

Tip 13: Up market and down market patterns always exist. It's just that one is usually more dominant than the other. In an up market, it's tempting to take sell signals one after another, only to be stopped out repeatedly. Only select trades that align with the trend.

Tip 14:  It's very easy to enter a losing trade.

Tip 15: A failed buy signal is essentially a sell signal, and a failed sell signal is a buy signal.

Tip 16: When everyone else is entering the market, it's time for you to exit.

Tip 17: Never enter a new trade in the direction of a gap, and never let the market pressure you into making a trade.

Tip 18: It can be helpful to review the previous day's market activity to get an idea of what has already happened. This will remind you that yesterday's events have no bearing on what will happen today.

Tip 19: Always enter trades later and exit earlier, as the first and last ticks are usually the most costly.

Tip 20: Scalpers reduce market risk by only holding positions for a few seconds, while day traders minimize risk by holding trades for minutes.

Tip 21: Measure your success by consecutive profitable days, not by individual trades.

Tip 22: Avoid trading when you're not feeling well.

Tip 23: If you've had four consecutive losing trades, don't turn them into eight in a row. Step away from the screen and do something else. Holding onto trades while you're losing is not a wise move.

Tip 24: Never change your trading size unless you have a plan and specific goals. It's helpful to have a plan for reducing your position size when your trading is not performing well or market volume is low.

Tip 25: Sometimes, having too much confidence can be detrimental. Remember that you don't really know anything unless you're a broker. Always expect the unexpected and exit your trade immediately if you feel uneasy.

Tip 26: The easiest way to break a streak of consecutive losses is to take a break from trading for a day.

Tip 27: Don't stop trading when you're on a winning streak.

Tip 28: Flexibility is crucial for successful day trading. Do your research to understand the full potential of both sides of the market. This will allow you to make trades based on the current market conditions.

Tip 29: When the market goes up, acknowledge it, and when it goes down, acknowledge that too. This will help you realize how difficult it is to see what is really happening in front of you when your mind is filled with preconceived notions.

Tip 30: Don't worry about missed opportunities. There will always be another one waiting for you.

Tip 31: Converting a scalp or day trade into a position trade means you didn't properly consider the risks involved in the trade.

Tip 32: There are no secrets in the market. Avoid wasting time looking for them. You'll only find things that no one really cares about.

Tip 33: It's not advisable to seek someone else's opinion, as they likely haven't done as much research as you have.

Tip 34:  If you find yourself whining or getting restless while reading this list, it means you share two common characteristics with many other traders:

A. You've traded long enough to understand that you make mistakes and you're working to overcome them.

B. You've become a part of the market, and you can't leave it. You'll always keep an eye on the market and continue being involved.

When trading with small accounts ($25,000 and under), it's important to trade with the trend. Many beginners look for trades in any direction. While Forex trading allows for bidirectional trading, trading with the trend improves your long-term chances of success.

Having at least two accounts, one real and one demo, is beneficial. Don't stop learning even after you start trading with real money. Continue using the demo account to test alternative trades and strategies. You can shadow your real trades with identical ones in the demo account, but remember to widen your stops in the demo to see if you're being too conservative.

Since there are no leading indicators, stop searching for them. Many companies make money by selling software that claims to predict the future. But if those products really worked, they wouldn't be available to the public.

Examining daily charts is a good practice as it helps with timing your trades. Utilize the four-hour or one-hour charts that are available. Trading at 30- and 15-minute intervals requires a lot of skill.

Instead of trading the time frame offered, trade the pattern instead. Hesitation patterns, breakout patterns, and reversal patterns are common. Train yourself to identify patterns in any time frame.

If you have enough capital, trading two lots is safer than trading just one, and trading three lots is safer than two, and so on. Technical analysis, money management, and emotions play significant roles in trading. One lot alone is not enough to determine these factors when deciding whether to enter or exit a trade. Extreme trading is the most conservative approach when you think about it. Trading at the extremes increases the chances of making the right decisions.

Before taking a position in any currency pair, thoroughly analyze the "Big Five" pairs: euro/dollar, pound/dollar, dollar/yen, Swiss franc/dollar, and euro/yen. There may be something obvious that you missed. Follow the Upside Down Rule: if you can turn a chart upside down and it still looks the same, avoid trading it altogether.

Don't keep track of your profits in your first 20 trades. Instead, focus on the percentage of winning trades. Once you learn to identify market direction, you can enhance profits by adjusting your stops and utilizing multiple trades. This is the time to prioritize effective money management.

Feel free to contact your account manager or email cs@siegfund.com for further information. Remember to bring your Challenge Accepted Form!

‍