Being profitable is the goal that every TRADER wants to reach one day.
Being profitable means that, in percentages, you earn more than you invest. The closer you get to 100% profitability, the better use you will be giving your money. And as much as we would like to give it to you, there is no trick that will make you have a high level of profitability, but there are tips that will help you improve your results. And as you know, every step to improvement counts.
The first way to improve your profitability is to improve your PSYCHOLOGY.
What is Psychotrading?
PsychoTrading is the science that studies the emotions and behavior of traders when operating in the market. It aims to make traders aware that they have the ability to manage their business consistently, so that they are not affected by their emotions before, during and after their investments.
Some people see trading as a casino, where you make a bet and you can win or lose. Depending on the case, there are traders who feel a great euphoria after winning the operation of their lives, or the opposite extreme when losing it. And this is not healthy behavior, nor does it help us improve our profits. The reality is that our task, as professionals, is to generate profits through probability data, not to win a bet that is based on nothing. It’s nice to feel a stroke of luck, but this is rather an illusion that takes us away from what really matters: us.
To improve this aspect, we suggest you ask yourself these questions when investing in an asset: Do I have a strategy? Do I know this market? Am I getting carried away with enthusiasm? This will make you reflect on whether or not you should risk that amount you are about to invest. If you don’t know the market, go away and study it first for several weeks on a DEMO account.
Another important question is whether you are trading at a time that you feel comfortable with. Some traders trade in the morning because they feel fresher, others prefer to study the market in the morning and trade at noon. This will depend on you.
The second way to improve your profitability is COPY TRADING.
This trading technique is based on copying professional traders with a high level of profitability. There are platforms like Naga that allow you to see their percentage of profits and the markets in which they operate, so you can assess if you are interested in copying their operations.
If, for example, you copy a trader who has a 95% return, you can program the operations to copy 10% of the amounts he invests, within a take profit and a stop loss.
We explain what it consists of here: What Copy Trading consists of
And finally, another option that we really like to improve profitability is SOCIAL TRADING.
This technique is very similar to copy trading, with the difference that you do not automatically copy, but you can read other people’s trades and their opinions on them, just like you would on a social network. In this way you can learn a lot about a market that you did not know, or be able to value investments without having to spend all the time it would normally require.
We explain this trading technique in more detail here: What is Social Trading
As always, we hope we have helped you a little more to improve your operations. May the market be with you!