Trading is a full-time job. You have to keep up with news, speculation, create a risk management plan, re-evaluate every day, and be ready to buy or sell at the drop of a hat.
For new traders, this can all be a bit overwhelming. Even veteran traders need to learn every single day in order to stay on top of their game. This is where the words of experts come into play.
There’s no need to invent the wheel when others have already done so. We talked to investing pro and head trader at WealthPress, Roger Scott in order to learn how he’s stayed at the top of the business for so long. Then we compiled a list of his top tips.
Roger Scott says the first thing every trader should learn is how to stay organized. Create a tier list of stocks you have and stocks you might want.
Make this a detailed list, and assign attributes and notes to each stock on your lists. Write down what would make you buy them, what would make you sell them, what your target prices are, etc.
Making this list will help you understand your stocks more, as well as yourself. It’ll help you realize your own risk tolerance and what kind of a trader you are.
Have a Strict Budget and Stick to it
This is important. It may be very inticing to make one more trade and overstep your budget by just a little bit. But Roger Scott stands strong on the fact that you must have a hard line and never cross it.
No matter how good of a trade you think you may be able to make, it will have to wait. If it’s that good, then sell something else or forego another trade in order to fit it into your budget. The important part is to maintain discipline and stick to your pre defined budget.
Be Realistic and Remember the Big Picture
Most traders will only win 50 – 60% of their trades. This is just how the business works.
The key to being a successful trader is to make sure that you are making more money off of successful trades than you are losing on failures. Be realistic on your trades, don’t get greedy, and remember it is a marathon not a race.
Do not Succumb to FOMO
As the head trader at WealthPress, Roger Scott maintains that FOMO (the Fear of Missing Out) is the trader’s greatest threat. So many people have thrown money down the drain trying to board a train that has already left the station.
Always do your research, no matter what everyone else in the world is doing. Do not follow hype, follow facts and numbers.
It is okay to miss an opportunity, there will always be more. That’s why people like Roger Scott have been trading for over 20 years, because there are always opportunities to earn money.
Use Logic not Emotions
Playing off of the last piece of advice, you must trade on facts. Do not succumb to fear, and do not get greedy. If the reason you bought a stock remains the same, don’t sell at the first sign of red.
This only applies if you bought the stock for a good reason based off of numbers and facts. This is why it’s so important to do your research and treat trading like a full-time job so that you have every edge you can possibly get when it comes to making money as a trader.