Trading in recent times has improved because of advanced technology. Just like normal trading, automated trading involves creating, buying and selling orders. These orders are computer generated and transferred automatically to a market center or a trading center. The orders are generated by a computer program which is a subset of an algorithm. There are several factors to consider when trading online. These factors can be classified as dos and don’ts during automated trading.
The DO’s of Online Trading
- Premarket preparations – Every successful trader must keep checking market trends before making any sales or buying of orders. The market may change from time to time and traders must check on the right orders before creating or buying them. The liquidity ratio and volatility are very significant during trading. Keep updating your computer software too. You also need to check on the forex exchange rates to be sure of the right amount to trade with. Before you start trading, compare the top 5 best forex robots you can venture into the market.
- Trading plan for the upcoming season – As a trader, you must have a good strategy. The strategy will involve looking at the risks that may be incurred in the market. Take caution about the risks involved and minimize them. Take opportunities in the market and maximize them. This is called a market survey. Many online traders fail during trading because they do not survey the market correctly. You must breakdown technical potential entry and exit orders to enhance your success in the trading period.
- Post-market performance evaluation – Knowing how you have performed in the market will assist you in making good decisions in the future. Taking inventory evaluations after a certain trading period is very essential to the success of any trader. Any trader must ensure that they evaluate their potential in the market and make sure that they are growing.
- Trade what you can lose – In any trading, people are advised to trade what they are ready to lose. Online trading is like forex trading and you have to learn the trends, tricks to be successful. Starting small is very important because it will give you time to learn.
The DON’Ts of Online Trading
- Avoid Emotional Trading – Just like Forex trading, Crypto trading doesn’t need emotions. If you have realized you are not able to make profits just let the trading period go. If you keep trading with emotions, you will end up losing all the coins you have. The best thing to do is to stop trading.
- Do not lose respect for money – Sometimes traders find themselves losing respect for the dollar while trading. This will make the trader get more losses. Just as I said earlier, it is important that you start small, trade with the money you are ready to lose but do not lose respect for money. When a trader forgets the real value for a dollar, they may take unnecessary risks that may lead to losses.
- Do not become complacent – Human mind is created in a very funny way. It gets used to things and making money or losing money in the market is not an exception. Avoid getting used to trading to an extent where losing your money is not a problem to you.
The above dos and don’ts will help you grow your money in the automated trading market. I (Benjamin Gimson) have personally followed these steps. They are very important in ensuring your success in the trading period.