‘Tis the Season to… Learn to Trade. Top Tips From Experienced Traders

Justin Freeman

Trading tips

Overtrading is widely regarded as one of the main reasons inexperienced traders make a loss rather than a profit. Putting on trades that have poor risk-return ratios or entering into positions at non-optimal price points tilts the odds in favour of the market and against traders.

Applying the wrong strategy to market conditions is another sure way to lose money, and price charts confirm that quiet holiday markets have started. The S&P’s 500 hourly chart highlights how volatility has drained out of the market after a few roller coaster days. Between the close of Wall Street on Wednesday and the opening of the European exchanges on Thursday, futures in the world’s benchmark equity index traded within a 10-point price range.

S&P 500 – Hourly Price Chart – Tight Trading Range

S&P 500 – Hourly Price Chart

Source: IG

Low Market Volatility

A tight sideways trading channel means that momentum trading strategies are currently unlikely to generate gains, but the range is so tight that even scalping strategies could struggle to make a turn. Even the best brokers with the tightest bid-offer spreads tend to offer spreads near to half of one point in the S&P.

Those traders and investors who are looking to use their holiday time to develop their trading skills may be disappointed by the recent turn of events. But there are still ways to build trading skills in preparation for the start of the year. The importance of protecting cash piles means trading performance is currently best improved using a ‘hands-off’ approach.

Online Training Courses

Two of the biggest brokers in the market offer alternative ways to brush up on the markets.

Podcasts: Throughout 2021, mega-broker eToro has expanded its client base to now be more than 20 million account holders. Its client-focused, simple functionality has proved globally popular and is carried over to its offering of research and analysis tools. The eToro podcasts offer market updates for those who want information on the move rather than off a screen. The latest episodes include End of Year Predictions, Crypto Updates and a recap on Key Fundamental Data.

Back-testing: Trade-specific research ideas offered by IG are released on a weekly basis. They’re a useful tool for those looking for new trade ideas and anyone with time to review their back catalogue will find they cover a wide range of markets and approaches. There’s something for everyone, but identifying the best personal fit would put traders in a better position for when activity picks back up in January.

 

eToro: Digest & Invest

IG: Trade Of The Week

 

Crowdsourcing information about scam brokers can help others avoid falling into the traps set by disreputable brokers and you can share your experiences here. If you want to know more about this particular topic or have been scammed by a fraudulent broker, you can also contact us at [email protected]


Justin Freeman

Latest news

Forex vs Crypto: What’s Better For Beginner Traders?
The crypto and forex markets are two of the world’s most popular among investors and traders. Read more
Three Great Technical Analysis Tools for Forex Trading
You don’t have to be very technical minded to make use of technical analysis in your forex trading. Read more

Safest Forex Brokers 2024

Broker Info Best In Customer Satisfaction Score
#1 73% of retail CFD accounts lose money. Founded: 2014 Global Forex & CFD Broker
Number One Broker
Best Trading Conditions Visit broker
4.9
#2 Blackbull LogoYour capital is at risk Founded: 2014 Global Forex Broker
Number One Broker
BEST SPREADS Visit broker
4.8
#3 AvaTrade LogoYour capital is at risk Founded: 2006 Globally regulated broker
Number One Broker
BEST CUSTOMER SUPPORT Visit broker
4.9
#4 plus500 logo81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Founded: 2008 Global CFD Provider
Number One Broker
Best Trading App Visit broker
5
#5 Between 74-89 % of retail investor accounts lose money when trading CFDs Founded: 2010 Global Forex Broker
Number One Broker
Low minimum deposit Visit broker
4.9
#6 Forex Broker eToro Logo76% of CFD traders lose money Founded: 2007 Global CFD & FX Broker
Number One Broker
ALL-INCLUSIVE TRADING PLATFORM Visit broker
4.9
#7 XM LogoYour capital is at risk Founded: 2009, 2015 and 2017 Global Forex Broker
Number One Broker
Low minimum deposit Visit broker
5
#8 FxPro LogoYour capital is at risk Founded: 2006 CFD and Cryptocurrency Broker
Number One Broker
CFD and Cryptocurrency Visit broker

    Forex Fraud Certified Brokers

    AvaTrade logo
    FxPro logo
    BlackBull Logo Small
    FXTM Logo
    XM Logo
    plus500 logo
    eToro Logo
    CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.