‘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

Are NFTs Really The Next Big Thing?
For many, non-fungible tokens (NFTs) look very much like the next big thing. Read more
Is the Regulatory Clampdown on Crypto The Cause of Lower Prices?
Bitcoin and Ethereum, the two flagships of the cryptocurrency market, have recently seen their prices go into a tailspin. Read more

Safest Forest Brokers 2020

Broker Info Best In Customer Satisfaction Score
#1 ForexTime LogoYour capital is at risk Founded: 2011 Global CFD & FX Broker
Number One Broker
#2 BlackBull Markets LogoYour capital is at risk Founded: 2014 Global Forex Broker
Number One Broker
BEST SPREADS Visit broker
#3 Your capital is at risk Founded: 2014 Global Forex & CFD Broker
Number One Broker
Best Trading Conditions Visit broker
#4 Forex Broker eToro Logo67% of CFD traders lose Founded: 2006 Global CFD & FX Broker
Number One Broker
#5 Forex Broker Pepperstone LogoBetween 74-89 % of retail investor accounts lose money when trading CFDs Founded: 2010 Global Forex Broker
Number One Broker
Low minimum deposit Visit broker

    Forex Fraud Certified Brokers

    ATFX Logo
    Exness Small Logo
    IC Markets Logo
    investous logo
    skilling logo
    FXTM Logo
    Forex.com Logo
    IQ Option Logo
    Plus500 Small Logo
    Pepperstone Logo
    BlackBull Markets Logo
    AvaTrade logo
    City Index Logo
    HYCM Logo
    OctaFX Logo
    XM Logo