CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.00% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Improve fitness, quit a bad habit, or achieve new personal milestones in trading, the New Year is a time for setting goals. However, for exceptional trading experiences, you must follow through with your resolutions for the rest of the year. While emerging markets catalyse positive change, advanced economies are set to grow at a slower pace in 2025. As structural shifts drive market moves globally, your trading strategy must adapt to the volatility. If embarking on a journey of satisfactory trading is your goal for 2025, consider adding the following trading resolutions to your list.
You know that education is quintessential to improving your trading strategy, decisions and experiences. Have you been meaning to read that trading book or learn about that forex pair for a while now? Start by clearly defining your learning goals for the year. You may include:
The idea here is to clearly define what you want to learn and set up a timeline for doing so. Add these to your monthly/weekly planner right away. This way you split the task of getting trading education into manageable activities. Go ahead, create a learning schedule and set aside some time every week to achieve your learning goals in 2025.
Beginners often make the mistake of using up too much of their capital early in the year. Therefore, it is important to understand how much capital you can use for a single trade. Set realistic trading goals and develop practical trading strategies. While you have a fixed trading budget, the following can help you build a refined trading strategy:
You might realise that sticking to your New Year resolutions isn’t your forte. After all, that gym membership from the beginning of 2024 might have gone unused for a long time. Therefore, make sure that the trading plan you develop is sticky. Including all details in the trading plan turns decision-making into an objective activity, rather than a subjective one. Wondering how? Here goes:
Build a strong trading psyche to avoid making impulsive trading decisions. Building emotional discipline requires:
Diversification is key to maintaining portfolio performance during periods of market turbulence. A well-diversified trading portfolio includes:
These should include negatively correlated and non-correlated assets. If that seems a bit difficult, you can consider contracts for difference (CFDs). CFDs allow you to explore a wide variety of markets, including forex, indices, equities and commodities, such as precious metals and oil. CFDs also allow you to hedge a position by opening another of a smaller size in the opposite direction. However, make sure you manage the risks associated with margin trading.
Overtrading and under-trading are equally harmful. A trading schedule can help you maintain trading consistency without staying at it longer than necessary. It helps pace your trading to meet your financial goals. Start with smaller positions of shorter durations and slowly build to larger and longer ones. Through the process, tweak your trading strategy as market conditions change. Whether it is the order size or trading frequency, make sure it aligns with your trading goals.
While technical analysis is critical, it cannot guarantee trading success. Well-informed decisions mean that you also stay updated with:
These events impact the markets strongly in the short term and often build trader sentiment for the medium and long term. For instance, speculations regarding an interest rate cut by the Fed kept the US dollar under pressure from December 2023 through 2024, till the Fed finally cut rates in September. Staying prepared to make event-based decisions is crucial for effective trading. Turn on notifications for price movements in your chosen instruments and alerts for events that impact these assets to stay informed and tweak your trading strategy as necessary.
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