4 Tips For The Modern Trader

A lot of people talk about trading and investing in stocks as if it’s some age-old practice to which there are understood methods and patterns. To an extent, this is accurate; there are certain patterns that can be recognized over time, and methods learned years ago can still be useful and effective today. But the broader truth is that the markets change over time. In a matter of years, new industries can be at the forefront of investor focus, stock charts can change significantly and, perhaps most notably, the ways in which we conduct trades can be disrupted and adapted.

For all these reasons, it’s important for any modern day trader to understand some of the latest factors that can go into sound investing decisions in addition to the advantages that we have in 2015.


1. Practice With A Simulator

This is one of the best advantages out there for students or young professionals who may be looking to do some trading for the first time. Really, millennials are the first generation who have the ability to learn trading through a simulator app. While there have been various tools and methods for “fake” stock trading over the years, there is now a range of apps designed to help users conduct trades based on real movement in the stock markets, with no financial risk. There’s no better way to practice and to learn your own trading preferences, and it’s something every new trader should experiment with before putting real money at risk.

2. Record Your System

Some of the most common and vital advice out there for traders is to have a system—a code of rules and tendencies to follow absolutely while making trades. For example, this system might include percentage-based boundaries for your trades, setting up higher and lower limits at which you’ll either cash out or cut your losses. Another common feature in trader systems is a determination not to let emotion play a role. Whatever the case, use modern tools to keep track of your system and record your trades and tendencies. Again, there are a lot of apps out there that can help to record and even analyze your trading history. This can add a new dimension to your system and your general understanding of your own methodology as a trader.

3. Trade Your Market At The Right Time

Another major advantage that modern traders have is that remote monitoring of and access to foreign markets is easier than ever before. Particularly for those who might explore currency trading and forex and precious resource markets, it’s important to know when the markets you’re involved with are open, when they’re most active, and when you can make trades and maximize your profit potential. Generally speaking, many traders are actually more profitable when markets are less active, which may sound counterintuitive to a beginner. But less activity means less volatility and a better chance to make a reasonable, informed decision.

4. Look To The Long-Term

There are key differences between trading and investing as they’re popularly understood, with the former involving short-term, consistent activity during the day and the latter referring to long-term plays. Both can be sound economic practices for those who understand how to go about them, but one tip that’s vital for beginning traders in today’s world is to consider long-term plays; basically, let your money go to work. Patience is a virtue, and giving your investments time to pay off is often more beneficial than making quick decisions all day every day. This is particularly important for new traders because so many aspects of modern life have gotten us used to the idea of instant gratification.

No number of handy tips or recommendations can fully prepare you for stock trading. You’ll still need to study the markets, get to know the companies you want to invest in, and devise your own strategies. But these ideas can certainly help build your foundation as a new trader.