Village Trader recently started trading in the futures market for the first time. The learning curve is more challenging than expected!

Over-trading is a common mistake when you’re starting out. In time, you will start to identify the unconscious assumptions that drive your trading decisions. In the meantime, this post highlights some common drivers, and a nifty technique to help you avoid over-trading.

A stop-loss order is the most effective way to cut your losses when a trade turns. You need to place the stop-loss order when you enter the trade. But deciding where to place it is difficult – the possible positions are infinite. Here Njabulo Nsibande illustrates his strategy with last year’s S&P 500 chart.

Your trading account is actually an ‘investment fund’ in which you’ve invested. Much like the ETFs you’ve bought, or your RA or pension fund. The only difference is that you’re the fund manager responsible for the returns.

Because it’s so easy to start trading, we often rush off to trade and call ourselves traders. But to be really good at it we need to go through our drills.

Join the journey where learning never ends and the destination is real.

Take a moment to review your last year’s trading – it’s not just a question of profit.

All markets are risky because every trade placed on any market is a probabilistic bet. The key lies in managing the risk.

The reality is that every trader will run into a string of losing trades at some point. A long streak can undermine your confidence, which causes more problems because you need confidence to trade effectively.

To trade successfully you need confidence and discipline. Confidence comes from competence and believing in yourself. Here are some guidelines for building your confidence and competency as a trader.