It is 2022 and you are probably wondering how to improve your trading strategy and make more profits from your trades. Well, AllStars Trader has a few tips that can help you but first, you need to assess whether your trading strategy is working or not.
Is Your Trading Strategy Working Against You?
You can gauge how effective your trading strategy is by the profits you make. If you regularly make more losses than profits, you could either be investing in unfamiliar assets or using the wrong strategy. Fortunately, both issues can be fixed with a few tweaks.
How to Improve Your Trading Strategy
Change Your Assets
Traditional financial assets such as forex pairings have been around for a long time but adding new instruments to your trading portfolio can protect you from losses. AllStars Trader’s football CFDs can be a fun and profitable addition to your portfolio. You can trade your favourite footballer just like you trade your favourite Euro-Dollar pairings. By diversifying your assets with alternative CFDs you may have more interest in, you are more likely to inject your passion into your trading and find more success..
On the other hand, if you have been trading All-Stars Trader football indices and want to increase your profits, then you can try diversifying your players. Besides Ronaldo and Messi, there are more than 4000 other players that you can trade on the AllStars Trader web trading platform and app. You can also consider trading in players from different leagues and international competitions.
Tweak Your Trading Times
Timing is everything when it comes to trading, hence you must choose your trading times carefully. Whether you are trading traditional stocks or alternative assets, you must set a trading schedule. The AllStars Trader match centre is your one-stop point for all your match fixtures and player stats. You can use the match calendar to schedule your trades at convenient times. AllStars Trader CFDs are most liquid when matches are taking place. These are often outside of the normal working day so you can take time to watch the game and follow your trades second by second.
Adjust Your Costs
One of the reasons you might be making losses is because you are misspending your trading deposit. For instance, if you deposit $20, you cannot afford to buy more than one player or even buy a high number of their shares. You can either adjust your spending or increase your deposits to start spending more. You can also use your leverage more carefully to avoid risking too much.
Use Stop Loss and Take Profit
Stop loss and take profit limits are your best tools for maximizing your profits and limiting losses. You can also use these tools to trade when you are unavailable to monitor your trades in real-time.
The take-profit tool instructs your broker to close your trading position once your profits reach a pre-set limit. It enables you to benefit from marginal gains and protect your profits. If you buy 1 share of Ronaldo at $51.9, for instance, you can set a take profit order to sell him once his price hits $61.9. When you reach this limit, and your order is executed, you will make a profit of $10. On the other hand, if you think his price will fall and go short on him, you can sell this share at $51.9, and set a take-profit order at $41.9. When his price drops to this set limit, you will take home a profit of $10.
Stop-loss orders, on the other hand, instruct your broker to close your trading position when the market moves against your price predictions. For example, if you buy 1 share of Ronaldo at $51.9, you can set a stop-loss order of $50.9 so that in case his price drops, you will only make a loss of $1. And if you sell that share at $51.9, you can set your stop-loss order at $52.9 so that if the price moves up, you will only stand to lose $1 per share. Such risk management tools should be part of your trading strategy as they will help you avoid unnecessary losses and maximize the smaller profits.
Study Your Assets
Whether you are trading top commodities like gold or your favourite footballer, you need to study your assets. You can access the players on the AllStars Trader match centre and study all the stats of your favourite players. You can also get an in-depth analysis of their in-game performance and how this affects their index points and price. This in-depth knowledge of your players can enable you to predict their prices based on these stats and create a winning strategy for your future trades.
In conclusion, you do not have to stick with a strategy that is not working. While the above tips can help you create a better strategy, you should not implement all of them at the same time. You should instead apply one change at a time and monitor how it affects your trades before trying another. This will give you a clear indication of what changes to adopt permanently. Subscribe to our blog for more trading tips and watch our videos to learn more about our alternative assets.