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Five tips to get you in the right trading mindset

Charts, strategies, orders, trades, entry and exit points, technical analysis, fundamental analysis – let’s be honest: trading might make your brain explode.

 

Indeed, trading is demanding, as you’re always having to focus on different things and multitasking. But, at the same time, trading is exciting and mind-blowing (in a good way this time!). 

 

So, if you feel that you’ve lost all your mental energy and have to bring this excitement back, you need to work it out. Getting in the right trading mindset is not easy, but luckily there are several ways to fuel the flame. 

 

The most important trading tool is YOUR mind. So recognising when you are right and wrong can help you pave your trading path. Trading psychology allows you to understand why you are making the same mistakes repeatedly. It also helps you to find patterns and solutions so that you can make better trading decisions. 

 

Before we start counting the five things to get you in the right mindset, you need to acknowledge two facts: firstly, you’re a human being, so you can’t avoid making mistakes. Secondly, markets are not human beings, so there is no way to ‘understand’ their attitude. What you do need to understand and may want to change is your attitude towards them.      

Five tips to get you in the right trading mindset

Come on… Give me five!

Is there a right trading mindset? Let’s be clear on this: the right mindset for you is the one that makes you feel better about yourself as a trader.

 

However, you can find some tips that help most traders avoid trading burnout. 

 

Practice patience: Patience is a virtue. Winning traders are patient. In that way, they improve their performance. On the contrary, impatient traders deal with unnecessary losses, additional stress, and wasted emotional energy.

 

Never stop learning: One way to improve your trading is to review your trading strategies regularly and look for things you can do differently for better results. Even when you lose on a trade, you must try to learn from that losing position. Learning is an essential aspect of trading, and trading is dynamic. So, don’t stop the quest to learn even if you become a successful trader, because things in trading change all the time. 

 

Control your emotions: When your trading is profitable, you feel like you are on top of the world. But when things are as you expected them to be, you’d better find a way to control your emotions. Emotional trading has several pitfalls, and doing so can result in further and more significant losses. A way to manage your emotions is to take a break, breathe and think logically. Then, accept the uncertainties of the markets. 

 

Fear, which is the scariest demon in trading, can have a strong negative impact on you, so your top priority should be to control fear before you end up making mistakes until you quit.

 

Risk management: Practice with a risk-free demo account, set stop-loss and take-profit orders, consider the one-percent rule, and plan your strategy. In other words, do whatever it takes to cut down losses and prevent unpleasant surprises. Although the temptation of grabbing every opportunity is there, we must identify the risks of trading in advance to ensure we can endure if things go sour.

 

Get organised: Trading is a business, and any successful trader will tell you the same thing. Professional success lies in organisation, and here’s how you can achieve it: 

 

  • Keep a trading log to track your progress. 
  • Prepare a trading plan and review it from time to time. 
  • Stay in the loop with the latest trading trends. 
  • Set goals and define your trading style.

Has this blog got you in the right trading mindset? If the answer is yes, then open an account with Eurotrader to dive into the excitement of trading. 

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Reddit files for IPO, cashing on 2021’s meme stock frenzy

Last week, Reddit Inc. – the catalyst for this year’s meme stock frenzy – announced that it has confidentially filed for an initial public offering (IPO). 

 

The San Francisco-based social media platform has started the process of taking the company public by filing an S-1 with the Securities and Exchange Commission. 

 

Reddit is yet to provide further details, including the number of shares to be offered or the price range. This is due to regulatory reasons. 

 

The company raised $700m in a funding round in August and announced $100m in advertising revenue for Q2 2021. Reddit aims for a valuation of $15 billion when its IPO comes to market.

 

In growth terms, the company announced plans to double its staff headcount to 1,400 and expand its presence in the UK, Australia and Canada.

 

Although Reddit was founded in 2005, at the same time as Facebook and Twitter, it has taken a unique road toward going public. Reddit has a lower valuation and significantly fewer active users than its peers.

Although Reddit was founded in 2005, at the same time as Facebook and Twitter, it has taken a unique road toward going public

In March, in an early step toward a public listing, Reddit hired Drew Vollero as its first chief financial officer. Vollero previously led Snapchat owner Snap through its own IPO.

 

Reddit’s Chief Executive Steve Huffman said that with an IPO, he would want to make Reddit’s share offering more accessible to individual investors.

Reddit files for IPO, cashing on 2021’s meme stock frenzy

What exactly is Reddit?

According to the company itself, “Reddit is home to thousands of communities, endless conversation, and authentic human connection. Whether you’re into breaking news, sports, TV fan theories, or a never-ending stream of the internet’s cutest animals, there’s a community on Reddit for you.”

 

Reddit looks more like a forum with message boards and subreddits (online communities/forums dedicated to specific issues). 

 

Message boards on Reddit, most notably WallStreetBets, have played a significant role in popularising so-called meme stocks. 

 

The r/wallstreetbets community pushed stocks in retailers to unprecedented heights. In particular, the forum became a hotspot for individual advice-seeking investors who rallied around GameStop Corp. 

 

The 16-year-old content aggregator has since been looking to build on its gained attention. 

 

However, the Reddit investing community isn’t sure if they like the idea of the social media company becoming a stock itself.

 

Social media fan? How about speculating on the future movements of social media stocks or meme stocks by trading them as CFDs? Check out our product page to find all the mentioned companies and more!

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Tips for reflecting on your trading year

It’s the most wonderful time of the year – for many things, but also for reflection. However, traders are often so accustomed to the need for speed that often they don’t take the time to sit back and reflect.

 

Instead, traders should be taking advantage of the festivities and quieter markets to think about their trading year and consider how they feel about trading. In particular, looking back at our trades, activities, and decisions can help us confront our mistakes and focus on our personal growth as traders. 

 

Traders have a tendency to ignore all the bad and focus only on the wins and happier moments. This is called ‘emotional avoidance’, and it happens because it often hurts to think about what went wrong and why we lost.

 

But frankly, you need to not do that. Taking the time to reflect on your experiences and emotions, both positive and negative, enhances faster growth. 

 

Let’s see how 2022 can make way for a better version of 2021, your trading and you. 

Tips for reflecting on your trading year.

“Year’s end is neither an end nor a beginning, but a going on.”

As Hal Borland, American author, journalist and naturalist, once said: “Year’s end is neither an end nor a beginning but a going on, with all the wisdom that experience can instil in us.”

 

So, after reflecting on the trading year, you’d better design the ‘going on’. Below, you might find some inspo about how you can change or enhance your trading routine, considering your experience until now.

 

Find some time to reflect on your trading every single day: Journaling is a great way to reflect, build positive behaviours to avoid repeating past mistakes, make better future decisions, and increase self-awareness.  

 

Recording your everyday trading routine can help you think about the areas you need to improve in. But you can also track the areas in which you are outstanding. Focusing on good aspects too is very much needed and can be great for your motivation. So, cheers to both losses and successes!

 

Set goals rather than resolutions: Targeting is an integral part of everyday life, whether that’s to do with micro or macro goals. Every day, we make decisions based on goals we have already set, whether by design or unconsciously. But if you decide to set trading goals, your goals must be both achievable and measurable. They must also be realistic. Last but not least, you’d better focus on your goals and not only on the results.

 

Slow down and ask questions:  Your trading plan must be based on what you can control. Make your decisions based on what is happening, not what you think or want to happen. This means you need to ask questions, provide answers, and reevaluate from time to time. Don’t hesitate to ask for an expert’s opinion or that of a more experienced trader!

 

Want to prepare ahead of next year? Don’t forget to make use of Eurotrader’s economic calendar and crypto calendar to help you plan accordingly!

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Space travel stocks to watch as billionaires fly to the moon

Unless you’ve been living on another planet, you may have heard the latest trend among billionaires: flying out to space.

Following in the footsteps of Elon Musk, Jeff Bezos and Richard Branson, Yusaku Maezawa, the Japanese online fashion tycoon, was sent to the International space station (ISS) last Wednesday for 12 days. 

Maezawa blasted off from the Russian cosmodrome in Kazakhstan with a Russian-built Soyuz spacecraft, kicking off the first self-funded tourism mission to the ISS in 10 years.

On Saturday, Jeff Bezos’ Blue Origin launched its New Shepard rocket for the sixth time this year, marking its first launch of six passengers at once.

While investors poured more than $25 billion into space-related programs in 2020, 2021 was a turning point for private space travel. 

A possible reason for commercialising space is the development of reusable rockets by companies like SpaceX. The company has stepped in to provide additional transportation to the space station for US astronauts, freeing up space for tourists. 

In addition, massive investments from billionaires brought down the cost of a satellite launch from $200 to around $60 million.

Space stocks to watch as billionaires fly to the moon

Think twice before promising someone the moon.

Before you make a grand gesture of flying someone to the moon, you should be aware that such a trip will set you back $50-60 million for a spaceflight mission.

 

Otherwise, the long-term growth potential of space travel remains to be seen. The industry is still niche, unknown and speculative. 

 

However, Amazon founder Bezos and Tesla CEO Musk continue to fuel the trend with their plans. What’s more, the space sector is bracing for record IPOs in the coming years.

 

As the broader space tourism sector booms, space travel stocks appear to be taking flight, and space-enthusiastic traders and investors can use these stocks to boost their portfolios alongside the momentum. Among others, you might want to watch the following: 

 

Virgin Galactic Holdings Inc. (NYSE: SPCE.N) is an aerospace spaceflight company that pioneered human spaceflights for individuals. Virgin Galactic made history last summer by completing its first fully crewed commercial spaceflight, with its founder Sir Richard Branson being among the crew.

 

Boeing Co (NYSE: BA.N) is a multinational corporation leading the aviation and aerospace industries. Its products and services include commercial and military aircraft, satellites, launch systems, and communication systems. 

 

Lockheed Martin Corp. (NYSE: LMT.N) is an aerospace company developing advanced technology systems. The company made approximately $11.9 billion in 2020 sales for its space segment. NASA works with Lockheed Martin and other space companies to send astronauts to the moon and Mars.

 

A new age of commercial spaceflight has arrived. Space stocks might rocket, but they also might nose-dive. One way to tap into both directions is to trade CFDs.

 

Want to speculate on skywards and downwards market movements? Why not check out which stocks Eurotrader has to offer over on our products page?

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Do you still believe in the Santa Claus rally?

Many people think that Santa Claus does not exist because no one has ever spotted him. However, a seasonal rally that has been observed during the festivities has got some traders and investors believing in the Christmas magic.

The so-called Santa Claus rally is a historical pattern related to a year-end stock rally. The term was invented in the early 1970s by a market analyst who noticed the pattern.

While it’s not guaranteed, stocks tend to rally during the final five trading sessions of the year. The same occurs in the first two trading days of the new year as well. 

Historically, this market phenomenon has frequently delivered positive returns and a rise in stock prices. But, as with all seasonal effects, there is no guarantee that investors will see gains in any particular year. Past results cannot prove future performance, although data suggest that Santa rallies happen more often than not.

Eurotrader blog post | Do you still believe in Santa Claus rally

“Forget Christmas socks. What about stocks?”

What drives the Secret Santa rally? (No, it’s not reindeers.)

 

Many analysts believe that the Santa Claus rally results from people buying stocks in anticipation of the January rise in stock prices.

 

Other factors that may trigger the Santa rally are new year’s optimism or even the profiteering from holiday bonuses. 

 

Investors might also look at the consumer goods sector, which often gets a boost from holiday shopping. (Historically, strong stock markets have correlated with increased spending on goods.)

 

This year, the sentiment could be positive among traders based on optimism that the new year may be the last for the pandemic. However, the latest variant, Omicron, has also brought with it some concern and pessimism.

 

So there we have it. Stocks might go up, but they also might go down (as with any other time of year!). One way to tap into both directions is to trade CFDs, which allows you to speculate on upwards and downwards market movements.

 

Santa Claus visited Eurotrader early this year and dropped off a bunch of new assets! How about giving a boost to your trading portfolio by speculating the prices of our new commodities and indices