There are many principles related to money and Olymp Trade. For example, probability principle, patience principle, where-to-stop principle, etc. And today, I will share the 5 most basic principles that you should definitely know when starting to trade and make money in Olymp Trade.
“If you don’t know the game well, it’s best not to join in.”
Plan to make $1,000 in Olymp Trade
This will be the first withdrawal of a 20-day series (earning $50 per day) in Olymp Trade. I have detailed the trading plan in this article: How to make $1,000 in Olymp Trade: Safe, stable, and easy to carry out
Proof of withdrawal in Olymp Trade to the Neteller e-wallet. Today, on July 7, I opened 3 orders ($20 for each) and won all 3 orders. The profit for the day was $49.2. And when you withdraw money, Olymp Trade will deduct the bonus received.
In this article, I will share the 5 most basic principles when you start trading in Olymp Trade. The trading strategy with trends and signals will be shared in the following articles.
Five principles to remember when starting trading in Olymp Trade
Principles of probability
Certainly, nothing is for sure
Fixed Time Trade or Forex is just a probability game in Olymp Trade. There is no trading method or formula that can guarantee you 100% winning at all. You can only use technical indicators, candlestick patterns, etc. to improve your probability of winning.
The best way for you to minimize the risk of the probability principle is: “Make things simple”.
For example, Candlestick charts of 5 minutes, 10 minutes, or 15 minutes, etc.? The expiration time of 1 minute, 2 minutes, or 5 minutes, etc.? Technical indicator choices such as RSI, Bollinger Bands or MACD, etc.? All of this creates confusion. The more choices you have, the easier it is to lose focus. This is the trap that Olymp Trade designs for you.
Let’s make everything simple: 5-minute Japanese candlestick charts, expiration time of 5 minutes, Trend & Signal trading strategy. For now, you just need to focus on opening UP/DOWN orders.
Principles of patience in Olymp Trade
That’s right! The market always repeats, but it will never repeat immediately.
You can understand it simply as follows: If the market gives you a nice entry point (according to your criteria), it takes much more time to create an additional same entry point.
The market never offers signals in succession so you can trade, trade, and trade continuously. Therefore, to open an order, you need to WAIT. PATIENTLY WAIT The market is where the patient will always make money.
Remember: Professional killers only use a sniper rifle with a single bullet to kill their prey. If using a handgun or AK-47, those are just gangsters.
Principles of capital management
In a probability game, you are not always the winner.
Capital management means managing money. Whether or not you make money in Olymp Trade depends a lot on this. Trading can be winning or losing, but the final result must still be profitable. Maybe your probability of winning is not high, but appropriate capital management can bring you profits. Conversely, you can win continuously, but just lose once, you may lose everything.
After years of trading, teaching, and interacting with Olymp Trade traders, I have heard a lot about how to trade all-in in which we bet everything in one order then hold our breath and pray for luck. Naturally, the result is always empty-handed. Everyone would do it once, and I am of no exception.
Right now, if you don’t have a clear capital management principle, don’t step into Olymp Trade.
Principles of the faster the riskier
Make money and get rich in just a few minutes? This only exists in fairy tales.
In Olymp Trade, there is no method for you to trade and win quickly. The faster the time is, the greater the psychological pressure is. All your transactions will largely be emotionally governed. And of course, most decisions that come from our emotions are wrong.
Therefore, never get used to the 60-second (1 minute) time frame. It’s so fast that you don’t have time to think. You will easily rush into transactions inertially until your account runs out of money.
Remember: In Olymp Trade, you can open orders of 15 minutes, 30 minutes, or even a few hours. And we will choose a simple, safe way to make money. Do not complicate it with 60-second trades.
Principles of where-to-stop when trading in Olymp Trade
Warren Buffett once said: I have 2 principles
- Never lose money.
- Remember principle 1.
Knowing where to stop is the pinnacle of every probability game. And Olymp Trade is no exception. The best way to keep your money is to stop. There is money, there is a chance.
Trading is an addictive substance. And a trader who cannot control himself will become an addict. The trading spiral will make you never get out of the market. The more you rush in, the more money you lose.
One last word
There are still 19 more posts on this topic. Do not rush. Keep in mind these 5 trading principles in Olymp Trade carefully. Establish yourself a habit of being patient in trading.