Trading on the stock market sure seems very complex at first, and you cannot avoid mistakes in your first trades. However, you can learn from them and improve your trading skills. That is why we have gathered this list of the funniest trading memes any trader can definitely relate to—and added a couple of stock market trading tips for novices who are yet to learn all the tricks of the trade.
1. When you struggle to remember all the rules at once
As trivial as it might seem, a clear understanding of stock trading basics is what distinguishes a successful trader right from the start—even if you cannot quite keep it all in your head yet.
If you want to win in the long term, you have to learn the game’s rules. Before investing all your hard-earned money in the stock market, make sure you understand the basics: how stocks work, what affects the prices, how to read charts to predict trends, and so on. Traders who jump in with no interest in how things really work usually lose their money really quickly.
Look for practical investing tips, attend webinars, or follow prominent traders online. But it does not mean you must spend years studying before making your first stock market investments. A demo account is a great way to start trading while still learning: this way, you can practise your trading and risk management skills without risking real money.
2. When you discover that day trading may be stressful
Before you actually start analysing stock markets and trading with real money, you should make a clear decision about your priorities and long-term goals.
Decide what you need that money for—and how soon. That determines your risk profile, choice of stocks, and available strategies. Some people prefer to buy stocks and hold them for years to capitalise on the economy’s long-term growth. Some do not even bother to manage their portfolio—instead, they invest in mutual funds and let professional managers do it.
Others prefer to trade much more actively, opening and closing orders during the day. While that requires much time and effort, you can react to current stock trends quicker and reap greater profits with the right instruments. Luckily, decent brokers help you analyse the market and give a variety of stock market trading tips.
3. When you try to find one good broker on the market
Choosing the right broker for trading in stock markets is the most important decision to make. It defines your instruments, trading strategies, and profits—or whether you will be able to withdraw your money at all.
Reliability is essential for any investor. While there are dozens of online stock trading platforms in Indonesia, not all are equally honest and trustworthy. To avoid scams, make sure to do a little research first. The perfect broker must have an official licence, a long history of successful service, and an advanced security system to protect your funds.
If you feel confused, then just read consumer reviews online. They usually cover key aspects of every brokerage service: access to global and Indonesian markets, spreads, commissions, available instruments for your portfolio, deposit and withdrawal options, and so on. One of the most highly-rated brokers in Indonesia is the online CFD broker Octa. It features low spreads, a wide range of tradable assets, copy trading features, and deposit bonuses. The broker has been helping traders from all over the world reach their investment goals for more than a decade.
4. When you start applying risk management techniques
Keep in mind that all trades on the stock market involve risk, so risk management is a must. Do not put all your eggs in the same basket, even if that promises unusually high profits.
There are several basic rules for risk management you should learn. First of all, learn how stop loss orders work and always use them—even for small trades. The rule of thumb is to make sure your expected profits from every trade relate to possible losses as 2:1. Most traders do not risk more than 2% of their funds on one trade.
5. When you miss trading, even when on vacation
Stock trading might get on your nerves sometimes. Make sure you learn how to deal with greed and fear early on to avoid losses caused by strong emotions.
Learn to stick to your plan and make trades rationally. Do not let emotions ruin your strategy, no matter what happens on the market. Even if you lose some money, treat it like a lesson, build a better strategy, and go on. And make sure to take breaks on weekends instead of switching to other instruments like cryptocurrencies. While it may seem like missing opportunities, it will benefit your emotional well-being—and, therefore, your long-term success as a trader.
