There
is no universal recipe for success in trading. However, there are some
baselines you should follow to have a better shot at gaining profit. You can
learn these vital reference points from your own mistakes—or choose the easier
way and study the experience of others. In this article, Kar Yong Ang,
financial analyst at Octa broker and successful trader, names three fundamental
rules of trading that he learned the hard way—and wished he knew at the start
of his journey.
At the age of 21, Kar Yong Ang started trading
with just $500 in his account balance. In two years, he turned it into $13,000.
Today, he is a financially independent trader and investor, an expert analyst
at Octa broker, a speaker, and a mentor who has coached hundreds of traders
across Southeast Asia.
Despite his successful career in the financial markets, Kar Yong
acquired his trading skills and knowledge the hard way—from his own wins and
losses. Below are some of the key things about trading that he wished he had
known sooner.
1. Use risk management to mitigate stress
Many traders treat risk management tools as
optional and fall back on them only on special occasions—for example, in times
of increased market volatility. Unfortunately, this approach has some
significant drawbacks. It may not affect the outcomes immediately, but in the
long run, the ‘intuitive’ trading draws
your energy and exposes you to stress. What’s more, the shorter the timeframe
you’re trading on, the more significant the probability of a single drastic
price change that can ruin your session.
The stop-loss and take-profit
orders make traders feel more confident and think clearly. The basic risk
management tools allow them to put the nerve-wracking price drops out of the
equation and make their sessions more time-efficient.
To empower traders even more, Octa
broker implemented advanced risk management features into its proprietary
trading platform, OctaTrader. Trailing
stop and break even tools allow
traders to set up dynamic, market-sensitive exit points to secure the gains or
eliminate the risk of financial loss within a particular trade.
2. Try to keep things simple
In most cases, a simple, logically sound
strategy will outperform a more sophisticated but less mentally accessible one.
For most traders, considering factors such as price action, basic support and
resistance zones, and volume can be enough to start making progress. Simpler
strategies have the advantage of being easier to execute, given the trader’s
self-discipline.
The more steps a strategy involves,
the more room for doubt, error, and emotional interference. When the approach
is simple and well-tested, execution becomes automatic, and consistency
improves.
According to Kar Yong, engaging
with a reliable and globally regulated broker like Octa is one of the most
crucial steps a trader can take to simplify his or her journey. Since its
foundation in 2011, Octa has offered transparent fees and trading conditions
and avoided any hidden tricks when it came to client relationships.
Octa’s trading platform, OctaTrader, aims to simplify the trading
process by giving traders all the necessary tools within a seamless,
customisable trading ecosystem. OctaTrader combines powerful AI tools and
actionable expert knowledge to facilitate well-informed, low-stress
decision-making.
3. Follow the three-fold process
For many years, Kar Yong has been
rigorously following the same process throughout his trading sessions. It
consists of three phases: direction, setup, and context. Along with the use of
risk management tools, this framework helped him make his trading more
consistent and reduce the cognitive load.
1. Direction: define the market trend
It defines
whether it is time to buy or sell. At this step, traders identify the dominant
movement—uptrend, downtrend, or range. Direction is often determined using
price action, trendlines, or momentum indicators.
2. Setup: find an entry point
After
defining the direction, Kar Yong switches his attention to the setup, or the
specific conditions or patterns that indicate it’s time to act. These
conditions include breakouts, pullbacks to moving averages, candlestick
formations, or support/resistance bounces. Allowing for the technical
precision, the setup phase refines the entry point. Given that, the setup must
align with the chosen direction: many losing trades come from jumping on setups
that go against the prevailing market movement.
3. Context: look for factors that can
affect the trade
Context is the broader environment around the
setup—volatility levels, time of day, proximity to news releases, key
support/resistance zones, or overall market sentiment. For example, a textbook
setup might appear just minutes before a major central bank announcement. In
that context, the setup becomes less reliable due to expected market
turbulence.
It is worth mentioning that all
three elements must align. When this framework is applied with discipline, it
acts as a mental checklist—keeping traders focused, methodical, and less
vulnerable to emotional or impulsive decisions.
Conclusion
As a trading professional with a
long and successful track record in the markets, Kar Yong Ang values experience
over immediate success. In trading, one of the most important prerequisites of
success is perseverance and seeing every trade as an opportunity to improve.
Having said that, traders can significantly reduce the burden of
beginner’s mistakes by using modern trading tools such as Octa’s proprietary
platform. It empowers both emerging and seasoned traders by providing them with
a seamless trading ecosystem that enables better performance and less stress.
On top of that, Octa additionally reduces the traders’ stress by offering
seamless, fast, and efficient withdrawals, which helps the broker establish
trusting relationships with its clients.
Disclaimer: This article does not contain or constitute investment advice or
recommendations and does not consider your investment objectives, financial
situation, or needs. Any actions taken based on this content are at your sole
discretion and risk—Octa does not accept any liability for any resulting losses
or consequences.
About Octa
Octa is an international broker that has been
providing online trading services worldwide since 2011. It offers
commission-free access to financial markets and various services used by
clients from 180 countries who have opened more than 61 million trading
accounts. To help its clients reach their investment goals, Octa offers free
educational webinars, articles, and analytical tools.
The company
is involved in a comprehensive network of charitable and humanitarian
initiatives, including improving educational infrastructure and funding
short-notice relief projects to support local communities.
Since its
foundation, Octa has won more than 100 awards, including the ‘Most Reliable
Broker Global 2024’ award from Global Forex Awards and the ‘Best Mobile Trading
Platform 2024’ award from Global Brand Magazine.
This article was written by IL Contributors at investinglive.com.