10 Buy & Sell Secrets Every New Trader Should Know

Trading in financial markets can be rewarding, exciting, and—when done without proper knowledge—disastrous. Whether you're eyeing stocks, forex, crypto, or commodities, knowing when to buy and sell is at the core of successful trading. For new traders, the learning curve can be steep, and mistakes can be costly. That’s why understanding key trading secrets from the start can save both time and money.

Here are 10 buy and sell secrets every new trader should know before diving into the markets.

1. Never Trade Without a Plan

Secret: Every trade should be part of a broader trading plan with clearly defined goals, entry points, exit points, and risk tolerance.

Why It Matters: Many beginners buy or sell based on emotions, rumors, or hype. That’s gambling, not trading. A trading plan eliminates impulsive decisions and helps keep you disciplined. Before entering any trade, ask:

• Why am I entering this trade?

• What price am I entering at?

• Where will I take profit?

• Where will I cut losses?

Action Tip: Write down your trade plan and follow it religiously. Tools like trading journals or apps like Edgewonk or Tradervue can help.

2. The Trend Is Your Friend—Until It Ends

Secret: Trade in the direction of the trend, especially as a beginner. Fighting the market is a losing game.

Why It Matters: Buying in a downtrend or selling in an uptrend can quickly turn against you. New traders often think they can pick tops and bottoms—this rarely works consistently.

How to Spot a Trend:

• Use moving averages (50-day or 200-day)

• Watch higher highs and higher lows (uptrend)

• Use trendlines or tools like the Relative Strength Index (RSI)

Action Tip: Confirm a trend across multiple time frames before entering a trade.

3. Support and Resistance Levels Are Your GPS

Secret: Understanding support (price floor) and resistance (price ceiling) is critical for knowing when to buy and when to sell.

Why It Matters: These levels indicate where price action may pause or reverse. Buying near support and selling near resistance gives you a favorable risk-reward ratio.

How to Use It:

• Identify key levels from historical price charts.

• Combine with volume data—higher volume at a level = stronger level.

• Set stop-loss orders just below support (for longs) or above resistance (for shorts).

Action Tip: Use tools like TradingView to draw horizontal lines and analyze reactions to price levels.

4. Risk Management Is More Important Than Winning Trades

Secret: You can be wrong 40% of the time and still make money if your risk/reward ratio and position sizing are right.

Why It Matters: New traders focus too much on being right. But trading is a game of probabilities. Even top traders lose trades.

Risk Rules to Live By:

• Never risk more than 1-2% of your capital on a single trade.

• Always use stop-loss orders.

• Avoid overleveraging, especially in forex or crypto.

Action Tip: Calculate your trade size before entering based on stop-loss distance and risk tolerance.

5. Don't Chase Price—Let It Come to You

Secret: Chasing a stock or asset that’s already moved significantly often leads to losses. Wait for pullbacks or confirmation.

Why It Matters: Price tends to revert to the mean. When something shoots up or drops sharply, a correction is likely.

How to Avoid Chasing:

• Set alerts for your desired entry levels.

• Use Fibonacci retracements to find pullback levels.

• Wait for confirmation candles (e.g., bullish engulfing, hammer, etc.)

Action Tip: Master the art of patience. Missing a trade is better than entering a bad one.

6. Volume Tells the Real Story

Secret: Price moves are stronger when backed by high volume—pay attention to it.

Why It Matters: Volume indicates the strength of a move. A breakout without volume is likely to fail.

What to Look For:

• Breakouts above resistance with rising volume = strong buy signal.

• Sudden spikes in volume may indicate accumulation or distribution.

• Divergences between price and volume often precede reversals.

Action Tip: Use volume indicators like On-Balance Volume (OBV) or Volume Profile for added insights.

7. News and Sentiment Move Markets—But Can Be Traps

Secret: Markets move on expectations, not just news. By the time you hear the news, it's likely already priced in.

Why It Matters: Beginners often react to news headlines without context. But institutional traders plan moves ahead of announcements.

Examples:

• Positive earnings might lead to a stock drop if expectations were even higher.

• "Buy the rumor, sell the news" is a common market behavior.

Action Tip: Watch economic calendars (e.g., FOMC meetings, earnings releases). Avoid entering trades right before major news if you're uncertain.

8. Technical Indicators Are Tools—Not Crystal Balls

Secret: Indicators like RSI, MACD, Bollinger Bands, and moving averages are great, but don't rely on just one.

Why It Matters: Indicators lag behind price. Used alone, they give false signals.

Best Practices:

• Combine 2-3 indicators with price action.

• Confirm signals before entering.

• Avoid "indicator overload"—too many indicators create confusion.

Popular Combinations:

• RSI + Moving Average

• MACD + Trendlines

• Bollinger Bands + Candlestick Patterns

Action Tip: Backtest your indicator strategies before going live.

9. Mindset Is 80% of Trading

Secret: The difference between successful and failed traders often comes down to psychology—not strategy.

Why It Matters: Fear, greed, impatience, and revenge trading ruin more accounts than bad strategies.

Psychological Traps:

• Fear of missing out (FOMO): Leads to chasing.

• Overconfidence after a win leads to risky trades.

• Fear after a loss leads to hesitation or avoidance.

• Revenge trading: Trying to make back losses quickly.

Action Tip: Develop emotional discipline. Meditation, journaling, or even simulation trading can help train your psychology.

10. Keep Learning and Adapting

Secret: The market is dynamic. What works today might not work tomorrow. Stay curious, humble, and always learning.

Why It Matters: Rigid traders don’t last. Markets go through phases—trending, ranging, volatile, and calm. Strategies must adapt.

How to Keep Growing:

• Follow reputable trading educators or YouTube channels.

• Read trading books like “Trading in the Zone” or “The New Trading for a Living.”

• Analyze your past trades—wins and losses.

Action Tip: Dedicate time each week to learning something new or refining your existing strategies.

Bonus: Simple Buy & Sell Setup for Beginners

Example Strategy: The Moving Average Pullback

Buy Signal:

• Price is above the 50-day moving average.

• Wait for a pullback to the 50 MA.

• Confirm with a bullish candlestick + RSI above 40.

• Place a stop-loss below the recent swing low.

Sell Signal:

• Price reaches resistance.

• RSI shows overbought (>70).

• Volume starts to decline.

• Use a trailing stop to protect profits.

Final Thoughts

Trading is a skill—like flying a plane, it requires training, practice, and calm under pressure. These 10 secrets won’t make you a millionaire overnight, but they will protect your capital, sharpen your judgment, and build the foundation for long-term success.

Remember, the goal isn't just to win trades—it's to develop consistent, disciplined habits that keep you in the game long enough to master it.

Key Takeaway: Trading isn’t about finding a “perfect” buy or sell signal. It’s about managing risk, reading the market, and growing through disciplined practice. Master these 10 secrets, and you’re already ahead of most new traders.