Many of you have already started in your trading adventures, but so far you are not at the level you like to be?. are you constantly losing money…?
Whose fault? Did you ask yourself the right questions?
If you’re fed up going around in circles and you finally want to understand why your trading journey is not a success, here is a list of 7 important points that will allow you to stop being one of the 89% of individual traders who are constantly losing money trading the financial markets.
1: Choose your trading style carefully!
You have probably started a certain trading style recommended by a friend or after watching some videos on the subject where you are presented by the many advantages of this or that trading style.
The question you want to ask yourself is which trading style suits your personality best?!
Not all trading styles are for you! There are several factors to consider when making the right choice. If you are by nature a person who likes to take your time analysing graphics etc. and the idea of staying in front of your screens for several hours or even the whole day is appealing to you, then your trading style should be swing or long term trading.
If, on the contrary, you like action thus making your decisions in reaction to what is happening in the moment, you should favour scalping!
Once you have found the trading style that suits your personality, stop looking further and become an expert in this field! By experience, but also after talking to several traders, if you are constantly looking to explore new trading styles that don’t match your personality, you will be wasting your time and money…
2: Choosing the right markets.
Once you have found your trading style then, one of the essential tasks is already taken! Next, it is important to select a market that matches your trading style.
If you have chosen to scalp, then choose the markets that match your trading style! In order to scalp, you must choose futures contracts and use the order book, period!
Learn more about scalping here.
3: Be equipped like a pro trader!
Many beginners in trading are not willing to pay money for pro trading platforms… I must admit that I don’t quite understand this reluctance to have the right tools to work professionally. In all businesses you have to be well equipped to work as efficiently as possible! So why should it be different in trading?
Yes, some software are expensive, but if you are poorly equipped, you will lose a lot more money trading with amateur software, rather than investing in professional tools.
When I talk about professional tools, I’m not talking about the famous trading systems! I’m talking about tools that pro traders use on a daily basis.
Private investment funds and big banks, don’t use free trading platforms like the ones offered by the many brokers that advertise for individuals!
I invite you to Google search: “Trading Floor” / “Hedge fund” images. Take a good look at what pro traders have on their screens. You will not find “Web” platforms, let alone traders who trade the markets with a smart phone.
Did you know that brokers who offer free platforms and free real-time market data are re-quoting to their advantage? Nothing in life is free, these brokers have to make a living from somewhere.
4: The right broker!
It strikes me how new traders don’t do enough research before opening an account with a broker!
The right choice of broker is a pillar of your success! The role of a broker at the base is to be the intermediary between you and the markets. For the service the broker provides you must pay a commission.
Under no circumstances should your broker give you money for free according to the amount of money you deposit with him.
Here are some points to recognise a fraudulent broker:
– The Broker offers you to make deposits with a credit card.
– The Broker offers you extra money depending on the amount deposited.
– The Broker’s office and website are located in countries with a reputation for fraud (mostly Cyprus).
– Brokers who offer you to “copy” the best traders.
– Read the many comments on the Internet. If some people report that in order to withdraw their money they had to wait for months then you better run…
I invite you to visit your country’s financial market authority.
In the US it’s the FRB, the Federal Reserve Board. There you will find a list of fraudulent brokers identified by the FRB.
5: Trading is a serious activity as any other job!
If trading is a hobby for you or a way to show off in front of your friends, then the chances are your success will be short lived.
If trading gives you strong emotions and you are convinced that you are going to make a big move soon…go to the casino, you will have more fun than being alone in front of your screen.
However, if you see trading as a serious activity, you should definitely undertake trading as if you were starting your own business.
You need to have a plan, realistic goals and a professional way of working…just like in any other business.
6: Train well!
As in any other business, the quality of training you receive will drastically change your future success. It’s expected that a doctor, an air plane pilot, a plumber, a lawyer etc. must learn their skills.
They all received training taught by people who practised and earned their living from their experiences. Why would the process in trading be different?
It goes without saying that you probably would not trust a lawyer who has taken a $49 training course on the Internet.
We all know that trading is a difficult business. According to some studies, it is as difficult to be a successful trader as it is to be a top athlete.
How do you choose your training?
-The training centre/instructor must make a living from trading.
-Training must be reasonably expensive! I can assure you that a training at 49$ or 99$ will bring you nothing more than what is available for free on the Internet.
-Trades must be made on real accounts!
-The instructor is available to you for questions you may have before, during and after the training.
-The training centre/instructor should not make you a promise that you will become a millionaire in a few days or that you will make incredible profits such as transforming $500 into $1.8 million.
7: Practise, practise and practise again!
A good training will give you a solid foundation, as well as a structured work method. The rest of your success is up to you!
Don’t think that at the end of your training you will be working 10 minutes a day and earn your living. With time and experience you will spend less time in front of your screens.
It is worth it! I remember when I started out, it took me several hours, now it only takes me a few minutes. Nothing miraculous, it’s just experience and a lot of effort for several years.
Don’t forget that behind every trader who makes a living from trading there is a lot of work.You can be a successful trader too.
The only question you have to ask yourself before starting your journey is: are you ready to work and do things the right way?