How to Become a Successful Trader
In the big financial world, you need to understand that your personal success depends only on you: your experience, your strategy, market understanding, & ability to analyze and make decisions in quick situations. Not every day will be profitable and successful and it’s very important to learn how to think a few steps ahead to maximize profits.
Evaluation of a successful trader, most likely, is subjective. Not always a successful trader is a person with a bank account of seven digits and certainly not the person who built his career in one day. There is no “single right way”, but there is definitely your way with your story.
These are some recommendations, in which you can follow to increase your chances of becoming a successful trader:
- Discipline
In any case, whether it’s sports, work, or self-development, doing something regularly, every day, forcing yourself on your own, without any outside pressure, taking a step towards your goal is discipline, or rather self-discipline. Make mistakes but learn from them, be disappointed but still believe in you. This trait is possessed by leaders and this is not surprising. Is it?
2. Courage
No matter what, push forward and believe in yourself, go against the crowd and against others’ negative attitudes. Go beyond the scope of what you think is possible.
3. Insight
Think faster, better, more productive than the rest. Analyze the market and understand what trends drive it.
4. Self-development
Perhaps this should be an integral part of who you are in volatile financial market. What was trending yesterday will certainly be past tomorrow. “I am 88, but I joyfully jump out of bed every morning,” Warren Buffett. Self-development is a constant work on oneself. Just living and working is not enough. Only when a person concentrates on his desires and sets himself specific goals can he succeed. The world is changing and with it the financial markets: new technologies, additional trading tools, trading algorithms and trading bots. Not taking into account the technical progress — a successful trader can easily lose his assets.
5. Teamwork
It is important to communicate, ask questions and analyze. Never be afraid to ask opinion leaders if something is not clear to you. In formulating the right question, we often can answer it ourselves.
6. Make Notes
Successfully closed the deal? Super! Write it down. Where exactly did you earn, what did you focus on, what strategy did you use. If the trade was successful thanks to an experienced trader — write down his name, analyzing his actions, you can develop your successful strategy. By the way, CopyRage took into account the importance of taking notes and discussing the market with analysts and other traders, therefore it positions itself as a social network where you can compare everyone’s thoughts. All you need to bring with you is the desire to learn.
Next, let’s talk directly about the trading itself.
Where to begin when starting your trading career?
It is very important to take into account as many mistakes of other traders as possible, especially beginners, because most likely you will have the same mistakes. First, try to simulate your trading, write down at what price you would buy an asset, write “take profit” and “stop loss” for yourself and then watch. This will help you to feel the market, understand its features and rules. Imagine that you have only one attempt on which your future depends.
How much time should be devoted:
Working as a trader stands for irregular working hours, that means, you have to build your schedule and determine employment, it all depends on what stage you are at and how much you want to earn.
In fact, there are several key factors that can affect your work day:
a) Level of training
The more you know about the market, the less time you need to spend on self-training. As mentioned earlier, do not immediately start trading in real money. The first months of study should take most of your time, and this is from 4 to 8 hours a day.
b) Choosing a strategy
It is worth noting that there is no “permanent” strategy, it all depends on the asset. If you trade short-term deals, for example, scalping, then your earnings will be proportional to the time spent at the computer. For beginners, long-term strategies are more suitable when you open a deal for a few days. Here the main analysis is before opening an order and about 15–20 minutes every day for control. This can panic or confuse you, which often happens with newcomers. Use Stop loss and take profit and continue to analyze another asset.
c) Initial capital
Having opened a deal with a volume of 1 lot and having earned $100–200, you can safely go to rest. But to trade such volumes without great risk requires at least $5000–10000 in the account (depending on the asset). Like most, you will start only with a couple of hundreds, and most likely you will be forced to use leverage, which in turn will not allow you to conclude transactions for a long time and will tie it to the trading terminal.
If, after reading the above, you are ready to change yourself and your future, then the profession of a trader is for you!
Last but not least an important tip: do not forget that only in a team you become better. As in sports: playing with a stronger opponent — you learn to be stronger.
