I do not embellish the article because of my own experience and my work with hundreds of traders that trade is very difficult and complicated. It is not surprising, but analysis of the data brokerage conrma that 40% of traders are going after the first month and only 7% still active after 5 years.
But, why is it so difficult and what makes traders struggle with this for so long? The reason why so many operators are given too early is because they see the results, and the next 9 points should help you get over it. The following points will help you understand how to survive your first year as a trader, and how to prepare your way to a great commercial future.
The first question that traders always ask is "how long does it take to be profitable?" And this is a very wrong question, when you first start. Yes, you may become a profitable trader for several years, but it is much more likely to lose before that several trading accounts. Then, you ask yourself "how do I not lose all my money?" Although this sounds rather well and many do not like it, but it's important to understand that in the first year of his conversion, not earn a lot of money. If you can negotiate breakeven and not lose money, it will be better than 99% of all operators and this will be an excellent start.
At first, you must concentrate on not losing all your money to continue trading and learning. Start with wrong expectations quickly leads to frustration, poor exchange and, at the end, a simple attention. Force yourself to avoid this at all costs.
No. 2 Focus on the right things
So if you're not making money, what will you do this first year? The first steps consist of a trader familiar with the market and market dynamics, you must find a worthy mentor (more on this later) and start studying as you can. You have to choose a method or approach and start paying all your attention only to him. During his business career, it is more likely to traverse multiple systems and try different techniques, and that's fine, but you should stay away from "hopping systems" shifting their focus each month. It is very important to develop the right mindset and avoid game and the rapid enrichment. Do not focus on making money, focus on creating a well established and learn all you can about the only method you choose order.
# 3 Should I trade in a demo account?
Commercial demo, of course, has its place and would definitely recommend traders. It is necessary to spend his first months in demonstration tests and / or backup to become familiar with the commercial mechanics and market dynamics. Too stay in a demo operation can have a negative effect. Trade show eliminates the emotional aspect of trading, which in turn does not teach us how to handle the pressure of real money. Open a small business account (You little!) And why say "soak your feet" and this will be a great way to practice. Just be careful not to start betting because your trading account is very small.
# 4 Creating a book of orders
We have briefly touched hopping systems, and it is very important to avoid this behavior and terrible thought. You should at least give your trading method 6 to 9 months before beginning to change completely. Also, try to really understand the tools and concepts used. Most traders use indicators or trading methods and do not fully understand what they are doing. If you want to become a professional, profit and devote all the time to trade, you really should study and deepen your leisure. Make a book order and take screenshots of these adjustments, take notes and study these adjustments constantly. Eventually, you will learn common features and patterns and, therefore, develop their knowledge. Trade, especially as technical analysis is used, It is a game of pattern recognition. Most traders mainly seek persistent results. It does not work that way. First, it must have a consistent approach, and then can have consistent results. Do not constantly change your trading method!
No. 5 Treat trading as a business
This is so abused phrase, because people throw it everywhere, without understanding what signica. For us, signica to be taken seriously trade. This is what this signica: After analyzing the market, type negotiation plans and planique its trading week in advance Create a list of vericación, with which you will contact you before entering the transaction. Vericación list contains trading rules Record all transactions in the trade journal All transactions you have made to obtain a deeper understanding of their strengths and weaknesses
No. 6 Find a mentor
Mentors can be strong, but can also be the opposite. There are many charlatans who make promises regarding quick and easy money. The words of doubling your account for one year, while trading 2 hours a day or the other, are too good to be true, and simply are not true. Why do you need a mentor? Almost all profitable traders deal in a system that somehow developed themselves or at least to some extent. The trading system is very personal, and must match your personality and your character. Therefore, do not seek a mentor promising "better earnings," but you must find someone who can teach you to trade in general. Anyone who build their thinking, talking about the psychology of trading,
Do not confuse the mentor provider signals or only those who buys the system, the mentor is the person you can turn to and that helps actively to become the best trader. Furthermore, in addition to the mentor, there are several other things you can do to improve. There are fantastic trading books, which describe the best traders of all time. You can spend a few bucks and learn from their mistakes.
# 7 Protecting the Emotional Capital
Many novice traders burn easily because they see results, because of their unrealistic expectations or because they lose so much money that they can not start over. The sufcient time to stay in the game, is a real problem for new entrants. Burning bills will cost you and your emotional capital and, finally, you will surrender. It is very important to understand that this is a long-term, you must first ensure that you have survived the sufcient and have learned much as you could. And do not forget to enjoy the process.
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