A lot of aspirants out there believe that anyone can trade and that it does need education in order to master it. Many also think otherwise. They believe that trading needs to be taught either by a second party or on their own but it needs a huge amount of work, knowledge, and discipline in order to gain consistent annual profits. Here are points that can help you towards becoming a consistent and lucrative trader.
Learn to accept losses and be humble when you win. In trading, losing is a natural phenomenon. This can happen all the time which is why you have to practice controlling yourself and not dwell on it when it happens. Most traders who cannot get over with their losses end up failing. On the other hand, those who know how to embrace failure end up learning from their mistakes and succeed with their trading goals. Now, how do your losses help you achieve your goals? When you look at your journal and you will see that you have been successful in most of your trades thereby allowing you to have a promising trading income, then for you to get that income you may also lose. Trading is balance of winning and losing.
Analysis and trading have huge differences. It doesn’t that some trader can call the market’s direction with higher success levels that you can already trade well. It’s all about timing, then strength of moves, risk and reward, capital, greed, fear. All of these elements are activated when you trade. But they are not so vital when you make market calls.
Get ready for success and embrace it. Just like in any profession, you have to gear your moves towards success and when it comes, embrace it well. This can actually be taught. Put in mind that there is a great distinction between wanting and accepting something. A lot of traders crave for success but they are lack the acceptance of their responsibilities that includes mastering emotions and using strategies efficiently to extract its utmost market possibilities.
Teach a man to fish and you can feed him for a lifetime. This is a part of a famous quote that can be very much applicable to learning in trading. It is basically possible to teach anyone how to become traders. Although not everyone may succeed after learning trading but knowledge is already there. The understanding of a fund manager may be different to that of the understanding of a medical doctor who wishes to trade.
Never compare yourself to other traders. Telling yourself that you are less bad or good is not so helpful. Taking pride or bragging over a successful is not also that helpful for your future trading schemes. When you trade, make sure that you do it with conviction. The results you get are specific to you. Being happy with your results is what matters most. Never let another trader set the bar for you.
Trading is greatly psychological. You may have followed many strategies online and they may have worked well. However, this is not the case with novice traders because they have too much to lose and they would always presume that one strategy after another does not work. They practically look for another strategy or system that may work well with them. A huge part of trading psychology is understanding the fact that winning almost always comes with losing.
Finding the right tool. Your skills and even attitudes can be enhanced with tools that can enhance your focus on trading. These tools include neuro-linguistic programming, meditation and many others. This actually means that anyone can become a good trader but at a certain point trader have to look out of the market to look for tools that they need for success.
Two moments are never the same. As a trader, you may have learned how spotting trade patterns and set ups and then act on the, the sad thing is that a single set up never looks the same as another one. Moves can be smaller or bigger and contexts are very different. Good traders know these facts and they act regardless of such differences. New traders sometimes freeze and do not know their next moves. Novice traders also think that they can just have random trades at any time since they are the same. Good traders accept uncertainties. On another note, unsuccessful traders look for certainty almost all the time which is not actually there at all times thereby squandering opportunities provided by uncertainties.
Learn how to implement your trades. Implementation is execution and the evaluation of how much you learned from your trading education. Besides having a good mind set, self awareness, and knowledge for successful trading, you also need some physical concepts. You have to know how to implement trades the right way. A recommendation would be, not risking more than one percent of your capital on your trades. This shows that you need the right amount of capital for a minimum of a hundred trades with your personal risk level. A lot of aspiring trader trade with very little capital and too little time to give trading a chance to prove itself worthy.
Confidence is the key. When you are confident about the tricks and strategies that you have learned and devised then you can overcome adversities and trade well. Although it will not immediately surface but it will come and all you have to do is have the patience and keep going.