To become a trader you need only two qualities: 1. to know how to handle stress; 2. to be good in math.
You will handle your stress only when make trading not emotional, but profitable occupation.
If your definition of trading can be described with words: "genius" transactions, magical prediction of events and billions of dollars' – it will be hard to become successful trader, better try your talents at the movie plot writings.
Only when your psyche is ready to accept definition of trading as statistics, theory of probability, the calculation of risk and psychologically difficult, tedious following of the strategy – you are ready to try.
Usually,
algorithm of obtaining of any profession looks simple: get the
knowledge, and then get the experience. In trading it is vice versa:
people jump into practicing and after first loses start to learn how to
make this occupation profitable. The biggest mistake and time killer for almost all beginners is to follow balance all the time.
I agree, this is fascinating spectacle to look at changes of you
deposit: reduction, growth, reduction, growth… again and again,
hypnotyzing. But in fact, it doesn't affect the results!
If you are
beginner and reading these lines now – close the tab with balance and
return to in only when you need to place orders. Only when trading stops
to be emotional occupation we can start to talk about results.
After
passing through emotional gates of trading successfully you will be
able to start thinking about strategy. Often happened second step is: instead of staring at your balance changes, you are wasting time in searching of best strategy.
You spend time at forums and with testing of bucket of strategies
instead of choosing few which are working in your case and learn about
them deeper.
The successful trader trades on several time-tested
systems, agrees for certain drawdown and doesn’t try to find a new
strategy every day. If you are a system trader then all you need is just
follow your strategy. And then there is no sense for you to run browser
and read tons of analytical news.
You need to ask yourself
honestly: If I have enough knowledge in trading to compete with
successful traders, banks and funds? Next question will be: from where I
get this knowledge? The common mistake: most traders are reading
forums! Nobody wants to read and understand the tedious books! But at forums and blogs are time killers too! Bloggers simply tell how steep they are, praising theirs profitable transactions, etc. Can you apply it in your strategy?
There are luck of professionals at forums, mostly cubs; because professionals concentrated on results, and what kind of results few hours of posting and reading comments can bring?
Jumping into trading, please, remember one thing: perseverance makes from just trader a successful trader.
Don’t give up trading with words "trading is a scam", better look for your mistakes and correct them. Perseverance takes time, analyses of mistakes also takes time. And this time you can save avoiding of most common time killers in trading.
