Trading is an attractive profession in which many people manage to realize themselves and make a fortune. You could see screenshots of the income of successful traders on the forums and in thematic chats, and you would like to repeat such dizzying achievements by your own example, but not everything is as simple as it might seem at first.
Beginner’s Path: Major Mistakes
A demo account is the first thing everyone starts with, but it alone will not make you richer or more professional. It will only help to enter the profession and cope with the first fears. Then you have to learn, apply knowledge in practice, and so on in a circle.
You have to get acquainted with complex terms, such as stop loss, support and resistance lines, forex live signals, etc. And then you will encounter the first mistakes:
Try to master a profession in 2 weeks or a month.
Study all free courses, go to webinars and buy lessons from those who earn not by trading, but by selling lessons directly.
Be nervous and try to “recoup” if several transactions in a row turned out to be unsuccessful.
Infinitely focus on indices, charts and forecasts.
Forget about discipline, financial and risk management.
Everyone goes through these difficulties, but the strongest reach the finish line in the form of large earnings.
What Should You Know about Profit and Loss?
Over time, you will learn how to keep the trading news tabs open and understand how to respond to them. You will know what to do in case of loss of a deposit and failure, and you will just as calmly react to a successful, profitable day, because you will understand that you need to analyze income at the end of a month or even a year.
Real earnings begin after you find out about it:
The main rule of money management in trading is to make transactions with the profitability of up to 5% of the deposit amount, and preferably 1-2%.
Making money is easier with a few thousand dollars. It is extremely difficult to increase profitability from $10 or $100. It is suitable for learning, but not for practice and not for serious profit.
If there are 2-3 unsuccessful transactions in a row, it is worth pausing in trading. So you didn’t understand the market, and now you’re going against the current.
Trading is a combination of knowledge, experience, deep analysis, psychological and even cultural subtleties. It shouldn’t be taken as a game.
Finally, it is worth understanding that there are no those on the market who have never lowered their deposit to zero. If your business has a profit to risk ratio of 3:1, that’s a great indicator.
Successful Trading is Work
Here are some more useful investing tips that will help you get into the profession painlessly: do not trade with your last money, and even more so do not take loans for this. Treat trading like a job: calmly and impartially. But while you are studying and the income is not stable, do not rush to quit your main job. Enter trading smoothly, calmly and with a wealth of knowledge and big money will become your new normal.