Trading is easy, and most of the time we make it hard. The thing here is when we know more it looks harder since we have different experience in different tactics and strategies that we do when we enter the market. Now we will show you the possible things you need to master and you need to take note for you to be a profitable and professional trader in 2 years.
Easy to say, hard to do. Everything we see in trading involves discipline, even the simple things like studying reading and working out. Discipline is the key to our success and if we do not have it we can’t do things that we like. When we say Discipline in the markets, it is referring to how you will stick into your trading plan. Let’s say the market is crashing, how will you act according to your trades? Will you open a same losing trade? Will you open a parcel? Will you just cut it?
People sometimes say to cut the losing trade short and keep the profits up to the moon but it is hard when you do not know what is happening to the market, especially if you are a beginner. You really won’t understand the dynamic support and resistance that much and all of those things. This is where your discipline to learn more in Forex Trading will enter. When you are committed to master the markets, even though you lose a few you can get it back in time, if you only have the determination to be a better trader.
This is also part of Discipline that I believe it deserves a separate subtopic. Risk Management is the king, and this is where business falls and rises. It is more like a double edge sword because if you didn’t use it well then you might burn your account and when you use it wisely then you could compound your profits up to the moon.
One secrets of the Profitable Traders are they know what they fits into their risk appetite. You can’t really say sometimes that maximum of 5 percent for the Stop Loss would work but I can’t say that the market is 50-50, and you can’t predict which one is wrong and which one is right, you can only trade what you see and pray it would go into your way.
Even 1 – 5 percent profit in a month is a good sign of a profitable trader already, especially if you are doing it for years. People like stability, and if you can do it on yourself then you can expect that the people would trust you for that, and you might have your own trading management company that would handle different accounts for clients, and earn a living.
This is the first mistake of every newbies in trading. They tend to check only the numbers of fundamentals in the week and not checking what is the current status of the country. It is essential for professional traders to see what is happening in the country for this week, from last month and from last year. You will never know on how the market behaves because the news can say that the dollar is strong but the market is going opposite, which sometimes called “manipulation”.
When you know everything about a current pair, you are not afraid on your trade if it goes on your way and you know where to put your stop loss orders and even the risk management.
If you are reading this and if you are one of the traders that loses in the market, it is okay. No trader is profitable from day 1, and it involves a lot of practice. Be grateful that you experienced it from the start because It won’t happen again to you [assuming that you learn your lesson]. This is the reason why trading is for the big boys only, because this is where people get molded, and people learn the hard way.
The Good news here is this, if you pass all of the struggles in trading, I can guarantee that you can compound your money in the value that you did not think you can have.