How to Become a Successful Trader. A Short Guide for A Beginner
All mass media, including the web, are full of ads about Forex trading. This opportunity seems to be very lucrative for many, but not many know what Forex is and how to work with it. Hence, what shall know a newbie who wants to start trading? Are there any chances to be successful? And how one can become successful?
I want to become a successful trader!
A wish is familiar to many. But not many are ready for that. And only some have an idea of how to do that. The web is full of information. Pessimistic – about trading, that brings nothing but disappointment. That Forex is nothing, but scam. And optimistic – stories about how people turned into millionaires by investing just a small sum of money that they have saved for that. (Attached are the photos of those people with their luxurious villas, boats, cars).
What do you like more?
If you selected the first option, then just live it. It is better to have some rest on the sofa. And please don’t forget to complain about the life, which is so unfair to you. But if you like the second option more… then, you will have to work hard. Then, after a while, you also will post your photos with luxurious things – yours, and not mounteded in a photo editor.
Then, let us start with work!
5 Ingredients of the Trader`s Success
- Background knowledge about the market
In the market, there is nothing to do without the knowledge about the market. First of all, your deals will not always end in profit. You will have to learn a lot about the market and factors that influence it, even though there are so many of them. Those are economy, politics, geography and plenty of others. But even that is not all. You need knowledge and skills connected with trading. Take Forex, for example. How to invest, how much and in what to invest? And what about strategies? It is very unreasonable to get acquainted with all that while risking your own money. Before you invest, you shall clearly understand where you are investing it. It means, to know the market and the principles of its work.
- The right broker
Now you can start. You know the basics and, maybe, even more about the market. You can make a forecast with accuracy. And you decide that you can apply your knowledge and start earning. You shall consider that it is extremely difficult to trade on your own. Hence, you must think about how to select the right broker. And here you again face with a complete mess. The web is loaded with broker offerings. And with absolutely different reviews about them.
How to select a broker?
Do not believe the reviews. Some will be paid by the broker, and some – by its competitors. This is without mentioning those reviews written by beginners who tried and lost. Pay attention to the licenses and permissions. If you don’t find any information about them, then you have no guarantee that your money is safe. The license means some protection for you.
Claims! If there are any, this shall be like a red flag for you. If somebody has already faced the problems with the broker, you may have the same problems.
You found your broker and opened a trading account with it. But don’t hurry. Don’t rush in trading immediately. Practice with a demo-account first. Many brokers offer such an option nowadays. There you can make deals, sell, buy, but without risking your money. Moreover, you can practice strategies that you selected for your trading, and check if they work for you. And only after you started earning with the demo-account, you can start with trading for real money.
You started trading. With your money. But even if you were earning with the demo-account, you still may have difficulties with the real trading. Here, the psychological factor will play its role. Risking virtual money and risking own money are different things, you know. But don’t give up immediately. Start your efforts with small sums. Learn to set limits both for the sum of profit and the sum of loss. And practice.
What do you think, how much time you would need to become successful? Say, in Forex trading? Weeks? Months? Can be, if you are a trading genius. But if not, you will need years. If all the above-mentioned things don’t frighten you off, you can start. And who knows, maybe, in some years we will be watching your photos with your luxurious things. Successful trading!