When it comes to trading first there is “understanding” before we begin the 5 keys steps. Let me assist you in understanding what will happen when you take on trading.
Trading is a challenge. Not a video game challenge, not a math test challenge – a *Challenge* One that will break you. Trading will break you mentally, physically, spiritually and financially. It is an eye-opening journey.
Trading will teach you a lot about yourself, and it will teach you a lot about discipline, patience and how you can analyze markets.
I saw a quote somewhere, it said trading: “Trading is the hardest way, to make easy money” and they are right.
You will be learning how to manage risk, control your emotions, understand your own decision-making patterns. These are all invaluable lessons for life, as well as trading.
Sounds great! But then there are the losses, what you lose to gain all this. Trading isn’t something that you can learn overnight – all those posts you see about a young 17-year-old “cracking the code” is rubbish. Why? Because they haven’t learnt life lessons.
You can make money fast, but you will lose it faster if you don’t know how to manage it.
Trading will drain every bit of energy out of you. You will feel like you’re falling behind, you will eventually collapse at every loss and become frustrated. The market will test you; the market doesn’t give a damn about you – you accept the risk when you take on trading and since you’re the one making the trades, it’s you VS you.
You’re testing yourself. You agree to test your patience, your confidence, your mindset. Doing so will make progress feel nonexistent or slow.
1) Prioritize Risk Management Over Profits:
Most newbies focus first on “making money” rather than safeguarding capital. The reality is that surviving in the market is way more important than winning every trade you see or come across.
2) Develop a trading plan and stick to it.
Random reactive trading is the best way to lose money. Build your plan overtime.
3) Master one market and one system first:
Beginners usually spread themselves too thin, trying forex, crypto, stocks and commodities all at once – Unfortunately for me I made this mistake at the start which made it very difficult! – Don’t do this. Stick to one market.
4) Understand the Psychology of trading.
Trading isn’t just numbers: as mentioned in “understanding” it’s a test of emotional control, fear, greed and impatience.
5) Prioritize learning. Then earning.
Beginners fall into the trap of trading being a “get rich quick” scheme. But the real investment is learning how the market works.