When a beginner in trading begins to work, I am always surprised with his naivety. Why does a man who has just started to learn the profession immediately expect great results? Do you really think that the market is a money tree that you just need to shake from time to time, sipping martinis while lying on the beach? No. This is as hard as any other activity.
Just as if you were an accountant, an architect or a programmer. Have you ever heard of something like this: “You will become an architect, will design the houses, lying on the beach. You’ll also earn good money. Anyone can design a house, it’s very simple. On our 2-week courses, we tell you how to do it. ” It sounds as delusions. However when people talk about trading, then for some reason all agree that this is real. You can complete 2 weeks of training and shovel up money from the market. The question to you: where are all the old traders now? After all, most rich people then have to be traders, but they are not so much.
The second thing that always surprises me is broker’s unselfishness. A newbie usually passes free courses from his broker, takes his free program for trading and heeds the advice of analysts. Now ask yourself the question: Is your broker a charitable organization, for which your earnings is all above?! If you really think so – stop reading further. This article is not for you. But if you do understand that the broker should make money – answer to the second question: whom will the broker cash in on? Of course on you, my “naive future Rockefellers”. Namely you are a supplier of money to the broker. Thanks to you, he has a large staff, developing a “free software” and providing “valuable free tips”. They’re just making money on you. And you need to understand it exactly. And look at the business of brokers in such a way. When you follow the signals of a broker or put your money in the PAMM – accounts with a 100% yield per month. Ask yourself: why doesn’t the broker do this by himself? But do not believe in any nonsense, such as :”it is only for customers” or “we put a part of our money into it also”. If these investments were so reliable, any, I repeat, ANY MAN, who would have invested thousands of dollars – would become a billionaire in a few years. So why the broker deals with such a boring stuff as working with clients, creating programs, not lying on the beach and sipping whiskey?! Because it’s not safe. While making money on newcomers and other traders is a reliable business. As one famous person said: «When I’m told of honesty and integrity, I usually check my pockets. Is my wallet there? ”
The third point is the approach to work. We need to develop such trading system, by which we could make money in the long run. Now again a question for you: beginners, how can you make money on the market? You need a unique approach. In order to find this approach you need 3 things: time, training, trading platform. First you need to find the trainers who will teach you how to trade. It is important to understand that they really know something. Maybe you’re lucky and you’ll find these at once, maybe you’ll meet charlatans or their trading method won’t be suitable for you. You immediately need to understand it. You need to learn. This is your investment. Сonsider the money spent on your studies as an investment in your future earnings. When you learn at the institute – you teach many subjects, which may never be useful for you. However you are wasting time and money on studying them. Why? In order to understand what you need or what you do not need. Moreover, it will take time and priorities can change. Studies, which you think would never come in handy, may suddenly become very actual for you. Therefore you need to learn – it’s a fact. The next thing is time. You must clearly understand and realize that you need years of training and experience. Namely the years. If you are not willing to spend the years – don’t even start. This is a waste of your time and money. Also, do not expect to trade from time to time during your lunch break at work or between classes while studying. It’s sure a path to defeat. The market does not forgive dilettantism. I’m telling you this for sure. It is simply a bet on luck. Better go to the casino. At least, they may give you a drink The last stage is a trading platform. You cannot win a major race, using a serial car. Perfectly this should be your personal, designed for your own strategy, soft. A little worse are the effective programs, which few people use. The worst option is free software from brokers. They have no advantages. Why a trading platform is so important. Because it gives you an advantage over others. You can see what others do not see, can act more quickly than others or better understand the market. Do not use the trading signals. This is a pig in a poke. You never know why they work or do not work. You will never become a pro, constantly using the other signals. You need to understand the reason for entry and exit. This is the only way. Rely only on yourself.
When choosing a platform, first see its differences. Design, speed, a different view of the market. Or just better graphics. I do not understand why people use several different programs, each of which follows the other. Software should complement, giving a certain advantage. There are excellent arbitration programs. There are good programs for options trading. They are not free, that’s why effective. But if you need the efficiency – see what exact software you need. Often, these programs offer a free demo access. Use your knowledge to test and choose the software that is best for you.
Finally. Trading is the same business as other. There are times of profits and losses. You should just be ready for it. But more importantly, you should understand that trading is always unstable. That is why many great traders are engaged in teaching and sales of various products. Not because they do not earn in the market. Just because this income is not stable. It is always better to make secure though not very big, but stable earnings. Then it is always easier to endure periods of losses. As you know, that no matter how the market will behave itself – you have an alternative source of income. In his book “Antifragile” Nassim Taleb described it well, that the balance between sources of income increases the psychological stability that in turn gives you more confidence in the future. It is well displayed in the results.
And lastly, the most important thing. The benefits of adequate expectations. Adequate professional trader’s return is an average 15-30% per year. Not 100% a month or 20%a day. In the long term it is ± 20% per year. If the percentage does not suit you – look at the winners of the Robbins Cup. (http://www.worldcupchampionships.com/live-stats-3) Unlike other competitions, the results are shown for the year. There are unique people that make hundreds of percent in a year. But you must understand this is an exception to the rule + streak of luck. On average, the results are much lower. Pay attention to the second and third places. They belong to traders with a yield of 20-40% and sometimes below. These are the winners! So here as well as in any business must be adequate targets. Otherwise – fast outlay. Draw an analogy: you have built to sell the best buns. You won’t put a goal to sell your buns exponentially, multiplying twice every month (unless you have not started with the sales of 1 bun a month )?! Adequate perception is also important here. In addition certain figures I showed you.
Now let’s summarize all:
1. You will need years trying to become a pro in trading.
2. Broker is making money on you. Always remember this.
3. In order to be successful, you need to: learn, time and trading platform.
4. For psychological stability you need to have alternative sources of income.
5. Adequate waiting.
6. Use volumetric analysis and platform Volfix
Good luck in trading!