Advice for new traders and What does it take to be a successful trader?
I started trading in January 2010 with the attitude as most new traders. I believed I could double my capital in no time and gain the financial independence that I was seeking, after all, it’s straightforward right: purchase low sell high, ‘WRONG’. As I was dreaming about my financial freedom my account was dwindling before I knew it. I was down 25%.
Now looking back on those short months, I asked where I went wrong. Because I’ve studied the market, different strategies, the Greeks, when to entry/exit, trading psychology, the importance of a plan, paid advisory services, and read a lot of horror stories about people blowing out their account.
It’s not how much we know that makes us successful, it’s how we apply the knowledge we have that makes us a successful trader.
So what will it take for me to be successful? Well, when reviewing all my trades, my thought process over the previous few months and identifying crucial mistakes. My plan to flip this business around was straightforward, however, one of the toughest to follow. For me, it’s simply following my set-up. For whatever reason, I haven’t and I was down 25%. (Not saying it would have been different). Why haven’t I followed my plan the procedures I’ve laid out to give my business the best possibility of success? Well, perhaps it’s an absence of confidence, inexperience, the worry of losing, maybe somewhere deep down inside there’s a fear of being successful (now that’s deep) but who knows.
My advice for new traders
-Realize this is a business.
– Have a Trading Mentor
-Choose a proper instrument to trade
-Choose a strategy
–Know your Limitations in trading
-Create a plan and follow it. (Read how to make a plan)
-Paper trade until you have got confidence in your strategy and trading plan
-Keep a trading log (Read why keep a trading log)
-Start a journal
I’m certain a lot of may be added to the list. You can read more advice for new traders on this website.
Take some time off to review your goals, plans, yourself, build some confidence and come back with a new attitude, more control over your emotions, more focused. I know you can be successful in this business; you just need to “KISS”. Keep It Simple and Sequential.
Take your time paper trade for a while, the market isn’t going anyplace and once you’re ready when you’ve proven to yourself that you can be successful in a paper trading account then go live with it. One last thing, Treat your paper trading account as if it’s real. It’ll mean a lot to you.