Everyone want to make money. Altho there are a lot of ways, trading is the first thing that comes to mind for many people and I was one of them. I began trading in the stock market after I lost my job thinking it's simple. Clearly I was WRONG and learned my lesson the hard way after continuously blowing up my account. Here are some of the errors I reversed to stop losing money in the volatile market.
1. Do not attempt to make trading your primary source of income
I put all my eggs in one basket when I started off. Altho I had a little beginners luck, but that did not last me very long. I was over invested in the market, and this caused me to trade with emotions rather that trading my plan. If you know anything about trading, this is extremely dangerous. If you are new in trading forget about going full-time trading right away. You will not do good. I am telling you this from experience.
2. Always be sceptical of what you see and hear online
Here’s a rough statistic: 97% of traders fail. In my opinion, there is such a high fail rate because everyone does the same thing. Now there is so much content online for you to learn this new skill, its overwhelming. Most of the education providers teach similar strategies and technical analysis. To be successful in life and with stock trading, you need to start thinking for yourself. Sure, you can rely on all of the 'secret strategies' on youtube that comes out over time, but if all of it were accurate, don’t you think everybody would be throwing their money into the market to make money?
3. Learn from your mistakes quickly
Trading is all about learning from mistakes, start doing what works and ditch everything else. I wish I learnt this sooner. Even the best traders in the world make mistakes on a daily basis. But it isn’t about not trying to make mistakes. Instead, it’s about the knowledge they gather from their mistakes to prevent themselves from making the same mistake again that is critical to their overall progression.
It is extremely important to keep track of all your trades especially the bad ones. I started using a journal to track my trades and my results have improved significantly.
4. Stay out of the market as much as possible
"Less is more". When you are new to trading you can fall into the trap of trading extensively. I believe trading less is way more profitable than trading every day. I believe in quality rather than quantity of trades. Whole retail trading industry is built around message of “Trade as much as possible”, which I believe is a conflict of interest as this is how your brokers make their money.
5. Be patient. Good things take time
Trading is not get-rich quick scheme, so avoid everyone who is trying to sell you this. You cannot become a doctor, lawyer or an engineer within a week. So why do trader expect to become pros and make millions in a very short amount of time without putting in the effort and cutting corner? Trading is just like any other career, if you want to become an expert you need to put in the effort to gain knowledge.
6. Never give up
When facing huge losses, it’s only natural to feel a sense of doubt. But just remember those successful traders that you emulate and follow today. For sure, they had their fair share of setbacks early in their careers. They didn’t back down and give in into their doubts.
Please like and comment below if there is any other advice from you to all the beginners reading this post.
1. Do not attempt to make trading your primary source of income
I put all my eggs in one basket when I started off. Altho I had a little beginners luck, but that did not last me very long. I was over invested in the market, and this caused me to trade with emotions rather that trading my plan. If you know anything about trading, this is extremely dangerous. If you are new in trading forget about going full-time trading right away. You will not do good. I am telling you this from experience.
2. Always be sceptical of what you see and hear online
Here’s a rough statistic: 97% of traders fail. In my opinion, there is such a high fail rate because everyone does the same thing. Now there is so much content online for you to learn this new skill, its overwhelming. Most of the education providers teach similar strategies and technical analysis. To be successful in life and with stock trading, you need to start thinking for yourself. Sure, you can rely on all of the 'secret strategies' on youtube that comes out over time, but if all of it were accurate, don’t you think everybody would be throwing their money into the market to make money?
3. Learn from your mistakes quickly
Trading is all about learning from mistakes, start doing what works and ditch everything else. I wish I learnt this sooner. Even the best traders in the world make mistakes on a daily basis. But it isn’t about not trying to make mistakes. Instead, it’s about the knowledge they gather from their mistakes to prevent themselves from making the same mistake again that is critical to their overall progression.
It is extremely important to keep track of all your trades especially the bad ones. I started using a journal to track my trades and my results have improved significantly.
4. Stay out of the market as much as possible
"Less is more". When you are new to trading you can fall into the trap of trading extensively. I believe trading less is way more profitable than trading every day. I believe in quality rather than quantity of trades. Whole retail trading industry is built around message of “Trade as much as possible”, which I believe is a conflict of interest as this is how your brokers make their money.
5. Be patient. Good things take time
Trading is not get-rich quick scheme, so avoid everyone who is trying to sell you this. You cannot become a doctor, lawyer or an engineer within a week. So why do trader expect to become pros and make millions in a very short amount of time without putting in the effort and cutting corner? Trading is just like any other career, if you want to become an expert you need to put in the effort to gain knowledge.
6. Never give up
When facing huge losses, it’s only natural to feel a sense of doubt. But just remember those successful traders that you emulate and follow today. For sure, they had their fair share of setbacks early in their careers. They didn’t back down and give in into their doubts.
Please like and comment below if there is any other advice from you to all the beginners reading this post.