Trading is a business that requires no papers and you can do it at the comfort of your home. Even though it is easy to start it is not easy to be consistent. For you to be a profitable trader you will need a certain level of discipline among other things.
Most experienced traders would attest that success depends on many factors including hard work, research, planning, discipline and being a lifelong student of the markets. As with many businesses, there are certain principles that, when followed, can greatly increase the chances that a trader will be successful.
Treat trading like a business
As a hobby, trading quickly gets expensive: Just dabbling can prevent traders from gaining the proficiency and experience they need to become consistently profitable. As a job, trading can be discouraging because there is no such thing as a regular paycheck: Traders can work 10-hour days all week and end up empty handed on Friday. Rather than thinking in terms of a hobby or job, it is important to approach trading as a business.
Like any business, trading incurs expenses, losses, taxes, uncertainty and risk, and these factors must be taken into account. The key to developing a successful trading business is good planning, both for the overall business and for the actual trading. Traders who want to weather the learning curve and stay in the industry for the long haul will put in the time and effort to research and develop strategic plans that encompass short- and long-term goals and the details of trading: What will be traded and how it will be traded.
For you to keep the profits coming you need to know what the big shots are doing. This means that you have to keep on learning. You can learn more by attending webinars or even join a class.
Brokerages and trading platforms often offer free webinars, featuring leading market experts teaching new skills and strategies. Benzinga recently spoke to Mike Sedek, chief retail officer at online brokerage Lightspeed Trading. Sedek’s team is preparing for a webinar on Tuesday, November 27, dubbed Becoming a More Successful Trader. “People who apply the strategies that they learn in a webinar and see their portfolios grow will be more likely to sign up for a Lightspeed account,” figures Sedek. It’s a great deal for traders, who can learn tips that will boost their portfolio’s returns for free. From now until the end of the year, Lightspeed is offering commission-free trading.
Enroll in Open Source Finance Courses
A strong background in finance will be massively helpful for becoming a better trader. There are no excuses not to learn the intricacies of how markets work, as free online courses from some of the world’s best universities are abundant. Online education websites like Coursera, Academic Earth, and MIT OpenCourseWare are revolutionizing the level of access that people have to world-class educational content. To improve your financial knowledge, Benzinga recommends classes from prominent financial minds like Yale’s Robert Shiller and NYU’s Aswath Damodaran. Khan Academy is an excellent resource for more introductory level material on finance and economics.
There are also certain truths that you have to accept if you are to be a good trader. You must first of all be certain about what you want to do and believe in yourself. This trade is something you improve in with time.
FIRST: Accept the fact that becoming an accomplished Trader means getting a PhD in ULTIMATE SELF. Those of us who have multiple college degrees and have mastered multiple professions will attest that these accomplishments came only through dedication, perseverance and hard work. You are on a journey of perfecting yourself into becoming A Disciplined Human Being. It is not something that can be done in a few weeks or a few months. It can only be done through hard work, self-reflection, and a willingness to succeed. There is no-one to monitor your progress, to ensure you are doing your work, or to grade your results! There is only you.
SECOND: Identify and eliminate your trading addictions. Look in the mirror and identify your weaknesses as a Trader. Are you trigger happy? Are you constantly modifying a great strategy therefore rendering it completely useless? Are you moving stops because you know that you are right and the market will respond to your telepathic guidance? Are you still spending a fortune on indicators and software because you believe that’s where success lies?