So You Want To Trade Successfully?
If you have clicked on this, then I am guessing you are interested in starting to TRADE. You have probably seen YouTube videos, or read eBooks etc. and you have seen how good a Traders lifestyle can be, and I am sure you would like the same kind of lifestyle. However, in truth only a very small % of Traders get to live life at that level!
I am not going to lie to you, it takes years to become a good Trader and to be honest the only way you are going to learn is by losing your money! “Learn to take losses. The most important thing in making money is not letting your losses get out of hand.” – Marty Schwartz
There are many different elements needed to trade and you have to learn to respect and master them, one being RISK. Risk is 100% the most important skill to understand and learn how to manage and it is by far the hardest skill to stick to. You need to plan your risk and not disrespect the markets; they will most certainly turn on you when you least expect them to. “Throughout my financial career, I have continually witnessed examples of other people that I have known being ruined by a failure to respect risk. If you don’t take a hard look at risk, it will take you.” – Larry Hite
Plan your trades; do not make a trade size that will destroy your account in seconds if it goes the wrong way. Personally I trade no more than 0.5 -1% of my entire account. That way my losing risk is minimal and fingers crossed with the right calculations and trade, the next trade will be a winner putting a smile on my face. “I’ll keep reducing my trading size as long as I’m losing… My money management techniques are extremely conservative. I never risk anything approaching the total amount of money in my account, let alone my total funds.” – Randy McKay
If you are losing a trade don’t keep piling more trades on top chasing a loss, praying to every god that’s ever lived to turn the trade around, this way you will lose everything. (Although hopefully you will learn a lot, like me) “The elements of good trading are: 1. Cutting losses, 2. Cutting losses, and 3. Cutting losses. If you can follow these three rules, you may have a chance.” – Ed Seykota
You are not going to get it right every time! “In this business if you’re good, you’re right six times out of ten. You’re never going to be right nine times out of ten.” –Peter Lynch
Even if you open an account with $1000 or $10,000 do not worry about how much you make at the beginning. Small trade sizes and small profits add up over time. When you feel comfortable take the next step up, the aim is to never lose what you put in at the start! “Don’t focus on making money; focus on protecting what you have.” – Paul Tudor Jones
Learn to love losing and learn from the loss, it will happen, just manage how much you lose by. Don’t let greed take over your trade, small and steady wins, – Unknown source , of the top of my head.
You should start with a DEMO account to get used to the trading platform you wish to use and learn how to make a trade. Demo accounts offer real time trading and are a great way to learn, however you have to treat it as real money and not place silly trades. I prefer to use IG as they offer a great platform with more markets to choose from than most other platforms. You can set up a DEMO account here
All thats left is to wish you Good Luck.. If you need help with setting up or would like a guided tour of the platform send me a message to email@example.com
Written by, Chris Wyatt – The30MinuteReview.com