The keys to success in trading

“This is the answer that a real businessman would give to the questions often asked by young people who would like to know how long it takes to have the good life, the style of a luxury car, a big villa, etc… Honesty therefore obliges the tradesman to give this answer, because in fact he cannot know. But to give you an idea, this is what you must first understand. On the road to success, a trader goes through four main phases which we will try to present to you here. 

First phase: understanding the basic functioning of the stock exchange

The stock market is a market known to all, but few participate in it. What makes the average citizen so reluctant to invest in the stock market is, above all, his lack of knowledge of the subject. He believes that it is probably a scam. But those who are tempted will first try to start with a demo account. At this level those who make easy profits on these accounts end up holding on to their heads and believing they are born traders. But, soon after losing half the investment, they realize that trading is not that easy. Of course we can make some profits by chance, but in the long run, if we don’t have enough experience, luck cannot keep smiling on us indefinitely. It is in drawing this bitter conclusion that we learn that trading is not based on sentiment, and that if sentiment wins out from time to time, it always ends up ruining us. After this first lesson, we are ready to move on to the second phase.

Second phase: studying the financial market properly

This is one of the essential foundations of trade. And in order to assimilate it well you have to work very hard and never stop learning. This is what it is to be a trader, it is a lifelong learning of this art that alone can make you a rich person. It will therefore be necessary for you, at this level, to learn the main lines (methods, strategies and types of market analysis, etc.) and gradually deepen your knowledge.

Be prepared to spend days studying these topics. It is not easy and you will no doubt begin to doubt your ability to learn. But we must not give up. Don’t let this get you down, try to have the necessary passion for what will be your livelihood in the future. Forget that you are doing it for the money, because you will see that there is a great sense of achievement just by learning things that we thought were too difficult for us. And before you know it, you’ll be past this stage.

Phase three: understanding the essence of trade

What can’t we acquire through theory? Of course, this is the practice and the conclusions that can be drawn from it. Make no mistake, many of the best traders never learned to trade in school. It was by learning on the job that these traders were able to access much more valuable knowledge than can be found in any textbook. One absolute truth that all traders in the world agree on is that the method we thought we would find, and which will always make us money on the stock market, does not exist in the real world. This is what we learn after a period of experience riddled with profit and loss. And that in the end, only those who have learned to read the charts well will be able to live from this work and make their dreams come true.

The most dangerous game for a trader will always be the relationship between risk management and the management of one’s emotions. The psychological aspect is undoubtedly the most difficult to master. To become a good trader, and even if it happens naturally in general, with experience, you will start to review certain techniques that you thought were obsolete, to reconsider your losing positions, etc.. This will help you to better understand how curves work. the terrain ! This will greatly help you to change or even improve your judgement about curves. Little by little you will be able to make better decisions when you have doubts in certain situations. However, to do that, you will need to learn how to deal with stress and especially not to be impulsive when investing. Therefore, you must accept both gains and losses. These are the two sides of a coin.

Fourth phase: making online trading a professional activity

Once you get used to operating, it will now be part of your daily activities. And after a while you will develop reflexes that will make this activity easier and more enjoyable. It will be one of those things you do without thinking too much about it, and you’ll never miss out on the obvious and easy-to-do gains. You no longer need to study hard to learn more, because what you already know can earn you enough. Now it’s easy for you to grow your investments without having to worry too much. There you go, you’ve now moved on to the last phase, the one that will allow you to make a living from trading!