As you are about to venture into the financial world, it is important to keep an open mind and have the willingness to AKL (always keep learning).
Navigating the market may prove difficult for the inexperienced trader.
With that in mind, these are the things we wish we knew before starting our own journey:
1. Becoming a millionaire is possible. It just will not happen as fast as you think it will
The road to financial independence is actually very long and hard.
Young traders dream about making it big with only a few trades but as you learn the ropes, you will soon figure out that that may not be the case as the next point will show.
2. Consistency and composure matter the most
Making money in the market is something anyone can achieve.
Consistently doing so, on the other hand, isn’t.
The digital age in which we live in has given us instant access to financial markets.
This means that trading has been made simple in terms of the means in which it can be done, but it is hardly an easy venture for those who wish to attain a consistent income on the back of a steady stream of profit.
To achieve that, it is imperative that you do your due diligence, craft your own strategy, and stick to it!
3. It takes time to figure out what approach works best for you
There’s strategy and there’s style.
Finding your own trading style can take time.
Many young traders, for instance, make the grave mistake of confusing day trading with daily trading, only to see their money being chipped away due to poor planning and a lack of a consistent trading strategy.
The allure of the fast-paced financial world is surely there.
Moving money around from stock to stock has a great feeling to it, but it is important for traders to find what suits best for them (and only them), what works and what doesn’t.
By figuring that out, trading will become a much simpler and easygoing process.
4. “We become what we repeatedly do.”
Trading is an ongoing process in which the trader must aim to be a better version of himself every day.
Trading, as it turns out, is a very personal and profound journey.
It will take you to the edge and go to the extent of revealing character flaws, it messes with our confidence and occasionally makes us doubt ourselves.
Every lesson learned should present you with the opportunity to overcome your failures and grow as a trader and as an individual.
A good trader will unequivocally be someone whose habits are also good.
5. You should plan your trades ahead, but you should also plan your expectations
Having a successful, tested, and well-oiled process will be far more important than tunnel visioning a specific outcome on a trade.
The harsh reality is that we all experience losses at some point, but it is very important that as you go into a trade, you understand exactly what you are risking and what you might be about to go through.
6. If there is a boogey man, it is definitely not leverage
People will often make leverage something that it is not.
Risky as it may be, remember that leverage actually works both ways.
It is a phenomenal tool which when used right will put you the fast track to higher gains.
What should concern new traders, in reality, is the often overlooked psychological aspect of trading.
Trading will put you to the test in terms of patience, composure, and resolve.
If you want to be at the very top of your game, you also need to be in total control.
7. You don’t need an enormous amount of money to begin your journey
To become a trader, you don’t necessarily need thousands of dollars in your account.
In fact, you can start out with a couple of hundred dollars and still find your way towards financial independence, as long as you have a plan.
Keep in mind that a successful trade does not a successful trader make.
Consistently repeating successful trades will give you proof of an iron clad process and remember: small wins do count and they add up very, very fast.
Wrapping up
As former United States Senator Chauncey Depew once said:
“The first step towards getting somewhere is to decide that you are not going to stay where you are.”
Your own path lies ahead of you and we hope these 7 tips will guide you in your first steps.
