Do you want to make a living through trading? You are definitely not the only one with this goal. However, the numbers say that 1% of the traders in the financial markets are the ones walking away with 99% of the profits while others are only forking over their money to these 1%. It can be downright annoying to not be able to make the kind of profits you want. Sure, you have to have reasonable expectations, but if it still doesn’t work, what should you do? Most people have no choice, but to quit because they just don’t have any more money to invest.
If you don’t want your hard-earned money to go to waste, you need to figure out what mistakes you are making and correct them to achieve the success you have envisioned. Is it possible to do so? Indeed, the 1% traders who do succeed are also human beings; they have just figured out the secret. Let’s take a look at what needs to be done:
- Maintain discipline
An important thing to remember while trading is that if you cannot be disciplined 100% of the time, then you are not disciplined. It is all or nothing. Every time you place a trade, you have to exercise 100% discipline because even breaking the rules once can spell disaster for a trader. It takes just one trade to wipe out all the efforts you have made, the profits you have earned. It is okay to act on your intuition, but not following your plan is a gamble and can put an end to your trading journey.
- Lose the right way
You have to understand that trading is just a game of statistics, which means nothing can be 100%. Every trader is going to deal with losses at some point and what distinguishes successful traders from the losers is the way they lose. There are some rules to follow if you want to be successful. First, you need to use stop-losses. Every broker worth their dime, including HFtrading, will let you set stop-losses. Secondly, you shouldn’t turn a winning trade into a losing one, just because you are too greedy. Last, you should never hold onto a losing trade for too long and add onto it.
- Find your inner personality
Trading gives you the perfect opportunity to find your inner self. The markets can drag you out of your comfort zone and expose your weaknesses and flaws. It is necessary that you match your trading style with your personality or else you will not be able to come out on top. Trading tests your emotions to the breaking point and your will power to resist is also tested. You have to have really thick skin in order to survive in the trading market. You will be held accountable for the trades you make.
- Think for yourself
One of the hardest things that people may have to do in trading is to learn to think for themselves. You shouldn’t let others change your mind or influence you about a position. Don’t listen to anyone else when you have made up your mind. However, this doesn’t mean that you make your decisions without doing any research or analysis. Study the market, consider the news, look at the market conditions, patterns and trends and then make your decisions. Take all advice with a grain of salt.
- Commit to learning
The markets are constantly adapting and changing and you have to learn to do the same. Before trading in a completely new market, you have to understand how it really works. You should promise yourself never to stop the learning process because new opportunities will arise as the markets continue to evolve. Brokers like HFtrading have made sure their clients are able to meet their learning goals by providing them access to a huge range of resources in the form of videos, books and tutorials.
- Be decisive
Nothing can be more dangerous for a trader than indecisiveness. Believe in your trading plan at all costs and if you have to, you can try it out through a demo account first to ensure it is effective. Experience can give you confidence and help you make decisions.