5 things you need to know about trading

Currency trading has become popular as more and more people turn to the financial market for active or passive income. Getting started in trading is extremely easy because all you have to do is register on a trading platform and press the “buy” or “sell” button. Succeeding as a trader, however, is a different ball game.

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Most influencers and social media marketers never reveal the cold hard truths about trading. They ignore the struggles, difficulties and realities of trading and promise quick wins in a short time and with little to no effort. This perception misleads new traders and investors who are unaware of the nature of trading.

If you need to learn the truth about financial trading and investing, keep reading this article till the end.

1 Trading is simple but not easy

Forex trading is very simple. All you need is to learn a trading strategy and click on the “buy” or “sell” button. But it’s not easy because you have to spend time learning a profitable system and then spend even more time practicing, tweaking and customizing it. This can take up to a year or more, depending on the trader and the strategy learned. Also, the psychology of trading usually takes longer to develop. It is at this stage of development that most traders give up, even with the best strategy.

Of course, all you need to execute trades is to click buttons on your trading platform. But clicking the right button at the right time takes hard work and constant practice.

2 Forex Trading is a business, not a hobby

Forex trading is a business, and those who treat it as such are more likely to succeed. Forex trading is actually a full-time activity and one that can really make someone rich. Even if you are a newbie trader, you should still treat Forex trading as you would your traditional business or job. Most successful traders take their trading process seriously and spend time improving their results.

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For example, if you have a day job, you will do your best to show up every day and do whatever is required of you. This same attention and discipline should be evident in your attitude towards your growth as a trader.

Show up when you should, follow your plan, and practice as much as you can.

3 Trading is a numbers game

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Contrary to popular belief, the most crucial part of a trade is not the outcome but the execution and management. Professional traders find trading setups consistent with their trading strategies and execute trades without worrying about the outcome of each individual trade. Indeed, a profitable strategy can mitigate losses over time. Therefore, every win brings you closer to the next loss, and every loss brings you closer to the next winning trade. The goal is to trade without hesitation whenever your trading criteria is met.

4 Success is a personal journey

Every trader in the world is unique and you need to know which trading style suits you. A group of traders who simultaneously start learning the same strategy would consistently become profitable at different times. Indeed, many personal and psychological factors influence the results they would obtain. Don’t get distracted by other people’s journeys and be sure to focus on your goals. Do not compare yourself to others but try to learn and adopt the habits and characteristics of successful traders.

5 Psychology is just as important as market analysis

If two traders use the same strategy, their results will vary depending on many factors, but mainly due to the difference in trading mindset; business psychology. Trading psychology represents various aspects of an individual’s character and behaviors that influence their trading actions. The way you approach trading influences your engagement in the forex market and your ability to maximize your strategy. Having a good plan is good, but a solid psychology is even better.

Finally, learning to trade requires adopting a long-term mindset and a willingness to overcome the mental hurdles that most traders face. You can take a trading course and learn from a mentor to ease your journey. Make sure the person you are learning from has enough trading experience with a verifiable track record of profitable results.

Disclaimer: Cardano Feed is a decentralized news aggregator that allows journalists, influencers, editors, publishers, websites and community members to share news about the Cardano ecosystem. User should always do their own research and none of these articles is financial advice. The content is for informational purposes only and does not necessarily reflect our opinion.

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