Trading is one of the most exciting and money making profession.As a new trader and hearing the success stories of few people making million in short time it is tempting to jump in as early as possible head first and seek out those high profits for minimal work.However, the truth is trading has also made more number of people bankrupt and many traders are have quit trading during the course of time.Therefore, rather than jump in head first as your instincts drive you to the fast gains, you should dip a foot first then gradually immerse yourself.There are a few things you really MUST do before you get into Forex/Stocks/ commodity trading in order to ensure your long term profitability.
In the market, you cannot rely on luck like when gambling at a casino. You need to deal in facts and market forces as they occur.Therefore, you need to acquire an education about how market works.
You need to know how to generate trade signals and how to interpret and apply them. Without this basic knowledge, you will simply be placing bets going with your gut, and that is not trading, it is gambling.
Trading Courses will enable you to know how to create a trading strategy that will work for you and give you consistent profits.
A good education will help you determine the best trade entry and exit points for your continued profitability.
2. Seek a Mentor
Learning about the market can seem overwhelming when you are new to it.It is much easier to fast track this learning process if you have a knowledgeable, trustworthy, and reliable professional to guide you.A mentor will help you quickly grasp the basics of trading and enable you to quickly advance in your education.Here i will emphasis Mentor does not mean taking trading tips, It means a person whom you can trust and has seen different phases of market.
3. Get Funds
To make money, you need to invest money. It is not advisable to use money you have set aside for other urgent or important functions for trading.Do not use money set aside for your primary needs such as your loan payments.Also please do not borrow money ie, personal loan etc. for trading.
Remember, just like most other business investments, the amount of returns or profits you make are directly proportional to your level of investment. If you put in very little, expect very little returns.So suppose your trading capital is 50K do not expect to make millions over it, trading in options 🙂
4. Practice, Practice, Practice
This is one of the most important things you should do all the time, even after you have become a full-time professional trader.Your learning never stops and you have to test all new knowledge to see how it performs when integrated into your trading strategy.
5. Define Your Strategy
To be profitable in the trading, you have to treat your account as a business investment.
Do not binge-trade or impulse-trade. You need a working strategy that clearly stipulates the market conditions that are necessary for you to enter a trade.Your strategy should pinpoint factors which determine your trade entry and exit points and the trade management tools you will use for each trade.The strategy should have risk management tools to enable you easily move on after losses and capitalize on your profit-making trades.