4. Learning How & When to Take Risks
We all Remember George Soros, the billionaire who ‘broke’ the Bank of England in 1992, when he bet against the pound and made a reported £1.5bn. Learning how and when to take risks is a highly valuable skill which can pay dividends well beyond the charts. Trading is all about how you can handle leverage, if you have a high probability trade setup and you can leverage your trade keeping Risk reward in favor, Big money can be made just like George Soros did. hose who don’t take risks never get ahead. They live the same run of the mill life & never leave their comfort zone.
5. How to evaluate the risk vs. reward of anything
If you make it to the point of being a consistently successful trader, you will also most certainly be a master of determining the risk to reward of any situation, service or product. The mindset of a successful trader is one that is constantly gauging risk and simultaneously figuring out what the potential reward might be, to ultimately make a decision. This of course is necessary for trading, but it’s also a great skill to be able to employ in just about any other situation in your life.Most people would never go through this line of thinking. Most wouldn’t do the math, or particularly evaluate situations from a risk vs. reward perspective.
For example, let’s say you need to get a Buy a House. If you are thinking about the purchase from the mindset of a trader, you will carefully consider the risk vs. reward of buying a new House or staying in rented one. You will look for all pros and cons and amount of money which you will invest, the Kind of EMI you need to pay, more importantly looking for risk off scenario what if main source of income goes off. Through that process, you will probably come to the conclusion that Buying a House when you can pay 30-40% downpayment make sense instead of going for EMI’s and taking bigger loan. Not everyone thinks like this about every situation, but successful trading will ingrain this type of thinking into you, and that’s almost always a very good thing.
6. How to grow and improve as a person
The process of becoming a successful trader and the things you have to accept and change inside of yourself to become one, will ultimately lead to you become a better version of yourself. You will not find a lazy, messy, impatient and undisciplined person who is also a successful trader; that person does not exist. The end result, or perhaps the ‘side-effects’ of becoming a successful trader, are that you have true freedom, you have mastered your own mind, you understand the potential risk reward of any situation you may find yourself in and perhaps most importantly, you’ve become a better version of yourself.
7. The power of simplicity
Finally, perhaps the most life-changing thing that I learned becoming a successful trader, is the power of simplicity in not just trading, but all areas of my life. You will start following the KISS concept, Keep it Simple and Stupid .
Simple things when implemented both in trading and life can do wonders. Like following Simple Gann System can give more success than going and learning complicated set ups. You should check out my trading course because it is the best way to start learning how to trade with these proper habits and processes