Entering into the world of trading can be an intimidating and challenging process for someone who doesn’t have any experience in dealing with financial markets and speculation. When you first start researching the steps involved, adapting to all of the new concepts and terminology can feel a lot like learning a new language.
While reaching your goal of becoming a successful trader will require some hard work and diligence, with the right guidance and a well-rounded approach you could be making a decent income with trading in just a few months’ time. With that said, here are 5 things you can do to heighten your chances of becoming a successful trader as quickly as possible.
1. Be Immersed in the Learning Process
Knowledge is quite literally power when you’re making trades based on speculation. To become part of the group of traders that regularly succeeds, you need to become almost obsessive about learning how to trade effectively. Allocate a sizable portion of your day to studying eToro guides and other comprehensive online resources dedicated to trading.
2. Disciplined Scheduling
Procrastination and poor scheduling is your enemy when you’re trying to assimilate information and gain experience. As a novice trader, you’re at the disadvantage of not having the expertise and capital needed to make the kind of major moves that more established traders are capable of. Thus, you have to be serious about sticking to a schedule if consistent; ongoing success is your aim.
3. Practice Using a Demo Account
Virtually every reading platform will provide a demo account that you can use to make simulated trades without actually putting your capital at risk. These accounts are ideal for beginners who want to learn the ropes without losing money in the process.
4. Adhere to a Trading Plan
There are several different approaches to trading, so it’s wise to become familiar with the main strategies and to try them all out to gain experience with each. For example, one day you could try playing the role of a positional trader, and then the next you could test the waters as a swing trader or a scalper. It’s best to try these strategies for the first time using a demo account.
5. Use Risk Mitigation Strategies
Study risk mitigation and learn how to apply preventative measures that keep you from losing or risking too much within a single day of trading. As a rule of thumb, you should never risk more than 2% of the margin in each trade. You should also set stop losses for all trades, and refrain from letting emotions influence your trading decisions.
Becoming a Successful Trader Is Doable
In conclusion, while the majority of novice traders wind up giving up before developing a strong enough skill set to achieve long-term success, those that do persist are able to enjoy the benefits of being a successful trader. All it takes to be part of the winning group is to remind yourself that it’s not only possible, but inevitable if you stick with it and continue to study and implement the fundamentals.