Being a profitable trader is the goal of every person who wants to dedicate himself to the world of investments. And it is not only about making more money but knowing what to lose is part of the process and that with practice and training, you can increase that percentage of wins versus losses. And for you to achieve it, I'm going to share some tips.
The beginning of a profitable trader begins with two factors: the mental structure to make good decisions with good psychology, and by knowing the structure of the market.
The mental structure is essential to start being a profitable trader. You have to build your mind from scratch because since we are born, no one teaches us how the bag works. And we must continually learn, study and train in order to build a solid structure on which we will work our operations.
Many traders start trading with a single knowledge:
"If you buy cheap and sell high, you win"
And it sure won't surprise you if we tell you that they end up failing or being abandoned after a few months.
Why is this happening?
Mainly due to lack of knowledge. If you do not know how the market works, you cannot see all the risks that are present in each operation, and if you are not prepared, it is as if you were throwing into a pool that could have a lot of water, little or no…. And on top of that, then you have to pay the medical bill.
Once you have the necessary knowledge and you are able to start operating ... Stop! There is still practice. There are brokers that allow you to perform operations in DEMO mode, so you can test all your strategies in real-time, without risking your pocket. These accounts are widely used by professional traders to be able to constantly learn about new markets.
Market structure: -
For a beginner trader, knowing the market structure, its patterns, and behaviors can be a task that takes years to consolidate. And every trade without a good strategy can turn into failure. But not everything is negative! There are ways to improve by learning directly from professional traders and copying them.
This is called Social Trading and Copy Trading, something that we explain later on.
Image Source -https://www.gotradingasia.com/forex-tips/5346-how-long-does-it-takes-to-be-a-profitable-trader
It could be said that the success of your operation is 80% in your psychology and decision making on it. The vast majority of people fail precisely because of this, not using a good strategy, not looking at larger time frames, not using an SL or setting it too low can make you make big mistakes and losses of capital. I can also tell you that although the demo version in trading can help you draw lines, trends, flags, triangles and these types of patterns, at the same time as indicators such as Fibonacci or others, I would not say that what is emotionally applicable is the same In a demo that is not your money than in a real account that is, at that moment fear, uncertainty enters and then you start to give your strategy a thousand turns because you think you have adjusted some parameter wrong, but no! you have to make a mistake and then analyze where the failure was and then repeat. It is clear that whoever tells you that to end up being profitable they have not lost tons of money at first is completely lying. In my situation I lost too much at the very beginning (greed, avarice,
wanting to grow the account too fast ..), I have always been more in favor of the fundamental or rather macroeconomic framework, better big trends than small ones. Greetings trader friend!
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