As we know that coin has two sides in a same way the trading also has two sides bad and good.
Today I want to discuss about the other side of the trading which is not discussed by other traders or the people selling the software’s of trading and also not discussed in any of the websites.
These are the things which I was unknown about when I entered the market and I faced them in my career.
I thought that I should talk about those five insight secrets of the trading with you all , which will really help you to know that what does being a trader means.
It’s not necessary to be smart for trading.
Many of the people think that you can only trade if you are good in mathematics or must have a college degree, that’s really not required.
Many of the successful traders are those who had never been to college or even schools , so it’s not necessary that trading is only for those who are educated well enough.
You should be just patient and know about how to control your emotions with regards to money involve in the market.
Be practical in your thinking , you don’t need to be scientist for becoming a successful trader. Have the basic information about the trading in market that’s enough.
Humans are actually not good in trading.
There are some traders who are really good traders compared to others , this is because of their difference in thinking , having more self control and also control on their desires.
But other than those all are having only one kind of tendency to earn more money , this is the reason which leads them to fail in the market and not becoming a successful trader.
We are one kind of animals , only difference is that we are more developed and have a well develop brains to think.
Most of the traders don’t take any kind of efforts to think. Animals run behind the food and we humans run behind the money.
We do get involved in the trade but our mindset is such that it keeps on worrying about money untill its safe with you again.
But we need to understand that time has really change and if you are making money with the help of advanced technology by just sitting on your PCs you need to take risk.
And taking risk is the opposite behavior to the natural human behavior so that’s why humans are not really good at trading.
Don’t calculate reward in percentage.
You should not calculate your profits in percentage as in trading the percent has many other meanings also. It’s not important to know the returns in percentage.
Because one may say that his account has made 100 percent profit in a year that means it in a year his accounts money has doubled.
That may be due to reasons of getting involve in good setup or the even the amount may be too less in the account that has doubled.
Many of the traders withdraw their money from the account and only keep the profit amount in the account.
Many times even the withdrawal amount keeps on changing depending upon the profits and losses from the market.
The most important thing is to manage risk to reward ratio for each and every trade.
Need to give time to become a successful trader.
If someone says you that you can become a successful trader by installing the software is totally wrong , you can’t become a successful trader in a night.
You need to be patient and should not cross your limits of risking money as risking money is not going to earn you a profit.
You must be ready to give the time to market and must also be ready to work hard by not going against your trading plan rules.
Then only you can become a consistent profitable trader. Trading is not like job which gives you a fix amount at the end of the month.
In market you cannot be sure about the profits or amount you earn at the end of the day , so for that if you are completely dependent you can’t afford to make mistakes in taking decisions while trading.
To become successful trader is somewhat boring.
Trading is also a boring most often and you need to keep it boring because many of them assume that it’s really a joyful work which is not at all.
It’s a work which gives a duty to be patient, disciplined and following a trading plan etc. so it’s like a school with certain rules and regulations, excitement sometime and sometime boring.
You can say yourself successful traders when you don’t get discouraged on losing a trade and don’t get over confident on winning trades , then you are on the right path.
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