And the quote in the picture is giving you the clearest answer there is – DREAM BIG, WORK HARD. Hard work, dedication, practicing on demo. Writing down your thoughts, someone else thoughts, writing down your analysis, or making a To-Do List(one which will tell you when to enter and when not to enter in a trade).
A lot of things need to be done before actually placing a trade. Don’t get me wrong, clicking on Buy or Sell, doesn’t take you longer than a fraction of a second. But that’s not trading, that is gambling. Lots of ”traders” don’t want to do their homework and prepare properly for trading.
They all dream about a big house, a new Range Rover, or a yacht. But when it comes to doing the hard work in achieving their dreams, well, they fail to. Why? They realize that trading is not that easy and it actually takes a lot of work for a person to be successful at it.
And now we come to the successful part of the equation. We are not the same, and we define success completely differently. If you ask me, for example, my definition of success is working what you love to do, have more free time for your family and friends, reading a lot, and learning new skills and languages. For some of you, success is making lots of money, being respected in your society, etc. And there is no wrong answer in this, we all define and try to achieve our own success and in our own way.
What do you need to become one of the successful ones?
Actually, not that much. But you still need to put the hard work in first place, and practice, practice, practice.
My kind of To-Do list for some beginner traders and how they can gain some advantage over other beginner traders will look like this( I will go deep with the majority of points written below in the future, stay with me).
First and foremost, where and from whom you are planning to learn this business? What will they focus on when trying to teach you? What do you want to achieve from their course/book/blog/vlog/material? Always check who are you trying to learn from, it’s not that hard. For example, our students have insight into our Live accounts and how our approach to trading and analysis work. I love to show them my negative trades, they teach the best lessons out there. For free.
2.Trading Plan *
Consider this one as one of the most important parts of your trading journey. Your Trading Plan is your Business plan. Wise Traders always have their trading plan next to them, if you ask me I know mine from point to point.
I will not cover this now, I plan to write an article only covering the Trading Plan itself since I think that is one of the most important parts of any beginner trader’s journey.
- Trading Strategy and Demo trading*
Every new strategy we come across, we tend to demo trade by doing well-known forward and backtesting. My personal opinion is that every strategy being demo traded needs to show a profit after at least 6 months of usage for it to be fully implemented and used into the live account. I know, 6 months is a lot of time. How did your last Live trading attempt go out? Get the point now?
- Money and Risk Management *
Part of the successful equation which can either make you famous or bust is Money and Risk management. You can not expect to open a 0.5 lots position with a couple of hundred dollars balance on your account and pray for the best. Nah, don’t do that to yourself. You deserve better.
The Great Bruce Kovner quote explains it all. He is what I consider a Wise Trader, what a great man.
- Journaling your trades and tracking your progress*
Yes, the part I love doing the most. I am literally writing every thought which crosses my mind trade-related. Every little piece I read, hear, or think of is put on paper.
My trading journal is full of explanations and screenshots of my trades. Why I entered the position? Why I exited? Where was my Stop Loss set? How did I feel before putting the trade on? How did I feel after it? What can I do better next time and what will not be done next time?
This 5 points on how to become Wise Forex Trader are points which if used and worked on properly can put you ahead of competition for miles. Lots of traders don’t wish to do their homework, this is why every brokerage company has a disclaimer stating that almost 90% of retail traders lose money.
Don’t be like the 90%, work your ass of. I know you deserve it, you know it as well. Just go get it!
I am sure you have noticed * in some of the sections I covered, don’t worry about it. All the sections labeled with * will be written about and explained deeply soon.