A little not the most pleasant statistics, which you will not be told in advertising. If you engage in trading for 300 days or more, only 3% of market participants receive a steady income, and the remaining 97% safely drain their deposit. This is at odds with marketing stuff when you are promised a profit of $ 300- $ 1,000 per day, but when did you tell the truth in advertising?
To get into 3% of the lucky is not easy, but in practice it is real. As well as it’s quite realistic to make money simply by investing in bitcoin, cryptocurrencies, stocks and other trading tools. But in order to be a successful trader or investor, you must first take into account and avoid the following mistakes, which we will talk about in this article.
Who is in plus?
When someone tells you that trading or investing is just two buttons: “Buy” and “Sell”, and you will earn $ 300, or maybe $ 1000 per day, then show him these statistics, according to which only a small part of market participants consistently receive income.
Interestingly, the longer the period of time, the less successful traders. For example, those who traded from two to 50 days, of which 15% came in plus. It would seem that getting into these happy 15% is not so difficult. But if you look at the statistics of those who traded for more than 300 days, then only 3% comes in plus. Because it is one thing to successfully start on the market, and quite another to regularly conduct profitable transactions.
And note that in advertising you are always promised to teach how to be successful. But no one says that only 300 days will pass and only 3% will continue to receive income.
It doesn’t work right away
The first thing you should start with is to take off your pink glasses and understand that trading or investing is akin to starting your own business or at least getting a completely new job. Moreover, you still do not know anything about her and the income received depends entirely on your actions.
Therefore, the first thing you need is a certain starting capital. In the case of an investor, this is money that he can invest in various assets and live perfectly without them for at least the next year. For a trader, this task is more difficult, because this occupation is actually the main activity and therefore, in addition to funds for trading, he must also have a stock of finances in order to exist normally for the next few months until he learns how to earn income. First of all, it is important for the right psychological attitude, so that the first failures do not unsettle you, and you can calmly continue to work on the result, and not think that tomorrow I will eat and what to pay for the Internet.
You need to accustom yourself in advance to the idea that nothing will work out right away and this is completely normal. It should take some time until you find assets whose price movement you understand and can earn from this. For example, many traders in the stock market specialize in stocks of specific companies, for example, high-tech or oil producers.
And it is also quite skeptical about the first successful transactions. You know the example of a bad shooter, who accidentally hit the top ten the first time, and then he is asked to repeat, but he has no idea how to do this. This is to the fact that in no case can you catch the “star” and think that you have figured out the market and now it will follow your lead. This is completely wrong: those who think that everyone understands the market eats first. And here it is very important to be able to stop.
Workplace
If it relates to trading as work, then you need to equip this same workplace. Today you only need a computer with an Internet connection, the only question is where it will stand.
Option one - you work as a trader in the office, which implies cooperation with a company. The plus is that there is always someone to consult with and, most importantly, there is always a risk manager in the normal office of a trading company. And since you share not only profit, but also losses with the company, the risk manager is obliged to ensure that these losses are as low as possible. Therefore, he has the right to prohibit further trade if he sees that a person has begun to merge and has lost control of himself. Including a trader can simply be banned from trading today if, for example, he is very sick, but still comes to work.
There is a minus at the office, because you are comfortable trading in a team with any specific traders, but instead you are sitting next to unknown people, and he constantly gets questions. And the neighbor may just have infuriating habits, such as chewing on a pen or crunching fingers, which does not contribute to the working atmosphere.
For those who cannot concentrate on work when he is not alone in the room, the option of trading at home may be appropriate. And investors so almost all buy and sell assets exactly at home, because for them this is not their main activity.
But here, too, there are problems, for example, a cat requires that it be stroked, the daughter is bored, the wife asked for help for a minute and that’s all, a profitable deal passed you.
In this case, you need to distinguish between work and personal life, because trading is, first of all, a thought process that requires maximum concentration, and if relatives do not understand this, it is quite logical to rent a room where you can go as a job. This option has another plus in terms of what helps in the issue of discipline. After all, if you go to work in the office, then you have a clear schedule.
It does not matter whether you are a trader in the office or just sitting at home. It is important that conditions are created when you can completely concentrate on work and devote the planned number of hours to it.
Profitable Deals
An extremely important aspect is your health. In no case should you enter your account on the exchange when your mind is under the influence of something. For example, coffee. You surely heard the phrase, they say, you need to drink coffee and pack up, otherwise the work does not go. But this is self-deception, caffeine does not eliminate the cause of poor performance, which can be caused by the disease, because you didn’t get enough sleep, or you simply quarreled with your neighbor because he put garbage into the porch for the night. Coffee will only temporarily replace your sensation, and this will also affect decision making. At the same time, different things affect people in different ways, and for someone green tea, sweets or hamburgers can be such an inconspicuous drug.
And of course, the biggest stupidity in the world will be an attempt to conduct a deal on a drunken head. There are people who are firmly convinced that alcohol helps them think. To debunk this myth, let's talk about computer games. Everyone enjoys in his own way and this is his own business. But if you look at professional players in computer games, after all, as athletes, they don’t need to run and jump for real. However, they will never sit behind the keyboard while drunk, and most do not drink alcohol at all and are actively involved in sports.
The health of your body is the key to a quick speed of reaction and decision making. And for the trader, these skills are also extremely important, because the situation can change at any time. And if your brain is forced to be distracted by pain in the side, heartburn, lack of sleep or a heavy head, then the time to think about the next deal will be much less.
Ability to stop
Talking about the workplace, we mentioned the profession of a risk manager, who has the right to prohibit a trader from trading if he began to merge. But if you work on your own, then no one will stand behind you and give hints; you need to independently develop a system and designate red flags that you can’t enter. For example, it can be a certain amount, in case of loss of which you stop trading for today, the number of unsuccessful transactions in a row, or some internal factor. For example, the feeling that they no longer understand what is happening on the market.
How to become a successful trader
Every experienced trader has a similar line that he will never go beyond. Because then the state of revenge begins, when you’re not so much analyzing what’s happening as how you’re twisting yourself, that now I’ll definitely go for a plus ... And then curse for a long time and think where to get the keyboard instead of just broken.
The trading guru, those same 3% who consistently receive income, are able to stop in time and not turn into a catastrophe just a bad day on the exchange. Moreover, they carefully analyze each similar situation in order to find the reason and continue not to repeat such mistakes.