How to become a winner trader?
This is the question of people just starting their trading career. How is that?It's easier to answer how to become a loser trader. About 90% of traders are loser traders.
That's the reality.
In the journey of being a serious trader there are many stages to follow and lessons to be learned.
First stage is learning how to trade ..
Second stage is the study of trading strategies and risk management.
Third stage is learning how to become a profitable trader.
There is no shortcut to this process. You cannot become a profitable trader, unless you are a good trader and know nothing of a trading strategy. How long does the learning curve last before you become a profitable trader?
I will be honest. It takes years!
1 year? 2 years? Maybe.
It depends on how determined you are.
He has been a loser trader for 9 years, and has been his only profitable trader during his ten years in trading. But if I were to ask you just my opinion. If you are only 3-5 years old then trade. I consider you a newbie trader.
Trader optimism
Let's take a look back at what a novice trader is experiencing. They have no fear of the market, they are thinking of making money, PROFITS! Buy low, sell high. Super easy!
First trade win immediately, screenshot of profit, then boom! Facebook post. I am the best!
Why should I use stop loss?
No one can stop me from winning. It's just so easy.
Hmmm, Little did he know that he had just won his first trade and won immediately. He can still win a few times that's normal. But the problem with this is that the newbie trader's confidence will increase, and this will lead him to the pit.
Trading losses could change the expectation
One of the best things to do with a newbie trader is to experience small loses right from the start. This will serve as a slap in the face, and he will learn to respect the risk associated with the market.
Trading is not easy
If trading were easy, everyone who came in would be rich. But the opposite. Because most newbie traders, who come in here have a false expectation in the market — or don't understand it at all. So before they even understand it, they already quit.
But if they can understand the market concept immediately and trading is not like any other profession. They have a chance, and they can go to the next process which is learning trading strategies.
Trading strategies
Let me clarify things about trading strategies. The best trading strategies in the world, will not be as effective as a courier or ill-prepared trader.
Can we compare it to a driver who has not yet mastered the vehicle after you propose a Ferrari?
What do you think will happen to the vehicle? Will this race be effective?
Of course not.
Same thing with trading strategies.
So if you feel that the strategy you are using is not effective.
Ask yourself.
Are you a good trader enough for this strategy?
There are so many strategies spread across the internet. Some work for others, but not for you. Because every trading strategy has something to do with it. Does it matter to your personality? In market condition? In the time frame? etc.
So you should always ask yourself if you feel comfortable with the strategy you are using, and will not listen to what others are saying — because you have different people and risk tolerance.
A good strategy will work only to a good trader. Once you've learned all of these things, which is not so easy and doesn't count for years. You are not just about to learn how to become profitable traders.It is rare for traders to get here. Most of them are just up to the first stage.
How is that?
Each traders has a different perspective on it. But for me, the trader has consistently raised his equity.This does not mean winning trades, because it was impossible then.
A good trader always experiences a string of losses, but with proper risk management.
Even with more losses in trades when the sum between wins and losses is realized, there is still profit. And Equity continues to rise overtime.
Always remember, trading is a never ending journey.
A winning trader is someone who thinks that every trade is a transaction in a business. Some trades will lose but MORE trades will win.