What does it take to become a Successful Trader
The Crypto and Forex Trading journey is not an easy road. If you go on social media platforms like Instagram, Telegram and the likes you will notice that a lot of traders will be showing of their brand new wheels, their mansions and some will be showing off their trading account balances. Then looking back at your trading history you will see that you make $100 profit in 4 days then on the 5th day you lose $120. S o you will be moving 1 step to the front side then 2 steps backwards.
A lot of traders out there are losing what they can not afford to loose due to different reasons. Some might get themselves into debts taking loans or borrowing from friends and make deposits, but they will lose that money. At the end of the day they will end up saying Crypto trading and Forex trading is a scam.
What is the First Mistake they Make?
I mentioned that traders go on social medias admiring certain traders and they get inspired then start trading. Imagine seeing someone saying i bought a Lambo with money from trading, obvious you will tell yourself that i can do it aswel and then you try to copy their trading style. Now you will be trading with pressure trying to be successful just like your idol. As a result you end up over trading, having poor risk management, over leveraging your account and trading every market and greedy will consume you.
Just because you are trading without a plan you end up doing a lot of mistakes and they will cost you a fortune. A lot of trader are poor now because they ended up doing things they were not suppose to.
I made the same mistakes when i first started trading and it costs me a lot and at 1 point i told my self that i will never trade again. I was impatient, greedy, i traded like um playing pacman and i blew so many accounts. I used to follow trading gurus but after i made my loses i told myself that i will never follow anyone. Each decision that i will make has to be my own not influenced by someone and if i make a loss i will know what went wrong.
How to Change your Trading Lifestyle?
In trading the first thing you should do is to change your mindset because mostly the mindset gets corrupted easily. Take trading as a business and make sure you have a trading journal and always check the economic calendar on daily basis before you start trading so that you know if there are any news. Always make sure you analyze your charts on a bigger time frame so that you see a true picture then take your time to wait for perfect entry points.
Big Account Size
About 75% of traders think that for you to make it in the trading business you should have a large trading account. It now depends with your mindset, if you are not experienced and if you can blow a $20 account you can also blow a $50 000 account. Once the account gets fat, you will be tempted to use a larger lot size and boom you get hit. If you are an experienced trader and well mannered with proper risk management you can make it as long you are trading in accordance with your trading plan.
Know the markets you are trading and get to know the volatility level so that you will not be shocked when you start to see fast moves. Last but not least, Start small but with a Bigger picture and make sure you make it a habit to withdraw profits. As long the money is still in the trading account its not yours because you can lose it any time and always remember that the markets doesn't belong to your ancestors.