In this articles I wanted to cover some of the keys to becoming a successful trader. By this time, I hope you understand that just like with anything else, you can’t simply create a trading account at a trading website and expect to make thousands straight away – Just like you wouldn’t be able to roll ten strikes in a row the first time you go bowling. To think that would be naive and completely unrealistic.
The first thing we need to do is to understand that financial trading is not gambling. You are not simply buying and selling assets at random hoping for the best. Anyone who does this will lose their money eventually. Before you do anything with your money, you should make sure that you have read at least a couple of basic guides so that you have the most useful information in your head when you start trading. Good places to start out is to read the articles on trading portals such as Binary Options PM, where there’s tons of information for the aspiring trader.
Of course, you will first need to decide what type of trading it is you what to be involved in. Some people prefer binary options, which I mentioned above, although the most popular form of online trading is Forex Trading, where you trade with currencies. In my opinion, both forms are equally easy to understand and get good at, it’s just a matter of preference, really. So start off by reading a bit about these two different forms of trading and then decide which one to go for. Of course, you could do a bit of both, but I would suggest to start off with one specific form when you are first learning.
The next step is to open up a demo account at a financial broker. What this is, is a normal account that has all the functionality of a real trading account, but instead of trading with your own money, you are using virtual money with no real value. This means that you cannot win nor lose, but it’s easy to get an overview on what you can expect when you start trading for real. When you see that your results start to improve on your demo account, the time is probably right to start trading with a real account.
The key here is to start off slow. You will soon notice that trading with your own money is a completely different ball game than trading with play money. Your judgment will be affected as your emotions will be much more involved, as you now know there is a possibility that you will lose the money you invest. Get used to handle this before you start investing larger amounts of money.
A common mistake at this stage is that traders stop reading and learning when they have learnt the basics. However, if you want to become really successful at trading, you have to continue learning as long as you trade!