Are you ready for trading?
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Trading is attracting more and more individuals to the financial markets. Quite often, this experience ends in failure and loss of capital. That's why, before you start trading, you need to know if you're right for trading or not. There are several questions you can ask yourself to help answer that question.
Novice traders often ask how much it is possible to earn with trading. Before thinking about possible gains, it is essential to think about losses. You need to determine how much you are willing to lose. It should not be forgotten that trading is a risky investment activity and that during your training period the risks of loss are significant. There is often a price to pay to be well trained in trading, a price to pay for experience. I don't know of any trader who has never razed a trading account in their early days. I razed several of them.
There is nothing wrong with losing money on the financial markets. The important thing is to lose what you can afford to lose. By that I mean that you should never, and I mean never, risk all your savings in trading. By doing so, you endanger your future, your standard of living and it can also have serious psychological consequences.
Before you start trading, you must determine in advance an investment amount that you should never exceed. It is very important to fix this beforehand to avoid being influenced by your emotions after a loss. If you reach this threshold, you don’t replenish your trading account, you stop everything. Don't even continue to trade on a demo account as that will make you want to deposit more funds.
To give you an idea, I believe that an individual should not invest more than 10% of his savings in trading. The only thing that allows you to deposit more is a winning strategy that has been tested over at least several months. Otherwise, never deposit any more money. I advise you not to deposit everything when you make your first deposit. Always leave yourself something in reserve. Demo trading has its limits, it does not confront you with your emotions. As a result, the day you go live, even with a good strategy, you can be taken by surprise.
If you can't save or you only just make it to the end of each month, don't try trading. You have much more to lose than to gain. Trading with money you can't afford to lose is crazy. You have no chance of succeeding in the financial markets.
At the risk of disappointing more than one person, no one has ever been able to win in their trading after a few days of training. I know we see a lot of tempting advertisements about this, but you should never be fooled. A salesman (of a broker) or a trainer who leads you to believe that at the end of his training course you will have the keys to becoming a winning trader is nothing more than a con man, a pedlar of dreams.
Trader training takes a lot of time. Once you have a good strategy, trading activity does not necessarily take time (a few minutes a day may be enough if you are trading on long time units) but on the other hand, training is long. It requires a lot of patience.
You can hope to start earning after a few months at best. For most people it can take one or more years. After that, it's all about the time you're willing to spend trading. As in all fields, the more you work, the faster you progress. There are always the smart ones, stronger than the others who are happy to shout loud and clear that they have doubled their capital in a week, or even in a day. Anyone can doubling their capital but the hardest part of trading is not winning but lasting. (Notice that you never see the smart guys again a few weeks later, which is normal, they razed their trading account because of non-existent risk management!
Firstly, you have to learn the basics of trading. This is the technical knowledge required to succeed in the financial markets. You learn chart patterns, resistances and supports, Japanese candlesticks, the main technical indicators, etc. Don’t think that there is an enormous amount of information to be ingested. No, the basics can be learned quickly for anyone who wants to learn them. Novice traders often make the mistake of getting distracted from their training and start searching for trading martingales, miracle technical indicators, etc. Stop believing in Santa Claus! If all experienced traders use more or less the same trading tools, there is a reason. So just stick to these elements, the ones you can find on any trading site.
What takes time is learning to control your emotions. Opening a real account awakens your worst instincts. To control them, there is only one solution: imposing money management rules and refrain from breaking them. Successful trading therefore requires rigour and discipline.
What also takes time is finding the right trading strategy. The right strategy is not just a winning strategy, it is a strategy adapted to your investor profile (trading style, risk aversion, time available, etc.). There is a lot of fine tuning to be tested both in terms of risk management and trading strategy. And to test each variance takes a long time. The important thing is always having a line of thought that can be developed. To help you find inspiration, read the training pages, look at other traders' analysis (without copying them blindly, etc.).
If you're here to burst the bank in the shortest possible time, then move on. Go to the casino, at least that means that we have real statistics on the number of win/lose traders in the financial markets. The financial markets are not a giant casino. Trading is a school of small profits. If you can't conceive it or you're not ready to hear it, don't trade.
Can you make a living from trading? This is a utopia created by a few trainers or brokers. Among successful traders in the financial markets, very few make a living from trading alone. To live off it, you need at least €200,000 to €300,000 in capital and you need a strong mind. Most people have neither. Don't think that living off trading is easy even if you have the money to try it. You have to be able to handle the financial pressure, the pressure that at the end of each month you may not have any salary, or you could even have losses. To make a living from it, the taxation of trading gains also needs to be taken into account.
The best way to approach trading is to be modest and not expect anything from it. That's why the financial markets must above all be a passion, an activity that pleases you, that makes you want to learn. If you only see the money, you'll never make any. This is the paradox of trading. Those who succeed are those who do not think about money, who see their money as a working tool. Their objective is not to earn money but to last. When you last in the financial markets, you end up making money.
Are you ready to lose?
Novice traders often ask how much it is possible to earn with trading. Before thinking about possible gains, it is essential to think about losses. You need to determine how much you are willing to lose. It should not be forgotten that trading is a risky investment activity and that during your training period the risks of loss are significant. There is often a price to pay to be well trained in trading, a price to pay for experience. I don't know of any trader who has never razed a trading account in their early days. I razed several of them.
There is nothing wrong with losing money on the financial markets. The important thing is to lose what you can afford to lose. By that I mean that you should never, and I mean never, risk all your savings in trading. By doing so, you endanger your future, your standard of living and it can also have serious psychological consequences.
Before you start trading, you must determine in advance an investment amount that you should never exceed. It is very important to fix this beforehand to avoid being influenced by your emotions after a loss. If you reach this threshold, you don’t replenish your trading account, you stop everything. Don't even continue to trade on a demo account as that will make you want to deposit more funds.
To give you an idea, I believe that an individual should not invest more than 10% of his savings in trading. The only thing that allows you to deposit more is a winning strategy that has been tested over at least several months. Otherwise, never deposit any more money. I advise you not to deposit everything when you make your first deposit. Always leave yourself something in reserve. Demo trading has its limits, it does not confront you with your emotions. As a result, the day you go live, even with a good strategy, you can be taken by surprise.
If you can't save or you only just make it to the end of each month, don't try trading. You have much more to lose than to gain. Trading with money you can't afford to lose is crazy. You have no chance of succeeding in the financial markets.
Do you have the time and the desire to learn how to trade?
At the risk of disappointing more than one person, no one has ever been able to win in their trading after a few days of training. I know we see a lot of tempting advertisements about this, but you should never be fooled. A salesman (of a broker) or a trainer who leads you to believe that at the end of his training course you will have the keys to becoming a winning trader is nothing more than a con man, a pedlar of dreams.
Trader training takes a lot of time. Once you have a good strategy, trading activity does not necessarily take time (a few minutes a day may be enough if you are trading on long time units) but on the other hand, training is long. It requires a lot of patience.
You can hope to start earning after a few months at best. For most people it can take one or more years. After that, it's all about the time you're willing to spend trading. As in all fields, the more you work, the faster you progress. There are always the smart ones, stronger than the others who are happy to shout loud and clear that they have doubled their capital in a week, or even in a day. Anyone can doubling their capital but the hardest part of trading is not winning but lasting. (Notice that you never see the smart guys again a few weeks later, which is normal, they razed their trading account because of non-existent risk management!
Firstly, you have to learn the basics of trading. This is the technical knowledge required to succeed in the financial markets. You learn chart patterns, resistances and supports, Japanese candlesticks, the main technical indicators, etc. Don’t think that there is an enormous amount of information to be ingested. No, the basics can be learned quickly for anyone who wants to learn them. Novice traders often make the mistake of getting distracted from their training and start searching for trading martingales, miracle technical indicators, etc. Stop believing in Santa Claus! If all experienced traders use more or less the same trading tools, there is a reason. So just stick to these elements, the ones you can find on any trading site.
What takes time is learning to control your emotions. Opening a real account awakens your worst instincts. To control them, there is only one solution: imposing money management rules and refrain from breaking them. Successful trading therefore requires rigour and discipline.
What also takes time is finding the right trading strategy. The right strategy is not just a winning strategy, it is a strategy adapted to your investor profile (trading style, risk aversion, time available, etc.). There is a lot of fine tuning to be tested both in terms of risk management and trading strategy. And to test each variance takes a long time. The important thing is always having a line of thought that can be developed. To help you find inspiration, read the training pages, look at other traders' analysis (without copying them blindly, etc.).
What do you expect from trading?
If you're here to burst the bank in the shortest possible time, then move on. Go to the casino, at least that means that we have real statistics on the number of win/lose traders in the financial markets. The financial markets are not a giant casino. Trading is a school of small profits. If you can't conceive it or you're not ready to hear it, don't trade.
Can you make a living from trading? This is a utopia created by a few trainers or brokers. Among successful traders in the financial markets, very few make a living from trading alone. To live off it, you need at least €200,000 to €300,000 in capital and you need a strong mind. Most people have neither. Don't think that living off trading is easy even if you have the money to try it. You have to be able to handle the financial pressure, the pressure that at the end of each month you may not have any salary, or you could even have losses. To make a living from it, the taxation of trading gains also needs to be taken into account.
The best way to approach trading is to be modest and not expect anything from it. That's why the financial markets must above all be a passion, an activity that pleases you, that makes you want to learn. If you only see the money, you'll never make any. This is the paradox of trading. Those who succeed are those who do not think about money, who see their money as a working tool. Their objective is not to earn money but to last. When you last in the financial markets, you end up making money.
