The right trading training
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To get the right training in trading, you must first answer some questions that are essential to your success in the financial markets. 99% of private traders are disappointed by their trading for the simple reason that they do not even know what they expect from this activity. Winning is not enough in trading, people always tend to want more and that's what usually leads to the loss of capital. Before thinking about possible gains, you first need to know if you have the means, time and level to be successful in your trading. You must also determine your objectives.
The majority of individuals go into trading to earn money, attracted by profits. This is not a bad reason but you must determine your final objective. Would you like to live from trading? Supplement your income? Make as much as possible? Make money quickly?
If you see trading as a cash machine, you might as well stop right now. Don't even invest a euro in trading, you'll lose it for sure. Don't expect to earn money quickly either, a real trading training course happens over the space of several months, or even years.
Top up your income? If that's your ultimate goal, it's a good start. That's because you have your head on your shoulders. You know it's going to be long and complicated, but with hard work it's possible. On the other hand, if you wish to live from trading, I'll stop you right there. To start with, you need to have at least €200,000 to €300,000 in capital, to properly manage your risk. Furthermore, it is a utopia to want to live from trading, few people can do it (even those who are winners in their trading) because you have to be strong psychologically to support the pressure associated with such an activity. Imagine a month of losing trades, that's a month where you don't have a salary. Are you capable of handling that? For most people (and I include myself in that), the answer is no.
Other individuals come to the world of trading for reasons that are not related to money. You can find people who are passionate about the financial markets and the economy as well as those who come to test themselves, to see if they are able to do it (knowing that the majority of people fail for various reasons). Because yes, trading requires a work on oneself, it highlights our strengths and weaknesses. Being a winner in trading is, above all, about getting to know yourself and mastering these emotions. This is a major challenge.
What do you expect from trading? I could ask the question differently: What does it mean to you to succeed in trading? It seems like a harmless question, but it's far from it.
There is one thing you should know, you have to give yourself the means to achieve your ambitions. In trading, the means is not having a lot of money, it is being persistent and not being afraid of the amount of work that awaits you.
This is a question that banks ask you if you open a stock market account. Again, this question seems irrelevant and yet it is a question that every trader should ask himself regularly during his trading apprenticeship. A trader’s level is determined by two elements:
- Technical knowledge: This is knowledge of the different elements of technical analysis (chart patterns, technical indicators, etc.). You do not need to know everything but simply know the basic elements of trading and to perfectly master and understand the elements that define your trading strategy. Don't spread yourself thinly during your trading training, stay on the basics, on the technical elements most used by other more experienced traders. There is a reason that everyone uses more or less the same elements.
- Experience: That is a broad word that encompasses several aspects. Experience is acquired through active trading practice, it cannot be learned from a page or in a training course. Experience cannot be learned, and without experience, you will NEVER gain in the long term in the financial markets.
First of all, there is what I call technical experience. That is making sure that your use of various technical elements evolves with your trading experience. This is what makes the difference between theory and practice. Theory can teach you, for example, to use a technical indicator in such a way, but you come to realize, with practice, that it is not the best use. Technical experience is also what teaches you to ignore certain signals, to learn how to manage your risk well, to optimize your profit taking, etc.
Then there is emotional experience. This is about learning to manage your emotions. The trigger for emotions is your relationship with money. A demo account has many advantages but does not allow you to acquire emotional experience, as your money is not at stake. That does not mean that you have to rush into opening a real account, but that you are obliged to go through this emotional step one day or another (see, from a demo account to a real account). And the first time, it rarely goes well (I’ll let your thoughts wander to activities other than trading...), or at least, performance is rarely at peak. I don't know many traders (even those who have succeeded) who have not at least once razed a trading account. For this reason, you should not deposit too much money at first. Training for trading has a price, you have to accept that.
I am not telling you anything new by telling you that experience is not something that can be learned, but that it is something that is acquired over time. As with any activity, it is experience that makes you good at it. Trading is no exception.
To progress in trading, you must practice regularly. You must have the time and, above all, the motivation and desire to train. That is why those who succeed are often those who come to financial markets out of passion or personal challenge. These people find time to learn trading and accept the fact that it's not easy.
On the other hand, those who come for profit are often in a hurry. They want to get results quickly and in trading, impatience is a nasty flaw that leads to the total loss of capital! These are the ones who fall into the trap of tempting ads promising to make a fortune.
Training for trading is long, very long. If you do not accept that, you will lose your money. I can't give you the exact time it takes for learning, it's very variable for each trader. One thing is for sure, the more time you can spend trading, the faster you will progress.
However, once you have found a successful trading strategy, it is not necessary to spend a lot of time trading. When some people tell you that 30 minutes is enough to earn money, it is possible, it just induces you to trade on large units of time.
On the other hand, if you want to trade in the short term (this is what attracts most individuals), it will take you a long time. Apart from scalping, the shorter the time unit, the more monitoring you need to do.
You must therefore ask yourself the following question: Are you ready to devote time to training? Once trained in trading, how much time per day would you like to spend on trading?
Before you deposit the slightest amount into a real trading account, set a deposit limit that should never, I mean never be exceeded. Once on a real account, trading can become an addiction, just like poker, for example. That's why before you start trading, you need to be aware of the risks.
Not only should you only invest money that you don't need, but you shouldn't invest all your savings. If you want to learn how to trade, do not invest more than 10% of your savings. Never put your standard of living or your future at risk in order to be able to trade. Trading remains an investment, and like any investment it involves a lot of risks and must be diversified. Diversifying your portfolio is one thing, but you also need to diversify the investments that involve your savings.
What do you expect from trading?
The majority of individuals go into trading to earn money, attracted by profits. This is not a bad reason but you must determine your final objective. Would you like to live from trading? Supplement your income? Make as much as possible? Make money quickly?
If you see trading as a cash machine, you might as well stop right now. Don't even invest a euro in trading, you'll lose it for sure. Don't expect to earn money quickly either, a real trading training course happens over the space of several months, or even years.
Top up your income? If that's your ultimate goal, it's a good start. That's because you have your head on your shoulders. You know it's going to be long and complicated, but with hard work it's possible. On the other hand, if you wish to live from trading, I'll stop you right there. To start with, you need to have at least €200,000 to €300,000 in capital, to properly manage your risk. Furthermore, it is a utopia to want to live from trading, few people can do it (even those who are winners in their trading) because you have to be strong psychologically to support the pressure associated with such an activity. Imagine a month of losing trades, that's a month where you don't have a salary. Are you capable of handling that? For most people (and I include myself in that), the answer is no.
Other individuals come to the world of trading for reasons that are not related to money. You can find people who are passionate about the financial markets and the economy as well as those who come to test themselves, to see if they are able to do it (knowing that the majority of people fail for various reasons). Because yes, trading requires a work on oneself, it highlights our strengths and weaknesses. Being a winner in trading is, above all, about getting to know yourself and mastering these emotions. This is a major challenge.
What do you expect from trading? I could ask the question differently: What does it mean to you to succeed in trading? It seems like a harmless question, but it's far from it.
There is one thing you should know, you have to give yourself the means to achieve your ambitions. In trading, the means is not having a lot of money, it is being persistent and not being afraid of the amount of work that awaits you.
What is your trading level?
This is a question that banks ask you if you open a stock market account. Again, this question seems irrelevant and yet it is a question that every trader should ask himself regularly during his trading apprenticeship. A trader’s level is determined by two elements:
- Technical knowledge: This is knowledge of the different elements of technical analysis (chart patterns, technical indicators, etc.). You do not need to know everything but simply know the basic elements of trading and to perfectly master and understand the elements that define your trading strategy. Don't spread yourself thinly during your trading training, stay on the basics, on the technical elements most used by other more experienced traders. There is a reason that everyone uses more or less the same elements.
- Experience: That is a broad word that encompasses several aspects. Experience is acquired through active trading practice, it cannot be learned from a page or in a training course. Experience cannot be learned, and without experience, you will NEVER gain in the long term in the financial markets.
First of all, there is what I call technical experience. That is making sure that your use of various technical elements evolves with your trading experience. This is what makes the difference between theory and practice. Theory can teach you, for example, to use a technical indicator in such a way, but you come to realize, with practice, that it is not the best use. Technical experience is also what teaches you to ignore certain signals, to learn how to manage your risk well, to optimize your profit taking, etc.
Then there is emotional experience. This is about learning to manage your emotions. The trigger for emotions is your relationship with money. A demo account has many advantages but does not allow you to acquire emotional experience, as your money is not at stake. That does not mean that you have to rush into opening a real account, but that you are obliged to go through this emotional step one day or another (see, from a demo account to a real account). And the first time, it rarely goes well (I’ll let your thoughts wander to activities other than trading...), or at least, performance is rarely at peak. I don't know many traders (even those who have succeeded) who have not at least once razed a trading account. For this reason, you should not deposit too much money at first. Training for trading has a price, you have to accept that.
I am not telling you anything new by telling you that experience is not something that can be learned, but that it is something that is acquired over time. As with any activity, it is experience that makes you good at it. Trading is no exception.
How much time can you spend trading?
To progress in trading, you must practice regularly. You must have the time and, above all, the motivation and desire to train. That is why those who succeed are often those who come to financial markets out of passion or personal challenge. These people find time to learn trading and accept the fact that it's not easy.
On the other hand, those who come for profit are often in a hurry. They want to get results quickly and in trading, impatience is a nasty flaw that leads to the total loss of capital! These are the ones who fall into the trap of tempting ads promising to make a fortune.
Training for trading is long, very long. If you do not accept that, you will lose your money. I can't give you the exact time it takes for learning, it's very variable for each trader. One thing is for sure, the more time you can spend trading, the faster you will progress.
However, once you have found a successful trading strategy, it is not necessary to spend a lot of time trading. When some people tell you that 30 minutes is enough to earn money, it is possible, it just induces you to trade on large units of time.
On the other hand, if you want to trade in the short term (this is what attracts most individuals), it will take you a long time. Apart from scalping, the shorter the time unit, the more monitoring you need to do.
You must therefore ask yourself the following question: Are you ready to devote time to training? Once trained in trading, how much time per day would you like to spend on trading?
How much capital do you have for trading?
Before you deposit the slightest amount into a real trading account, set a deposit limit that should never, I mean never be exceeded. Once on a real account, trading can become an addiction, just like poker, for example. That's why before you start trading, you need to be aware of the risks.
Not only should you only invest money that you don't need, but you shouldn't invest all your savings. If you want to learn how to trade, do not invest more than 10% of your savings. Never put your standard of living or your future at risk in order to be able to trade. Trading remains an investment, and like any investment it involves a lot of risks and must be diversified. Diversifying your portfolio is one thing, but you also need to diversify the investments that involve your savings.
