18With many things in life, it is actually beginning which is the hardest thing to do. So the question that you see pretty much everywhere that you go is simply “How do I get started?” or something along those lines. The reason that this question comes up so much is simply that people have been blasted with adverts and promises about the profits that they can make and how much it can change your life. They are then looking towards these profits before they actually know the basics, what a pip is, or even what a broker is.
Trading is a huge beast, and when you are thinking of starting out, it is a daunting beast, a huge one which anyone coming into will not really know where to start. There are certain things that you need to do before you jump in iht both feet, things to learn, and things to set up. Some of those promises are of course a little or even greatly exaggerated, but there is certainly potential out there to get things right if you start out on the right fit. So we are going to be looking at some of the things that you can do in order to get the best start possible for your trading journey.
It is important to point out that there is no one perfect strategy, here is not on holy grail, and there is not a single order that you should be doing things in. every trade is different, so something that works for someone, may not work for you. So do not take this list as gospel, the same that you should not use anything that anyone else says as gospel, simply use it as a way to get an idea of what it is that you could be doing and as a way to get elf on the right fit, rather than simply follow it blindly in the hope of becoming a successful trader. So let’s jump in and see what some of the things that you could be doing in order to start your trading career.
Learn the basics:
Seems a little obvious this one, but you would be surprised at how many people actually seem to skip this, we are talking about the basics of the basics here. Do you know what a pip is? Do you know what a broker actually does? Do you know how to work out your profit and loss? These seem like they would be incredibly basic things, things that any trader should know, but there are people out there trading with real money who do not know one or more of these very obvious questions.
Think about it, would you enter a swimming race if you hadn’t yet learned how to actually swim? That may be an extreme example but it plays out pretty much the same way, you are entering something that is incredibly competitive, yet you have no idea how any of it actually works. You need to ensure that you have learned at least the basics, get an understanding of pips, leverage, risk management, all of these things before you even think of signing up anywhere and especially before putting any of your money anywhere., Take a look around to see what people are doing, indulge yourself in knowledge and just try and learn.
Trade on a demo account:
When you do finally decide to sign up with a broker (which you should have done a lot of looking around and research to find the right one), you will want to ensure that you are on a demo account. The demo account will try to mimic the trading conditions of a real account the best that it can, but the main advantage for trading on this account is that you will not be risking any of your own money.
The demo account is perfect for trying out new strategies or when you are just starting out, it is perfect as a way to get a better understanding of how the trading platform works, but also how trading actually functions. How to put on trades and how to close them. It is recommended that you trade on a demo account for at least the first few months, six months is the number that we often see thrown about. Use the demo account to learn what you are good at and what you need to work on. You won’t make money, but if you are not able to become a profitable trader on the demo account, then there is no point in moving to a live account as you will only lose money. So stick to dem until you are profitable for at last a few months in a row,
Learn to recognise trading and forex patterns:
This will come with doing things over and over and using that demo account that we mentioned above can certainly help with this. You can also do this by looking back on the charts, how far you go will depend on the timeframes that you are thinking of trade. If you are going to trade on the 5-minute charts then look back a few weeks to see if you can see any patterns if you are trading the daily charts, then you may need to look back an entire year or more in order to see if you can recognise the patterns.
I can take time, and it can be quite difficult to begin with to actually recognise what it is that you are looking for. You will need to put this time and effort into working this out if you want to be successful as it is these patterns that will be allowing you to trade successfully when you do finally go live. Do not be afraid to get explanations from others for the sort of patterns that you are looking for, but it is vital that you are able to recognise them yourself before going live.
Create a trading system:
One of the primary things that you would have been told when you were thinking of starting was that you need to create a trading system. This system will have a number of different aspects in it, it will detail what you need to trade, what you need to look for, your risk management, the profit to loss ratio and more. This is basically what dictates your trading. If this has not been created properly there is very little chance that you will end up as a profitable trader. Many people start out by trying to use someone else’s strategy as a shortcut, but you do not understand it, and should the markets change, you will not know how to adapt it properly.
You need to create your own, it is not an easy or quick process but it is one that is vital and it is also vital that you do this while on your demo account. This is important because you will be making mistakes and you will be making a lot of losses as you are creating it. Even the best readers in the world would have had a hard time creating this and would have made a lot of mistakes as they are doing it. So take your time, get it right and it will really help you to get on the right path.
Ready your mind:
If you want to trade like a trader then you are going to have to think like one too. You need to remember that everyone is there for exactly the same thing, so having a new and unique view of the markets does not necessarily mean that you will do any better, traders think in a particular way because that is how you need to think in order to become successful. This is not something that you will be able to do overnight, it will take time, through both practice and by reading or observing others. Learn what it is that you are looking for, how you analyse what it is that you are seeing. Try getting involved in a trading community or two in order to talk to others that are actually trading in order to get their views and opinions on the things that you are looking at.
Track and journal your progress:
This Is the part that most people miss out, yet it is also probably the most important thing that you can do. Creating a trading journal or at least writing down what it is that you are doing. When we say to write things down, we mean everything. The reasons you have entered and trade and the reasons you have not, why you closed a trade, the results, how long you help it, and more. All of these little bits of information will give you a real insight into your trading. This allows you to see both your strengths and weaknesses, it will tell you how you are trading and whether you are following your strategy properly.
This seems like a lot of work and it is, but if you want to be a successful trader then you need to be doing this, and the earlier that you start the better. If you want to be successful then you need to do this, you need to understand why you are trading what you are trading and how you are performing when you do it.
So those are some of the things that you can be doing to help yourself get off on the right foot. Trading is not an easy beast to tame, many will try and subsequently fail. What is important is that you do what you can to get yourself going and to help yourself become successful in the long run. It is a long and hard process, but if you really want it and are willing to put in the time and work, there is no reason why you cannot become a profitable trader.