I dare to defy anyone who says trading is difficult and takes a long time to learn. It is my observation and a firm belief that trading is so easy that it is actually too easy! Anyone can learn to trade and anyone can teach you how to do it. Let me explain to you what I mean.
Once you have a trading account with a broker and your computer (or a phone) is fired up and has the Metatrader software, you are ready to dive into the weird and wonderful world of trading. Oh, the joys and sorrows that the future has in store for you. You are a brave soul!
But seriously, trading really doesn’t require a brain. Just a finger and a mouse will work just fine. At least this is what I have to conclude after seeing the equity curves (trading results) of most traders. And this includes mine when I was starting!
It seems that most traders actually think being able to click a mouse is all there is to trading. And click click clickety click they do! The Click Rate for them isn’t something related to online advertising but almost a self-defining factor that they use to tell (lie) to themselves that they are now are what people so eagerly look up to: “Real Traders!”.
Yes, trading is so easy that the vast number of newbies (and oldies too) over trade. I used to think that being an active trader meant opening 80 to 100 trades per day. That’s mainly because I wanted to FEEL I am doing something. If I wasn’t active, then what’s the point of calling yourself a trader and buying all the computer equipment (3 screens and a brand new PC). Surely I have to trade if I am a trader!?
Actually, no. No, you don’t. Trading, when defined correctly, is an activity in which you execute a strategy that has been carefully designed, evaluated and tested. You might trade only two or three times per day and even then your strategy is considered to be a fairly active one. There is no hard rule on how many times you should trade per day. Just make sure all that you do contributes to the same goal: becoming a better trader!
Hang on a minute! Is the goal to make money from the FOREX markets rather than engage in some American self-development Mambo-Jambo endeavour?
The end game is to become a consistently profitable trader, not to make money today! Requiring the skills needed in any profession costs you two things: 1) time and 2) money. The higher the skill level you are after the more you have to pay and the more time it takes. Having a doctoral degree is going to cost you more than acquiring a BBA degree. Therefore, you should allow some time for learning when you plan your new life as a trader.
It is quite reasonable to expect that you will lose money at first. But that’s okay as long as the money in your trading account is not your life savings but something that you can afford to lose without it impacting your life too much.
This is vital as it brings several benefits. The biggest plus is the fact that you don’t have to worry about losing the money. I am not advocating losing money, quite the contrary but because learning to trade will cost you money in the form of mistakes and losing trades it is better this money has no emotional strings attached to it. This means you can keep a cool head and concentrate on following your trading plan. Some unsuccessful traders have trading plans but every highly successful trader has a written down trading plan they follow religiously! Most traders don’t have a trading plan and that’s why most of them never become consistently successful traders. Some traders do have trading plans but they don’t follow these plans. Now, you can be better than most and create a solid plan for your trading business. This is how you can one day graduate from the toughest university in the world: the University of Financial Trading.
TIOmarkets is committed to helping you to learn and develop yourself as a trader. This is why we provide you with great market analysis and other education material at TIOmarkets.com/analysis. I share from my 20+ years of experience in markets and trading and help you to become a better trader. Also, if you haven’t yet done so, open a VIP Black account with TIOmarkets. You will get a great trading environment with tight spreads and no monthly subscription or per-trade fees.
Chief Market Analyst
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