01 Nov
01Nov

In order to stay in the industry for a lifetime novice and experienced traders must have a systematic approach to everything. That can be trading, learning, exercising or even sleeping BE SYTEMATIC to get the greatest outcome. 

This means acting according to a methodical proven plan. Why is it important to be systematic in trading? Someone who does everything orderly has a chance of success to a great extent than someone who doesn't. FOREX trading has become far more popular and easily accessible.

 The truth is I am ashamed by my industry and how it has become because of its participants and speculators. When I mention Forex or trading to none traders I often encounter fear and worry. This is a sad sad thing to say and see because trading opens doors and changes lives if skill is mastered. This subject was not and will not be taught in school for a reason. Trading education is everywhere across the internet, so many strategies, indicators, tools and conspiracy's about how to make money trading the Foreign Exchange market. There's also fake traders portraying the dream life to wheel you in, fake websites to trick innocent people to trade and loose money. There are ways to avoid all of the above. You can find the best education and that is not on the internet and easily accessible as free retail education will only allow you to find opportunities where the masses are. 

When I first encountered trading YouTube videos and various websites was my main educator. I actually started in binary options and went in for the kill. Couple months later I had lost a significant amount of money. During that time I gambled my money because I had no real education. I applied various strategies, indicators that I had learnt from the videos and it was disastrous! Why? because I was not systematic! Being a new trader I got exposed to so much and applied everything without planning and management. 

In this article I have written FIVE STEPS that will help you be more confident and profitable in your journey of trading and avoid retail mistakes.

1. Research 

There are several things you should question before even thinking about being a trader. 

Questions such as: 

  • General inquiry - what is the financial market? Where do you trade?  Who trades the financial market?

  • Is it for you? -  will it fit your current lifestyle?

  • Why do you want to trade? - capital growth, Freedom?

  • Are you willing to take the risk?- can you afford to loose?

Trading is not just about making money it  is a opportunity to develop and improve your skills. Conducting relevant research will put you at ease and organise your mind. Finding out what suits you and what doesn't will save you of lot of time and money. If you fail to plan you plan to fail.

2. Education

If Your research was successful, you've discovered yourself and this is the career you want to pursue then the next step is crucial. Trading educational material is throughout the internet and can be accessed effortlessly for many reasons. When I first began trading I paid for mentors and realised I already knew everything they taught me because it is EVERYWHERE!. There are many factors that can mould a profitable trader but in the end it all comes down to YOU.

But where do you begin?

Start with the basics. Don't try to run before learning how to walk. To  be with the 10% of profitable traders you must understand how retail traders think and will react to certain situations/levels in the market. The only way to do that is to learn retail education but don't don't trade accordingly.

 You should have a clear understanding of the topics below before advancing to professional education.

  • General knowledge - Pips, Margin, spread, brokers, leverage and more
  • Forex basics - candlestick patterns, S&R, market structure, divergence.

  • Real RISK MANAGEMENT - strategy with a good winning rate, Phycological involvement

More education - The World keeps changing, learning process never stops the industry is in demand and becoming very popular and volatile most of the technical analysis is outdated. Applying a strategy that you watched in a video uploaded 2 years ago will not give you an edge in the market. How to educate yourself is down to you as an individual. I recommend having a mentor who does real live 1 to 1 mentoring is Ideal, a up to date trading book or a friend.

3. Practice

Moving on to the third step. To succeed, the absorbed information must be put to practice. Education it self is not a strong factor to rely on. It would not be smart to learn something and go risk your hard earned money without proving that it works. Same applies for trading find what works and what doesn't. Before you go live you must experience what its like to trade the market day in day out (depending on your chosen trading style).

Below are the main factors I practised before opening a live account.

  • Practical Learning - Demo account, Charting, Put your trading knowledge to test.

  • What works and what doesn't- multiple timeframes, trading sessions, Journal and optimisation.

  • Risk management- Risk to Reward Ratio, compounding strategies

Psychology- Managing trades, self awareness: phycological effect It is hard to truly get the same emotions as if you were trading live, as crazy as it sounds I treat a real account like a demo account. I do not get attached to my losses or winnings. Any trader must have journal for their trading decisions. A journal helps you document and optimise your strategies.


4. SMART GOALS.

This step is similar to the first step except its more directional to trading. I consider this one of the most important steps because vision is everything. True success is all about working towards meaningful goals and dreams

  • Specific? Focus on what’s important to you


  • Measurable - Define what evidence proves you are making progress?


  • Achievable - How likely is it that you can achieve this goal?


  • Relevant  - Does your goal align with your long term objectives?


  • Time - What is your deadline?

It is important to set your goals high enough to inspire you and low enough to encourage you. We all have a vision, unfortunately due to the media fake traders most new traders set unrealistic goals which then lead to loss of belief. if you doubt the possibility of your goals you will have a narrow chance of success and end up stuck in the matrix. 



5.  Trade

I often get asked questions like where do I execute and how money do I need etc. To be able to trade successfully the above steps must be completed systematically. This is when you're going to truly experience being a trade and I stress that you must be prepared.

There are various ways you can begin to trade. As a beginner the fact is you have a less chance of success. The truth hurts. Experience is a key quality to have but  a great trader can turn anything to anything. I focus on starting small and building big which works out well. Building from a low balance is like playing a game, starting from level 1(1%) to like level 100 (100%). Throughout your journey you will get better as trader and build skills mentally and emotionally, skills that you never knew you attained. If you where to start with a huge balance like most traders say you're going to be faced with big obstacles and fears. You're up against the big boys and you have a responsibility, all the psychological factors will play a huge part in your decision. It is inevitably better to trade without emotion.


  • Broker - Choose a regulated broker and avoid scams. Use the suitable leverage


  • Platform - To do all of your analysis and open, close, manage  positions 


  • Execute - trade according to a proven plan. Be consistent, stay disciplined 


Comments
* The email will not be published on the website.