British Pound / U.S. DollarEducation
Useful Information to guide you.
This is a Part 1.
You might have seen the crazy hype around trading. All the flashy cars, and luxurious lifestyles.
Coming into this space it wouldnt be a surprise if you had the idea of getting rich quick.
Trading is not that. Trading is not a get rich quick scheme. Its not what it looks like on the
internet and will never be. Trading is a very difficult skill, that requires someone multiple years
to come out of here successful. Here are some very common mistakes that traders do when
starting out.
1) Watching too many videos. Watching videos is by no means a bad idea, until it becomes.
you do not need to keep watching videos online to learn how to trade. matter of fact, you dont
even need to watch a single video. Videos should only be used as a small guide, as a source to get ideas from. What do i mean? Watching so many videos is not gonna get you profitable, and it will never, no matter if you watch every single video on youtube about trading, if you know every single concept, indicator, strategy, its not what trading is about, and no skill is like that.
You can learn a skill from the videos, but the way you grow it and actually improve on it, is by practicing. And for trading, practice is watching the charts, not the videos. Take your knowldege from the internet and then dip out, your charts will be the tutor from now on... for a long time.
An analogy i like to compare trading to is: picture yourself trying to learn how to dunk in basketball. You could watch someone dunk 1000 times, yet when you try it yourself, you wont be able to do it. From the videos you might have learnt how to do it, but from now, the only thing left is practice. and that is true for every skill, trading included. Trading is a skill.
2) Trading too many markets. There are tons of markets to choose from, all moving in their unique ways. And that is exactly why, as begginers, and even when profitability is achieved, there is no reason to trade more than one security. if you like forex, go for one single pair and trade it for the rest of your life. if you like indexes, go with one only. if you like crypto, go with only one coin and so on.
Overtime, you get a feel for that market and the way it moves. your mind adapts to it. also with time you will see the results. and when we refer to time in trading, its not days or weeks. trading is a loong game, expect atleast a month to start seeing some results of trading 1 market.
If you cant be profitable with 1 single market, what makes you think you can become profitable with multiple markets? each moving their own ways?
3) Strategy. Its again similar to point 2. why keep hopping from strategy to strategy? why everytime your strategy fails couple times, its time to change? thats not the correct of doing it. No strategy wins everytime, there is no holy grail in trading, i dont care what your mentor said.
Your strategy is also another skill. its a way of finding entries within the market. Just stick to one single strategy and see how you improve on it overtime. Major ways to imrpove on strategy is to backtest it (which means find the setups that match your rules in past market data), and of course identifying it in real time live markets. Each setup is 1 rep. Gather Many, many, many of those reps, test your strategy for an extended period of time, preferably in Demo Trading (which TradingView has a great paper trading feature, very simple to use and handy to learn from) but keep in mind that trading paper cash, you have no real emotional attatchment to whatever you are risking, so Paper trading does take away a lot of the emotions but its still good to start with untill you get comfortable with the markets.
Changing your strategy after a bunch of losses is not the right solution most of the time. its the lack of experience behind it. with experience, everything improves if you want to improve it.
Note: I am not a profitable trader myself. These are common mistakes traders do, i have been in this space for over 2 years and i have been a victim of them. Certainly believe these can apply to anyone, regardless of their trading preferences.
You might have seen the crazy hype around trading. All the flashy cars, and luxurious lifestyles.
Coming into this space it wouldnt be a surprise if you had the idea of getting rich quick.
Trading is not that. Trading is not a get rich quick scheme. Its not what it looks like on the
internet and will never be. Trading is a very difficult skill, that requires someone multiple years
to come out of here successful. Here are some very common mistakes that traders do when
starting out.
1) Watching too many videos. Watching videos is by no means a bad idea, until it becomes.
you do not need to keep watching videos online to learn how to trade. matter of fact, you dont
even need to watch a single video. Videos should only be used as a small guide, as a source to get ideas from. What do i mean? Watching so many videos is not gonna get you profitable, and it will never, no matter if you watch every single video on youtube about trading, if you know every single concept, indicator, strategy, its not what trading is about, and no skill is like that.
You can learn a skill from the videos, but the way you grow it and actually improve on it, is by practicing. And for trading, practice is watching the charts, not the videos. Take your knowldege from the internet and then dip out, your charts will be the tutor from now on... for a long time.
An analogy i like to compare trading to is: picture yourself trying to learn how to dunk in basketball. You could watch someone dunk 1000 times, yet when you try it yourself, you wont be able to do it. From the videos you might have learnt how to do it, but from now, the only thing left is practice. and that is true for every skill, trading included. Trading is a skill.
2) Trading too many markets. There are tons of markets to choose from, all moving in their unique ways. And that is exactly why, as begginers, and even when profitability is achieved, there is no reason to trade more than one security. if you like forex, go for one single pair and trade it for the rest of your life. if you like indexes, go with one only. if you like crypto, go with only one coin and so on.
Overtime, you get a feel for that market and the way it moves. your mind adapts to it. also with time you will see the results. and when we refer to time in trading, its not days or weeks. trading is a loong game, expect atleast a month to start seeing some results of trading 1 market.
If you cant be profitable with 1 single market, what makes you think you can become profitable with multiple markets? each moving their own ways?
3) Strategy. Its again similar to point 2. why keep hopping from strategy to strategy? why everytime your strategy fails couple times, its time to change? thats not the correct of doing it. No strategy wins everytime, there is no holy grail in trading, i dont care what your mentor said.
Your strategy is also another skill. its a way of finding entries within the market. Just stick to one single strategy and see how you improve on it overtime. Major ways to imrpove on strategy is to backtest it (which means find the setups that match your rules in past market data), and of course identifying it in real time live markets. Each setup is 1 rep. Gather Many, many, many of those reps, test your strategy for an extended period of time, preferably in Demo Trading (which TradingView has a great paper trading feature, very simple to use and handy to learn from) but keep in mind that trading paper cash, you have no real emotional attatchment to whatever you are risking, so Paper trading does take away a lot of the emotions but its still good to start with untill you get comfortable with the markets.
Changing your strategy after a bunch of losses is not the right solution most of the time. its the lack of experience behind it. with experience, everything improves if you want to improve it.
Note: I am not a profitable trader myself. These are common mistakes traders do, i have been in this space for over 2 years and i have been a victim of them. Certainly believe these can apply to anyone, regardless of their trading preferences.
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