Keys to Becoming a Successful Trader

For a long time, trading has been viewed as a hard field to enter, but with today’s technology, that is not the case anymore. Becoming a trader is easier than ever. Of course, if you want to become really good at it, you will need patience, skills, and dedication. But if you have a strong will and enough time to invest, you can make a living out of trading with little to no money. Here are a few tips to help you along the way.

Getting started

As with every new project, it starts with a decision. If you want to get into trading, you need to make a choice and stick with it. Starting out and quitting halfway through will cost you a lot of time and money. It’s especially important to spend enough time studying and accumulating knowledge. The web holds a wealth of information that is easily accessible and free, so make use of it. People used to pay a lot of money to learn from professionals, many still do. But if you are resourceful, you can easily find all the information on how to get started online. Once you get to a certain level of knowledge, you can put some money towards better education and more knowledge by investing in books or online courses. 

Supply and demand

Understanding supply and demand is one of the most important skills you need to be a successful trader. There are two factors to consider here. The first is knowledge – make sure you take the time to thoroughly study them from an economics point of view. In order to master them though, you must understand the market and be up to date with the newest trends and developments. A good trader understands the flow of resources and how they are used in multiple industries. For example, graphite stocks on ASX are a very interesting stock investment opportunity because of the many uses graphite has. Analyzing such a complex system can give you a lot of knowledge that you can later put to good use even in other areas of trade.

Minimizing financial waste

Much like with any new business venture or a new career, your goal should be to maximize profit and reduce expenses. Inexperienced traders might think that maximizing profit is all it takes to succeed, however, this type of success is unsustainable over the long term if you have numerous financial leaks draining your resources.

That’s why you need to minimize expenses wherever you can, starting with your credit card spending. Nowadays, you can research many credit card providers and find favorable cashback programs like the standard chartered spree credit card plan that allows you to get money back on various purchases both locally and internationally. This is just one of the ways you can cut your spending and reallocate financial resources towards growing your trading career.

Independence

One of the easiest options is trading from home as you can plan your daily activities around it. However, because there is a minimum equity requirement for a trader who is designated as a pattern day trader, this option is also the most capital-intensive one. If your account falls below the minimum, you will not be allowed to trade until you deposit enough cash or resources. Some markets that require less capital, and can, therefore, be a good choice for beginners are the forex (foreign exchange) or the CFD (contract for difference) market. Forex is a global decentralized currency trading market, where you can test your trading skills and knowledge in one of the ongoing cryptocurrency trends. This is by far the largest market in the world and is open 24/7. CFD is a contract between two parties that don’t involve ownership of the asset and because of that, traders can more easily take advantage of price fluctuations. 

Consistency 

Being a successful trader is not about making a large sum of money in a short period of time. For new traders, the most important goals are consistency and stable cash flow. Making $10,000/month is much more desirable than making $100,000 one month and then $0 for the rest of the year. As mentioned earlier in the article, supply and demand are key, and constant cash flow means that you get to keep up with them. Consistency is also important when it comes to the market that you choose to invest your time and money in. Don’t spread your cash too thin between different markets but instead try to specialize and get good at a certain field. Try to be a leader in the domain that interests you the most.

Closing thoughts

One of the most important thoughts to take away from this article is that you need to enjoy trading if you want to get good at it. Just like any other job, if you are doing it only for the money, you are less likely to enjoy it. Investing in trade means that you get to learn something new every day. Use that knowledge to broaden your worldview, stay up to date on the newest trends, and put your energy into new ideas.