To be a successful trader or investor, first, you must avoid the following mistakes, which we will talk about in this article.
The first thing you should start with is to take off your pink glasses and understand that trading or investing is akin to starting your own business or at least getting a completely new job. Moreover, you still do not know anything about this and the income received depends entirely on your actions.
Therefore, the first thing you need is a certain starting capital. In the case of an investor, this is money that he can invest in various assets and live perfectly without them for at least the next year. This task is more complicated for a trader because this is actually the main activity. Therefore, a trader must also have a stock of finances to exist normally for the next few months until he learns how to earn income. First of all, it is important for the psychological attitude, so that the first failures do not unsettle you.
It is necessary to accustom yourself in advance to the idea that nothing will work out right away and this is completely normal. It should take some time until you find assets whose price movement you understand and can earn from this. So, for example, many traders in the stock market specialize in stocks of specific companies, for example, high-tech or oil producers.
And it is also quite skeptical about the first successful deals. You know the example of a bad shooter, who accidentally hit the top ten the first time, and then he is asked to repeat, but he has no idea how to do this.
If you regard trading as a job, then you need to equip this very workplace. Today you only need a computer with an Internet connection, the only question is where it will stand.
You can work as a trader in the office, which implies cooperation with a company. The plus is that there is always someone to consult with. Most importantly, there is always a risk manager in the normal office of a trading company. And since you share with the company not only profit but also losses, the risk manager is obliged to ensure that these losses are as low as possible. Therefore, he has the right to prohibit further trade if he sees that a person has begun to sell funds and has lost control of himself. Including a trader may simply be prohibited from trading today if, for example, he became very ill, but still came to work.
There is minus at the office because you are comfortable trading in a team with any specific traders, but instead, you are sitting next to unknown people, and he constantly gets questions. And the neighbor may just have infuriating habits, such as chewing on a pen or crunching fingers, which does not contribute to the working atmosphere.
For those who cannot concentrate on work when he is not alone in the room, trading at home may be appropriate. And investors so almost all buy and sell assets exactly at home because for them this is not their main activity.
There are problems in this case, for example, a cat requires that it be stroked, the daughter is bored, the wife asked for help for a minute and that’s all, a profitable deal passed you.
In this case, you need to distinguish between work and personal life, because trading is, first of all, a thought process that requires maximum concentration, and if relatives do not understand this, it is quite logical to rent a room where you can go as a job. This option has another plus in terms of what helps in the issue of discipline. After all, if you go to work in the office, then you have a clear schedule.
It does not matter whether you are a trader in the office or just sitting at home. It is important that conditions are created when you can completely concentrate on work and devote the planned for hours to it.
Health is an extremely important aspect. Don’t enter your account when your mind is under the influence of something.
For example, some people are firmly convinced that alcohol helps them think. To debunk this myth, let’s talk about computer games. Everyone enjoys his own way and this is his own business. But if you look at professional players in computer games, after all, as athletes, they don’t need to run and jump for real. However, they will never sit behind the keyboard while intoxicated, and most do not drink alcohol at all and are actively involved in sports.
The health of your body is the key to a quick speed of reaction and decision making. And for the trader, these skills are also extremely important, because the situation can change at any time. And if your brain is forced to be distracted by the pain in the side, heartburn, lack of sleep, or a heavy head, then the time to think about the next deal will be much less.
Each experienced trader has a line, for which he will never go. Because then the state of revenge begins, when you’re not so much analyzing what’s happening as you are sure, that now I’ll definitely go for a plus … And then you will abuse for a long time and think where to buy the keyboard instead of just broken.
The trading guru, who stably receive income, can stop on time and not turn into a catastrophe just a bad day on the exchange platform. Moreover, they carefully analyze each similar situation to find the reason and continue not to repeat such mistakes.