People are not born professionals; they become them. This principle applies to mastering any type of business, including trading. The final road to success depends largely on how it was started. In the case of construction, it is the laying of a reliable “foundation” that ensures steady progress towards the goal. In the case of trading, the situation is similar – the first steps on the way to professionalism should be made correctly. Otherwise, the beginner will simply be disappointed with this method of earning after losing money.
What is success impossible without?
Purposefulness, patience, the ability to control one’s own emotions – these personal qualities are certainly necessary for a trader, but they are not the most important. There is something without which success would be doomed to failure from the beginning. There must be a keen interest in trading. Over time, it may become dulled, but it is still an obligatory factor.
If you perceive trading as only a way of earning money and you are less attracted to it as an activity in and of itself, then this will significantly decrease your chances of success. Therefore, this criterion is key. Without it, it will be difficult to achieve success. It is a real interest in trading on financial markets that allows former beginners to become future professionals. After all, any path to success is “black and white” with alternating periods of success and lack of success.
Introduction to trading
Most people learn about this method of earning one of two ways. First of all, people see it in advertising on the internet. That’s how 90% of beginners get to the exchange. Secondly, it’s from recommendations from friends or acquaintances who have already achieved some success in this matter. When you start to learn a new activity, it always seems like you’re in a “dark forest.” This is a logical stage through which all professionals pass.
How people are introduced to trading:
The right way – beginners see advertising, go to the company’s website, sign up, and then carefully examine the terminal interface and the basic principles of trading. Then they start trading on a demo account, gradually gaining experience and confidence for further trading on a real account.
The wrong way – beginners are inspired by advertising and immediately invest real money and begin to literally gamble “up” or “down.” They do not have a serious approach nor the desire to really learn about this topic or to become professionals. The result is obvious – they suffer a loss of money and experience frustration with trading.
Some professionals are skeptical of the demo account, as it can instill an inherently wrong psychological approach to trading – a frivolous attitude to the trading account. However, in fact, the truth is somewhere in the middle. A demo account is a great tool for learning, of course, provided it is used correctly.
During the first stages, it is necessary to allocate time to get a basic understanding of trading and to become familiar with the basic principles of trading on financial markets. Novice-oriented trading platforms offer their users a variety of training materials. For example, in the Binomo training section there are dozens of video tutorials where there are clear explanations of how to trade and analyze the market.
First profits and losses
These are two key aspects for a novice trader. At the same time, we emphasize that we are talking about conscious losses and profits. If you randomly open a trade “up” or “down,” regardless of the outcome, you won’t get the experience you need. But when the purchase of a contract is carried out according to the trading signals of a strategy, this is a completely different situation.
When a novice trader uses specific indicators and then, based on their signals, they open a profitable trade, this immediately gives a certain level of confidence that the market can be predicted to a certain extent. The first loss when trading using a strategy is also useful. It helps the trader understand that at the same time it is impossible to predict price movement 100% accurately. Even professionals make losing trades. The main thing is that the total profits from successful operations should cover the drawdown.
Experienced exchange players never really stop their professional development. Their “road to success” continues throughout their working life. The beginning trader needs to focus on obtaining information from external sources – books on the topic of trading, video tutorials, articles, and training sessions. An experienced trader is largely guided by their own experience. They learn by trial and error. This is how true professionalism is achieved in any business. Learning with the help of theoretical materials is effective only at the initial stage, when the first steps are being taken toward mastering a new business.