Trading is a highly lucrative and fascinating profession, but how can one truly master it?
Becoming a professional trader is a dream of many. However, like many things, learning and mastering this activity is a lengthy process that requires discipline and consistency. At the same time, however, the great thing about trading is that it does not require an academic qualification. Indeed, at least on paper, anybody can do it: all one needs is a functioning internet connection and a piece of hardware, either a PC, a tablet, or even a smartphone. On these devices, the trader can carry out trading operations on the financial markets using the required trading app.
Nevertheless, this freedom and sense of power can become dangerous. The feeling of trading whenever we want and desire can lead to terrifying losses and bad investments. To become a good investor, novices must control their emotions and face the prospect of initial defeat.
So, let’s see in detail what it takes to become an investor and how to start trading.
Trading, how to train?
As mentioned in the introduction, trading does not require any particular qualification. On the other hand, however, it requires a strong knowledge of the financial world. So, how to get enough training without spending hours and hours bent on books? Following a well-structured path by a trading professional, following his teachings and experience, is probably the easiest and most effective way to learn how to trade.
Even in these cases, the danger is around the corner, in the sense that we find "false" traders who have technical knowledge without ever having traded, without having obtained adequate qualifications, and at the same time without having ever demonstrated that they are different from other traders. A trading "professor" is assumed to be a financially and practically culturally prepared person with experience that can be certified by third parties.
You must therefore pay attention to choosing a good teacher and a path that is aimed not so much at achieving immediate results, but rather at training that gives you the right awareness about trading. The immediate gain and the ease of learning a "method" are real traps for those who want to learn how to trade.
Unfortunately, the rush to learn and lack of patience play in favor of this "everything and now" mentality which only brings bad results in the long run. So the first thing to learn to trade is to focus on quality training, preferably being followed by an "expert" who takes you on a guided path.
How to practice trading
This aspect is fundamental. In the training process, if the training course is of quality, the practical aspect is foreseen which mainly consists of carrying out the entire decision-making process which leads the student to the first trading operation in "real" mode i.e. with real money. This process involves putting the concepts learned into practice, a process that should also be followed by the trainer to be able to speed up the times and improve the learning process by correcting the mistakes that the "student" makes in time.
The practical phase involves obligatory steps which above all make the trader acquire confidence, who over time will feel more and more in control of his actions. The mental aspect, i.e. feeling in control of what one does, is fundamental because it prepares the student for greater awareness during the phases in which trading could be emotional for others who have not undergone a training course. The fact of carrying out a structured training course with a "professor" actually makes the trader feel safer, therefore the learning process becomes faster and more effective.
Learning from mistakes
Failure is the prerequisite for the success of any business. Before learning to ride a bicycle it is necessary to experience the limits of the vehicle we have as well as ours and this phase of experimentation inevitably leads to making one or more falls before learning. It’s the same thing in trading, i.e. it will inevitably happen to make wrong operations, some will seem absurd. The process of error analysis is a very important prerequisite for being able to learn.
Here too, if followed by a competent person, the error analysis process will lead to a certainly better result (faster and more effective) than those who do it without a competent person. Being followed in this path greatly reduces the time and allows for better learning. However, failure is completely normal in trading and should normally always be viewed in a positive light, i.e. for what it is, an event in its own right.
Avoid "all at once"
We’ve always talked about learning quickly and effectively, but that doesn’t mean everything is done in a hurry. Not being in a hurry is essential and every activity takes time. It all depends on the will and passion one has in wanting to carry out a certain activity, be it trading or learning to play a musical instrument, it’s the same thing. So each activity has its time to be learned, therefore trading takes time, a lot of time if you are not followed and less time if you are followed by a person who can pass on experience.
The logic of "everything at once" is impracticable and above all incompatible with the trading activity, an activity that requires time, rules, discipline, a large dose of motivation, and passion, all elements incompatible with haste and short times. As you can see, it’s not difficult to learn how to trade, it’s more difficult to follow a path and uproot yourself from a logic that sees trading as a game of chance where whoever risks more earns more.
Remember that whoever risks the most is only a fool who may even gain in the short term. A person who is not aware of his risks is doomed to failure in the long run, a real wake-up call that will remove him forever from the world of trading.
Original article published on Money.it Italy 2022-11-08 12:56:00.
Original title: Trading: come imparare a farlo?
