Trading on the financial market is currently considered one of the most interesting and highly profitable occupations. However, before you can really call yourself a trader, you have to go on the long, thorny path through the jungle of the financial market and the psychological traps of your brain. The thing is that being a trader is not an easier profession than that of a doctor or an engineer, so if you want to become a real trader and earn real money, you should have patience and enthusiasm. In this article we will describe the path that every beginner must take in order to become a successful trader.

In fact, when choosing financial trading as a method of profit making, only a few beginners will really understand what they are getting into and what they have to go through. Most of them simply imagine how in just a few months they will be able to earn enough for a car or, at the very least, the latest version of a trendy gadget. However, both types of people should expect the inevitable loss of their account balance. Because only beginners who initially understand that they will have to work hard and learn are more likely to get a stable profit in the end as opposed to those who perceive trading as an easy and quick way to earn money.

 

Quest for truth: the thorny path of the trader

 

From beginner to pro — the trader’s path

So, if you’ve nevertheless decided to be a trader and invest your time, nerves, and money in this, prepare for a long path, which can be divided into 5 stages.

  1. The “green” newbie

It all begins with the person somehow learning about trading and its potential – from advertising on the internet, a YouTube video, or after watching a movie where an ordinary guy with $100 in his pocket is able to become a millionaire within a year. Of course, at first they are skeptical of this simple means of earning – only two buttons, UP and DOWN, and up to 90% in profit on one contract – it just seems too suspicious. But after they can no longer resist the desire to try themselves in the role of a trader and finally solve their financial problems or simply increase their capital, all doubts disappear. The newbie quickly signs up with the first, and best, in their opinion, company, credits an account, and ambitiously rushes to the financial market. Several unprofitable trades later, and there is only on a few dollars in their account instead of the several hundred they had anticipated. In fact, it’s a hazing ritual for traders. Now they are convinced from their own experience that the financial market is not a sandbox where you can make castles and get paid for it, that price movement on the chart is unpredictable, and that luck is not the most reliable assistant when it comes to concluding trades with the correct forecast of quote movement.

After that, the newbie finally comes to the conclusion that they should have gone through training, chosen an effective trading strategy, and practiced using it on a demo account. Take two – the beginner trader, like a sponge, absorbs all the basics of trading, watches video lessons, memorizes all the terminology by heart, and trains on a demo account on a trading strategy they found on the internet. The intersections of indicator lines and combinations of price candlesticks – already understanding a little about how this works, they determine those trading signals and close most of their trades with profit. They build their account up to several thousand dollars, confidently switch to a real account, and they transfer even more money there than they did the first time because this time everything is going to turn out right!

For a while, the trading is going really smoothly, and they manage to double or even triple their starting capital. But then something goes wrong again. As it turns out, those few strategies that they had chosen for trading don’t work in every market situation, and not all times of the day are actually suitable for trading. And now they again go into the red wrestling with what the problem is.

First of all, you should calm your ambitions and excess self-confidence. At the beginning, all newbies are in the same boat, with the exception of how much starting capital they have. You, like the others, can expect the same amount of work, and it doesn’t matter where you worked before or what you studied. Even if earlier you were a student of finance or economics at one of the most prestigious universities in the country, you still have no more chances of achieving success in trading than a salesperson, a truck driver, or even a college freshman. A trader is a person that will have to be trained from scratch. The training course that you complete on the trading platform will only provide you with the basic concepts of trading and methods of market analysis:


To continue to steadily increase your capital, you will have to constantly improve your knowledge, learning new ways and features of market forecasting.

 

 

  1. Studying the principles of technical and fundamental analysis

After being assured that it’s not so simple, and that even two trading strategies, for trends and for flats, aren’t enough to trade profitably, the beginner begins to delve into the principles of technical and fundamental analysis. On this stretch of the path, the question immediately arises: where can I get all the material I need to learn? Of course, they look for help on Google or another search engine and discover a lot of options that, in their quest for the truth, they begin to use one after the other:

  1. Schools for successful traders

On the internet today, there are a lot of different schools teaching newbies the wisdom of trading. As a rule, beginners sign up at these schools and the first thing they get is the same free theoretical basics that they already got on their company’s website. A more advanced course with the necessary books and webinars is offered, of course, for a couple hundred dollars, which the beginner pays without issue as they hope that this money invested in training will later pay for itself. Therefore, the “teacher” offers additional paid materials as well. Then you have to pay for the video lessons and then for something else very important and necessary. In the end, at least 500 dollars goes to training.

In addition to private schools, the beginner is also looking for the “secrets” of profitable trading on various forums, falling asleep with questions for traders who publish screenshots with tens of thousands of dollars in their accounts.

As a rule, after such a training course the trader’s  brain is so scrambled they don’t know how to use anything in practice; however, they do already better understand what support and resistance levels are, what candlestick analysis is, how an indicator is different from an oscillator, and how to apply the approaches of martingales, averaging, and hedging. And again they train on the demo account, transition to a real account, get a surge of profitable trades, and then lose their account again.

  1. Signals and robots

When the money spent on training doesn’t turn into a profit, the desperate beginner starts to look for ways to easily earn with the help of automatic signals and robots. Here everything ends much faster – both paid and free signals bring even less money than independent trading. The situation is even sadder with robots – the first automatic adviser loses the entire balance over the course of a day.

Additional training is really the right decision. The thing is that this is the only way to understand how it all works, which laws the financial market lives by, and what influences quote movement. However, it is not necessary to buy expensive courses for this, because the basic information found in them comes from free books available on the internet. Therefore, in order to save time and money, just look for the necessary training material on free resources dedicated to trading futures contracts.

 

  1. Studying the psychology of trading

During the third stage, after extensive training on the demo account and a few financial ups and downs on the real one, the trader begins to understand what the focus is, but steady increases in their account balance still aren’t there. In an attempt to understand why, the no longer a beginner but not yet a pro begins to comb through a lot of forums and discovers the factor of trading psychology. Here the notions of discipline, focus, and emotional control come to light.

Basically, how is a novice or a person who doesn’t know how to control the emotions of greed, fear, and excitement able to trade? At the peak of profitability, they generally forget about the rules of money management, and after an unprofitable trade, they try to recoup. Also, emotionally unbalanced and undisciplined traders often look for strategy holy grails and they trade chaotically, constantly using risky approaches and trying to adjust the market to themselves.

In this way, the trader discovers that their subconscious is building an algorithm of their wrong moves that lead to losses. The study of the psychology of trading takes some time, but this is what allows newbies to cultivate the necessary qualities in themselves, develop trading plans, and purposefully work toward success. Also, during this psychological education, previously unclear approaches to technical analysis become clearer.

Don’t ignore the importance of having the correct psychological attitude for trading, because it will dictate the algorithm of your actions. You see the entire financial market through the lens of your own consciousness. If the reality of the market, when passing through your consciousness, changes to the point that black begins to look like white, then even the most profitable strategy will never bring the desired result.

 

  1. Eureka!!!

 

Having learned the nuances of market analysis and adjusted psychologically for trading, the trader makes an unexpected discovery. It turns out that the whole focus is not on a profitable technical indicator, or even on the rules of a trading strategy. You can earn money even with a single MACD oscillator, trend levels, or just on different candlestick combinations. And suddenly all the information makes sense in their head – even the most elementary strategy starts to provide good results, and if you adhere to the trading plan and the rules of money management, you can steadily trade with gains, gradually increasing your account balance.

At this stage, the trader already has their optimal trading time, their time frame and trading assets, as well as an arsenal of effective trading strategies, which they already know how to use with discretion depending on the current market situation. Also, the trader is beginning to understand that in many respects, success in trading depends on the trading terminal you choose, which should be as professional as possible:

If you get to the stage of opening, you can say that you are one step away from success, because here you will already see for sure what all the effort and work was for. Moreover, it’s impossible to jump straight from the first stage to the fourth one, because you cannot physically learn how to use all the knowledge in practice right away.

 

  1. The trader as a profession

 

This is the last stage of becoming a professional, and when the trader gets here they leave their main jobs. At this stage, market analysis and transaction conclusion transforms into an emotionless and almost automatic process. The trader is no longer surprised by anything – losses do not greatly upset them and profitable transactions are perceived as the norm and do not cause any special enthusiasm. All their trading goes according to plan, turning into a routine job which brings a good income.

Having reached this stage, you can call yourself a real trader, as earning on futures contracts will become your profession and your main source of income. It is these stages which form the path of each beginner trader who is attempting to find a true way of earning online with the help of futures contracts

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“General Risk Warning: Binary options and cryptocurrency trading carry a high level of risk and can result in the loss of all your funds.”

Quest for truth: the thorny path of the trader
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