Introduction To Trading
Congratulations on your great decision in learning how to trade. This
little course will probably be the best investment of your time you will
ever make in your trading life.
Regardless of what financial instrument you will eventually trade, the
most important thing is learning what to do and what not to do. There
are many sharks out there who offer services to the novice trader with
the sole intention of taking their money.
In this course you will learn what the best thing for you to trade is,
the best way to trade it and how to trade it. I will not be promoting
any service or institution so I have no bias towards pointing you in any
particular direction.
The purpose of this course is to teach you the basics of trading and how
to make an informed decision on the best way to trade. We will cover
all the basics that most people are too afraid to ask for fear of
appearing silly. We will get into some advanced stuff later but we will
take it one step at a time.
Very Important: This course is for educational purposes only. I am not
suggesting or implying anywhere in the course that you should rush out
and invest your hard earned money in the financial markets. In fact I
will teach you how to trade on paper without risking any of your
hard-earned money first rather becareful with the wolf forex trader in
nigeria market calling theirself professional trade without even lifting
a finger on live account.
Never! Never! Never! Put money into anything you don’t fully understand.
This is where the course comes in. All the basics you need to know are
included in this course.
What To Expect From This Course
As the name implies this course is designed for new and novice traders.
It has also however become a reference point for many experienced
traders. The concepts contained in the pages that follow can just as
easily be adapted for the professional trader as well as the novice
trader.
My hope is to guide new traders through the complex terminology’s and
market jargon seminar organiser are into and bring them out the other
side infinitely more informed and better equipped to trade just about
any market you can lay your hands on
Because I am assuming that you are either new to trading, or are trying
to further your education in trading, the scope of this course is fairly
large and is intended for trading in general as opposed to a particular
market.
New traders often are unsure of not only the best market to trade, but
are also unaware of the variety of markets that can be traded.
Trading – The Reality
The fact that you have click for a free course with also free $100
indicates that you have either decided that you would like to learn how
to trade, or that you have started to trade and are still pursuing a
better way to trade.
If you are new to trading then I am glad you started with this course
because there are a lot of misconceptions out there both in nigeria and
online product.
The first question I would like you to ask yourself is why you decided that you wanted to trade in the first place?
Was it the dream of working at home and earning loads of money compare to nigeria economy?
Was it the thought that you could beat the markets as a trader?
Was it the images of what you have seen on Guardian paper or the purpolar success digest on forex or excitement of trading?
I ask these questions because for the vast majority of professional traders life is nothing like what it is perceived to be.
The early stages of your trading career can be frustrating, soul destroying and financially unrewarding.
90% Of Traders do loose their money or better still margin
Believe me when I tell you that 90% is a conservative estimate. Some
sources have it as high as 99% of traders losing their initial starting
capital and I have also read that not only do over 90% of them lose
their money but also 10% actually go bankrupt.
Why is it that so many traders fail? It is not because they are stupid.
In fact statistics show that the majority of traders are well educated
locally and abroad have above average incomes and are generally highly
motivated.
So why do so many fail?
Lack Of Trading Education
By education, I don't just mean learning how RSI works or drawing lines
on a chart. I mean thoroughly educating yourself in all aspect of your
chosen profession. Educating yourself on the correct psychological
approach to the market! Educating yourself in the correct money
management techniques relative to your account size. Educating yourself
in the correct entry and exit methods for the trading style that suits
you.
This is where I hope to be of some help. I don't have all the answers
nor do I profess to be some kind of guru, but I will do my best to point
you in the right direction.
Common Misconceptions Of New Traders
They think they can trade consistently with 80% accuracy.
They think they can turn $1000 into $100,000 in six months.
They think they can predict turning points in their given market to within minutes.
They think they can buy a system that is 100% accurate.
They think they will quit their jobs and make a living full time after a few months of trading.
What's the reason that so many new traders believe that trading is an easy way to make money?
We are continually bombarded online forum emails and the general media
by claims of making astronomical amounts of money by just applying the
vendor's latest method or system.
Fundamentals Of Trading
Trading is not an exact science. You can't do X and get Y every time. It
is as much an art. There is no magic formula or holy grail to success
in trader.
Trading is all about probability. It is the art of correctly applying a
set of carefully thought out rules and allocating the probability of
that event to result in success.
Each trade is an independent event. The market does not remember if you lost or made money the last time you traded.
The way you approach the market psychologically has as much to do with your success as any trading plan.
Money management is crucial if you want to have any hope of becoming a successful trader.
Matching a method of trading with your personality is the only way you will ever feel comfortable in the markets.
An adequately funded account is necessary not only to be able to take
the trades you want, but also so you don't feel every trade is a live or
die situation.
The journey to the road of successful trading will make you confront
your deepest fears. Your armour on this journey will be confidence,
knowledge and believing that you can achieve your dreams.
Never, never equate your success or failure in the markets with who you are as a person!
The Flaw In Our Emotions
As humans we have a natural tendency to try and influence our
surroundings and events we take part in. This is one reason as a species
we have succeeded but it is also one of the fundamental aspect we all
have when trying to achieve success as a trader.
As traders we have to realize we have no control over the market and if
we accept that then we have to accept that we cannot influence the
direction of the market.
The problem of course is we have a tendency to try and succeed and when
the inevitable losses come it is easy to let those losses effect us
emotionally. Becoming euphoric when you hit a winning streak is almost
as detrimental as becoming depressed when you have a string of losses.
We traders have to try to achieve a state of impartiality. We have to
accept that we will have losses as readily as we will gains. Reaching a
stage where you can comfortably accept losses, in the knowledge that
your method of trading will produce profits in the longer term, is the
state we have to aspire to.
Trading is not an exact science.
No matter what anyone tells you, trading is not, nor has it ever been, an exact science.
Trading is an art please take note. To date there has never been an
institution or individual who can guarantee you will beat the market
every time you trade.
Just think about it, if anyone had an exact method that always won,
they would have all the money in the world, given enough time.
Big institutions with all their expertise still only make out 10% a year
in a good year. Am I saying that you can’t make money in the markets?
Absolutely not. You can make money in the markets and quite often a lot
more than the institutions just like me where i do make 3000% monthly
applying two of my strategy in making great profit.
The point is, be wary of anyone telling you how great they are and how
their method will make you rich. Would you sell something that made you
rich?
If someone is trying to sell you a system or method ask him or her for
their audited account,I do reveal my past performers to my student or
investors willing to do business with me and any person that call
himself a trader with a half-decent track record will be more than
happy to show you his records.
0 التعليقات:
إرسال تعليق