I went into trading as a way to generate an extra income and to create a passive income stream that didn’t rely on me inviting friends, family and strangers to come and join my network.
Also, I found out along the way a lot of business owners trade as a way to generate an extra income and as a way to hedge their finances.
Additionally, I discovered it’s people on the left side of Robert Kiyosaki’s cashflow quadrant who are more likely to trade, maybe because they have the business/investment mentality to a T.
What I have found is trading is as much of a mind game as it is actual trading. My advice to new traders or unsuccessful traders is to get your mind right this is where trade psychology is very important. Then learn to read the charts for yourself.
I used to hate reading/watching charts, but have learnt it’s in my best interest to at the very least know what the overall market trend is. I discovered that I am a lot more successful trading Options as opposed to currency and day trading has cost me more than when I enter short to medium-term trades. This is where I hold a trade for a few days or weeks.
I also have some useful tools I don’t do without when planning a trade and one of them is tradingview.com
which I check solely for the technical analysis.
Market volatility caused by the COVID-19 pandemic has made trading more erratic so we do have to be more careful than usual and maybe look for a scalp trade here or there. However, it’s my view that the charts don’t lie and once you can read the charts and confirm a trend over various time frames trust your instincts and take the trade.
Another rule of mine is to let your risk to reward per trade be properly thought out and worth it! Are you going potentially going to make a lot of money for the trade your about to enter and if not what percentage of your bank will be lost?
I recently joined a community of fellow traders online which helps to provide support in this business which can be quite isolating.
Whilst it’s very nice to be part of a community of fellow traders, I would advise caution if or when you join one as no one should be taken at their word until they have proven themselves to be reliable and trustworthy. It’s important for you to conduct your own research and discover what will make a trade profitable for you.
Have you been a struggling trader? Are you part of a trading community? Let me know below and do feel free to post any trade questions you might have.
I have written a book based on my many years of experience trading showcasing my mistakes and what I learnt. The aim is to help you focus on your money management and trade psychology to avoid making these mistakes and any more of your own. I have placed the link below so you can easily get yourself a copy.
Take care, stay safe and happy trading.
If you want to become a successful trader, improve your trading strategy and or understand trade psychology a lot more, do get yourself a copy of my book and read my blog post here: Forex Trading Made Easy