Newcomers to the financial markets tend to have the biggest ambitions. It is not unusual to find. That a novice trader sets their profitability goals to 100% or even 200% of the initial deposit within a day.
Some beginner traders are fortunate enough to taste easy and quick profits early on. It is possible for a successful novice trader to achieve excellent results, guided only by their instincts and intuition. It may seem as if we’re discussing the ideal start of a trading career. A trader has sufficient funds in their trading account and is motivated. Real life is however never that simple. The better the results in the beginning, the more difficult the reality of the future will be. Beginner’s luck invariably declines sooner or later. The trader will be left having to face feelings of injustice and unfairness.
What to Do Next
If a trader is faced with such a scenario. The first thing they’ll have to understand and admit is that success in trading is the result of a process. This can’t be achieved in a single day. It also does not depend on luck. It can however be very difficult to accept this fact and changing the way you think does not happen immediately. If you have initially made a substantial profit. The instinctive reaction when things don’t go so well anymore is to trade till exhaustion, trying to turn your luck.
The result of this action is however predetermined, as the trader is still fascinated by the delusion of speedy profits. Irrespective of how hard the trader tries to make this illusion work, until they change their attitude towards the work, it will be extremely difficult to achieve positive results. There is however good news. If you were drawn to the excitement of trying to make big profits, but at some level deep down you realize that it won’t work, you can still change everything.
There are no problems that can’t be solved and the only question is if you have the willingness and desire to change.
1. Say Goodbye to the Illusion
To say farewell to the mirage of success. You need to act like a novice trader again and return to the basics. The first step is to use a free trial account on Olymp Trade’s platform. Use it as a simulator and immerse yourselves in trading strategies and do step by step analysis. You first need to select a tool that is suitable for you to analyze and forecast the market, and until you do, you should not trade with a real account.
2. Start Trading With Real Money
Once you have proven the effectiveness of your strategy and your profits on your demo account are at an acceptable level. It’s time to start making real money. To do so however, you have to transfer and apply the experience you gained. When using the demo account to the real one. It is critically important that you don’t start relying on luck again at this stage. We highly recommend that you exercise strict control by self-monitoring your real trades by using a trader’s diary. This transaction journal is used to record each and every transaction, result, and comment. Such a record will help you develop the discipline to only trade using your preferred strategy.
3. Manage Capital Growth
Traders use different techniques to manage their money. There are those that take out all the profits the moment they have made their first successful trade. Hoping that they’ll be lucky again soon. Others focus on building their capital. These traders will for example leave 50% of their profit in their account. This will result in the volume of trade gradually increasing and with it, their income will grow proportionately. It is after all possible to earn more from $5,000 than from $500.
All traders want to be experience success. To achieve real, long-term success, a lot of time needs to be spent on training, studying indicators and graphs. Also understanding how your capital can be managed.
Early success is an enemy and not a friend. What comes easy, unfortunately also goes easy. If you find that you’re chasing your luck, it is a sign that you’re taking high risks when trading. This means that you need to change your approach drastically. Success is after all directly proportional to preparation.