In the digital era, becoming an online trader takes only goodwill and a reliable internet connection. But becoming successful as an online trader takes more than that. Besides a good grasp of the markets and efficient trading strategies, there are other not so obvious but crucial factors to bear in mind. We will round them up here to help you acquire a proper mindset in online trading and ensure you consistently make profits.
1. Choose excellent trading intermediary
Many of those who reached the level of successful trading have had the experience with the scammers. Learn from their experience and avoid entrusting money randomly to the first brokerage company popping up in ads. Only regulated and transparent brokers should be considered. To be able to scrutinize their business activity, read broker review since it’s the first and the most critical step for profitable and secure trading.
2. Stay disciplined
The big difference between an active retail trader who makes losses and a successful professional trader is the discipline factor. As a rule, it is not due to a lack of knowledge but to the sudden switch from one technique to another. A professional trader who does not follow the trade plan will fall out of favor with his superiors, even if the trade was profitable. A private investor often finds it difficult to follow their own rules or trading systems when it gets tough. Discipline keeps emotions like fear and greed from gaining the upper hand. Follow clear rules regarding profit and loss.
3. Update your knowledge
While it is possible to be a successful trader without extensive training and without studying dozens of books, the subject should not be taken lightly. But even here, nothing is free. Only those who take the matter seriously and are ready to learn from the inevitable setbacks can improve. Don’t blindly accept what you hear and read up on trading strategies, tips, and other well-meaning advice. Be critical of everything and try to adopt the things that work for you.
Talk to other investors and traders and try to learn from their mistakes. But beware of the boastful and gossipy who unfortunately abound in the investment world. Handsome speakers in tailor-made suits and with (over) expensive cars, who remain mysterious in their technique and achieve above-average efficiency, are rarely good advisers.
4. Patience is your power
“There are times to buy, times to sell, and times to go fishing” – Jesse Livermore. Success in trading is also the ability to wait until a good opportunity presents itself and all the signals are green. “While ‘trading just for the sake of trading’ probably makes your broker happy, a successful trader will have no problem just watching for a while. On the contrary, as long as he has liquidity, he takes no risk.
5. Face the setbacks properly
Even if you’ve done your homework so well, a series of successive losses can make you lose confidence. Doubt about the trade plan begins to set in, and the temptation grows to adjust the rules or switch to another technique. Good traders can face setbacks. They know from experience that even a good system goes through tough times. Also, they can live with it and hold on. But perseverance is not synonymous with stubbornness. Every trader has times when he or she has to unplug a system. However, they should have already thought about it in advance, ensuring that losses are reduced to a minimum through good management of the capital and diversification.
Success in trading comprises many factors from proper market analysis and the ability to make the right decision at the right moment. However, supposing that you already have a flair for the market movements, always bear in mind the factors thereupon described, and you will make the most out of your trading activity.