Getting started in Finance, specifically trading stocks can be a daunting and intimidating exploit. Yet, many people are professionals within the field and end up making millions of dollars in profit from their tested and proven strategies. It may be easy for experts in the industry to give out tips in various markets and offer “Get Rich Quick” opportunities, it takes much more to understand market trends, understanding different strategies, as well as understanding your own psychology.
Below I will describe the different ways beginner traders can take their skills to the next level and hopefully to become profitable traders.
Increasing Discipline
Patience is one of the most important traits for students in any field or sector. If beginners don’t take time to learn and master the fundamentals, students will never become experts. Increasing one’s discipline is extremely important because it allows beginners to dedicate themselves to a craft, and in this case it is trading. Learning the way markets trend, analyzing different strategies to enter and exit markets, and ultimately constructing your own procedures to assess markets all take time. It may take months, years, or even decades for someone to understand themselves enough so that they can recognize what works and doesn’t work for them as traders, and apply what they have learned to the market.
There are many ways to put your skills to the test that include, but are in no way limited to, books, websites, descriptive charts, blogs, etc. Books are one of the best resources available for a beginning trader. There is a plethora of books, manuals, and volumes (literally and figuratively) of physical publications that can be of use for a prospective trader. Books that outline certain strategies, guides on how to analyze markets, methods for how to properly enter and exit a market are just some examples of works that can be beneficial for learning how the industry works. The internet is also a great tool accessible to most people. There are thousands upon thousands of blogs, websites and links that are seconds away from your computer or handheld device.
The internet enables writers and professional traders to also post updates on websites or profile pages in real-time for users to view and try to catch up as the market continues to shift. If there is a certain market trend that a trader sees as important to buy into or sell, he can update a webpage in seconds for viewers to read.
The power of the web is unlimited with unbelievable amounts of information and data that can help consumers become masters of their craft. These resources, if used well enough can be extremely helpful for a beginning trader to become a master in the field
Embracing the Power of Repetition
Re-reading material over and over again will familiarize oneself and give them a better idea of the most up to date data. Reading notes on certain markets, re-watching videos on certain strategies and reading works from other traders allows you to gain new perspectives on markets and better acquaint someone on important topics. The saying practice makes perfect, although is far from the truth, does offer some validity. Practice, practice, practice is the only way a trader can increase their efficacy in the industry. Repeating a certain strategy in order to make sure it works can be the make or break between a successful career and an unsuccessful one.
Unless an inexperienced trader practices his methods, they won’t be able to grow into a master. The topics someone reads more and more about will be helpful in offering traders different lenses and ways to view markets; attempting to see trends and shifts that can lead to successful trades.
Reviewing market charts over and over again will enable someone to get a more holistic idea of how the trends operate, and whether there is going to be a peak or trough in the coming quarter. Repetition is an underrated activity for traders to use which allows users to practice their craft and become proficient traders.
Trading Mentors
Learning directly from an expert can be one of the most valuable experiences for a beginning trader and is what can launch them towards a new level of success. Mentors can give students lessons that they can’t learn in a book or from a video, giving them advice directly from the source.
Mentors may begin by allowing their student to use their strategies for markets in order to get them accustomed to what real earnings and profits feel like; That way, they can get more hands on experience and get a better grasp on what it feels like to be a real trader. Mentors exist so that they can assess a student’s decision making and help the pupil better discern between good and poor conclusions about markets.
From there, students can begin to realize what aspects of the strategies they find to be more helpful and apply the skills they have learned towards formulating their own procedures. A good mentor will ask a student questions on why they made the moves they did, especially if certain tactics were gravitating away from the method of the mentor. Rather than the mentor giving the student tips for a market and not properly teaching them how to analyze markets, the mentor will help you develop your own strategy after understanding theirs and how best to create methods that suit your values the most.
Students may eventually veer more off of the initial strategy so much that they can properly explain why a particular approach worked and are able to offer success behind it. These are signs that the student is beginning to form and become more comfortable with themselves in buying and selling.
Some examples of important lessons a mentor can teach a student can be risk management: not to enter into too many markets at once, limiting your trades and sticking with them for the long term, allowing a few stocks to become successful can make more money than a lot of stocks making a little money, and keeping faith in what the student believes in can all help a beginning trader grow into a master within the field.
Mentors are the pathway into trial and errors of the past, understanding what works and avoiding methods that are doomed to fail. Mentors have been in the industry for some time and maybe more valuable than any other resource in order to take one’s trading to the next level
