Traders are people who have to balance between crazy risks and great profits. To make this balance to be maintained in favor of the trader, it is necessary to go through a difficult path from a beginner to a professional. You can’t just download the Roboforex mobile app, copy someone else’s strategy, start automatic trading, and wait for your investment to start bringing income. It works a little differently. How exactly? Let’s put the cards on the table.
Secrets of trader success: the main steps
In the financial markets there are no guarantees, ready-made solutions and formulas that lead to excess profits. If you analyze the strategies of the top 100 traders, you will find that they all work differently, use different tools for analysis, follow different styles. However, there is something common in all success stories.
Start by learning
Explore the financial markets, download the MobileTrader: Online Trading platform to read the tutorials and learn how everything works inside, create a demo account and test how ready you are to use the knowledge you’ve learned in real situations.
Never stop learning — this is the basis of your success: in this way, you learn to see prospects and recognize risks before they become obvious to everyone.
Make calm your habit
Discipline and self-control are qualities that should become an integral part of your personality. The market is not stable: today you are incredibly lucky to close successful deals, and tomorrow you lose. You will have to come to terms with the fact that failure is part of success.
Analyze the market
It is very important to build a trading strategy, but it is impossible until the market analysis is carried out. This is the process you will have to deal with on a daily basis to predict situations and understand when to open or close trades. That is, in this way you manage risks and understand how to react to certain situations.
All methods of analysis can be reduced to two main ones: fundamental and technical.
- Fundamental analysis is based on the “fair value of the asset”, so the trader finds overvalued and undervalued assets to see opportunities to create and close a profitable trade.
- Technical analysis is more applied, as it allows you to build graphs, charts, and use indicators. Patterns and trends help to understand how the price of assets will change in the near future. Also, it is needed to spot entry and exit points that will allow you to close the trade with a good profit or at least minimal losses.
At this stage, a kind of trap awaits traders: there are a lot of indicators, and their data are not always consistent. This leads to a lack of understanding of how to act in each situation. Limit yourself to the signals of several indicators: this allows the trader to be prompt and successful.
4. Create a strategy
It seems that a trading strategy can be copied from anyone, and it really is. But you should analyze other strategies, and understand how and why they work, and also evaluate whether they will remain as promising in the case of your assets.
5. Choose a style
If the strategy is something too individual, then the trading style is a rather concrete phenomenon. There are different styles, but the following main types are distinguished:
Choose your style based on your personality, lifestyle, and reactions. Style and strategy form the basis of a trading plan. In the trading plan, you proceed to specific actions. This is how traders achieve their goal and increase their capital.