People are always looking for an accurate answer regarding the success rate of trading. Some people say, more than 90% of traders are losers and some say less than 5% are successful. As the ongoing debate continues, it is safe to assume that retail traders are not having a great time. And those who are enjoying the true beauty of the trading business is very small in number. So, how long does it takes to become good at trading? For some, it might take less than a yearand some traders might not decipher the mystery of trading business in a decade. There are a few essential things you need to take care of to secure your career.
Having a plan B
Everyone thinks having a plan B is a great way to reduce the risk. But at trading, plan B can kill your career within a second. Most of us, start looking for an alternative and break the rules while making the switch to plan B. And if plan B is so great then you should not have a plan A. Instead of using multiple plans, it is better to use a single strategy. The rule is simple, you don’t become biased by seeing other peoples’ approaches. You know your system is going to work and there is no reason to abandon your strategy in search of the Holy Grail.
Chose a good broker
The struggling time of a trader depends a lot on the broker. Try to find the best brokers for Forex trading as it can lower the risk. A good broker always educates their client so that they don’t lose big money. So, why do the great brokers in Singapore is helping new clients? The smart traders already know the answers. As brokers earn money from the spread and commission, they want you to make a profit consistently. Unless you do so, you are going to quit the trading business and they will run out of business. For this reason, you will find many premium educational materials free of cost in a good broker. On the contrary, you will find promotional offers in an unregulated house.
Now you know the top two secrets to becoming a professional trader. But what about the training? This is where things become interesting. On average, a person needs to spend a minimum of six months in studying the fundamental and technical factors of the market. After they become at analyzing those data, they can slowly build the confidence to trade like a professional trader. Those who are slow learners or aggressive might have to spend more than 1 year to explore the important theoretical part of trading.
In the training phase, you are not supposed to take the trades with a real account. Follow the safety protocol and use a demo account. The demo account is the place where you will learn trading with the demo dollar. Trade in the demo environment and try to build up a simple strategy to boost the profit. Once you do so, you can slowly make the shift over to the real account.
Participating in the real market
Usually, a devoted person starts to participate in the real market after six months of training. Things will appear a lot harder than the demo account as you will learn many new things about this market. Most importantly, the impact hit from the losing orders might make you frustrated. But if you keep following the rules and take the trades with discipline, you will gain the confidence to deal with this market. Think twice before you take the trade and you will learn to value discipline. If you ever get emotional, take a few days off to restore your emotional stability. By doing so, you are going to save lots of money in the future.