Without knowing the basics of trading, do not dare to enter it. Do you know that many traders give up at the initial level, say, within the first year of trading? The reason is improper knowledge of the financial market and not considering the financial aspect seriously.
There are many means to learn about trading such as Certus Trading, a company founded in 2011 by Matt Choi that provides the education needed for both day trading and swing trading. With little effort and alertness, you can prevent making disastrous mistakes. So, keep in mind these things before making it a career.
Do not focus on short-term profit:
You will start earning profit with the experience. In the beginning, give yourself time to learn things. Many people enter the market, invest money, and expect a return overnight. It would never happen in trading.
Do you know that even the masters of the game tend to make mistakes and bear the loss? Focus on the long-term survivor in trading, and do not presume as an easy way to make money.
Believe in yourself!
Many times you will analyze the price chart and past trend, but still, you will fall prey to rumors. Do not believe in every word on the street. If you are the one who believes in everything, you will not survive in the market.
Also, if you are working with the broker, be extra cautious and hire them with full due-diligence. As many times, they may misguide you to earn their profit.
Prepare the journal:
You invest in the market, and you forget it. Are you keeping the record of the amount invested, return you received, or loss you incurred? Many people are imprudent towards it. If you ask for the details, they will spend a full day calculating it with the help of a bank statement and, at last, still not know the result.
If you want to improve, prepare a journal to analyze the record and found the mistakes you made in the past.
What do you understand by the start small? Probably, working for fewer hours! No, give your best but start the trading by investing less amount of money. The beginning phase is a learning phase, and better don’t focus on the return.
Later, you don’t have to deposit large funds in the trading account from the saving. You have to accumulate funds in the trading account from the profit you earned.
Make an effective trading plan:
Do you know when to stop trading, or in other words, when to change the trading plans? If you are losing it, again and again, consider two things – either your idea is not working, or you are not sticking to the plan.
If you are losing continuously, either alter the trading strategy or leave the procrastinated approach.