When does a trader start making money?
Most people are accustomed to the fact that income comes immediately, for example, worked for a month - received a salary, sold goods - received
money, that is, the interval between the start of work and the financial result should not exceed a month.
If you decide to become a trader, you will have to change your attitude towards work and earnings. A newbie on the stock exchange can only earn money by accident, his earnings are more like winning the lottery, yes it happens, but very rarely.
When will a novice trader start making money?
The first stage is “I know everything.”
The trader is confident in his abilities, and is convinced that in order to make a profit, he only needs to know how the trading terminal works.
This confidence disappears after the first drawdowns and withdrawals of the deposit.
The second stage is “Auto trading”.
The trader learns that there are advisors who trade themselves and bring 1000% profit per month.
A month after the next deposit drawdown , the understanding comes that in order to trade with advisors, certain knowledge and experience are also required.
Third Stage - “Study”
The most persistent ones begin to study technical and fundamental analysis , get acquainted with various tactics and methods of money management.
The result is knowledge that needs to be systematized and optimized for practical application.
The fourth stage is “Search for a strategy.”
It is at this time that a detailed study of existing Forex strategies , and our own trading options are drawn up.
There comes an understanding that it is indeed possible to trade profitably. Fifth Stage - "Experience".
Work begins with an already proven strategy, which is brought to perfection in the process of trading, and some technical aspects of its application are honed.
Own capital gradually increases and investor funds appear. If I were to rewind time, I would gladly skip the first two stages, saving six months of unnecessary attempts to make money on Forex, and the most surprising thing is that most of my fellow professional traders have a similar story.
David Sherman.