Most of the beginning traders think about all sorts of issues before they even that to trade and generally speaking, they focus on technical problems. Because that’s only a small part of the things they should focus on, let’s see how a trader with bigger aspirations should think about his trading journey.
Start with your mind
If you go online and search educational material about trading, more than two-thirds of the content has to do with technical aspects like strategies, setups, economic models, or anything like that. Although that’s information a trader needs to master, the first steps should focus on the psychological aspects of trading.
Whether you like it or not, trading involves financial risk and how you’ll manage to take decisions under pressure will affect the long-term results. Document yourself on the psychology of risk, how should you regulate your emotional behavior, and see what mistakes could be avoided in the first phases of trading.
After you’re done with trading psychology, you can start and study the technical aspects, develop a trading strategy that suits you, design a proper risk management model and a strict set of daily habits that you’ll need to obey on a constant basis.
People will generally jump soon to a live trading account, but you don’t want to be like all the people. You want to be smarter and that is why it would be much better to keep trading on a demo account and use trading simulators until you’re confident that you’ve developed all the habits that are necessary for trading.
Trading is totally skill-based in the long run and like any other profession, it takes time until you learn everything that you need to succeed.
Beginners watch all the Youtube channels related to trading and they see all those trading setups with 10 monitors and powerful PCs. When in fact, those people started probably with a simple laptop or basic PC, and that’s everything that you need, as well, in the beginning.
A decent laptop and a smartphone will do the job in the early stages. Even though you’ll be trading with easyMarkets, FXCM, Oanda, or any other popular broker, it is enough to monitor the forex pairs and use the smartphone to read the latest news and monitor the economic calendar.
You shouldn’t put too much pressure on you in the first stages. Don’t expect impressive results but instead focus on the learning process and how you can accelerate it.