Being a Trader in Stock Markets
Are you one of those who have traded in financial markets before and failed ? Are you someone who has never traded because they cannot afford to fail? What do you think should be the characteristics of a successful trader? In this post we will talk about what steps you need to follow to be successful in financial markets. However, as in some articles, we will not advertise systems that give buy and sell signals, or we will not offer you a system that gives you a lot of money. We will talk about where to start to become a self-sufficient trader. If you’re ready, let’s get started.
In today’s world, people work hard to survive. Due to the difficult life conditions, people are not satisfied with what they earn. Almost all people want to secure their future by saving. While some prefer safe funds, others become real estate investors. Others aim to increase their holdings by trading in financial markets. Regardless of the type of investment you make, you need to do a very good research on these values that you have invested all your savings in. While you want to guarantee your future, you don’t want to lose the assets you have.
So, what do you think is the secret of success in financial markets? Surely there are people out there who are making good money from this business. Do you think they make so much money by listening to gossip about companies? Or do they have high-ranking friends who give them some really good tips? In both scenarios, it is possible to make money from the stock markets, but we cannot say that these are sustainable methods.
You don’t have to be gifted to be trader
First of all, you should know that you don’t have to be gifted to make money on the stock market. Many successful stockbrokers were smart people. But you don’t need 140 iq to make money from financial markets. To be successful in financial markets, you need discipline rather than intelligence. Yes, you heard right, even if you are very smart, if you try to trade without being able to control your emotions, you will probably fail. So how can you become a disciplined trader? Let’s think about that a little bit.
If you want to be successful in this life, you have to be very disciplined. Also If you want to be successful in the financial markets, you must first set up a good game plan for yourself and follow this plan consistently. To be successful in this life, you have to be very disciplined. If you want to be successful in the financial markets, you must first set up a good game plan for yourself and follow this plan consistently. If you do not have a game plan, do not doubt that you will develop a suitable plan for your cat after a while, by trial and error method. Ready-made systems that give a buy-sell signal will not make you a lot of money. If they were systems that made a lot of money, their owners wouldn’t want to sell them anyway.
Financial markets are living entities, so everyone needs a plan that fits them. While some do not want to lose their capital at all, others may make more risky transactions. You should determine a game plan that suits your risk appetite.
Choose your style to be successful trader
First of all, before buying a stock, cryptocurrency or financial asset, you should determine which term you will trade. Will you be a Warren Buffet-style value investor, swing trader, or just trying to make money with day trading? If you are making a long-term investment, daily fluctuations should not affect you. You have to take advantage of every fluctuation you decide to become a day trader. As in all areas of your life, not knowing what to do in financial markets is tiring. If you have a well-drawn trading plan, you don’t care what movement the market is making. Because, thanks to your game plan, it is clear what you will do no matter where the market goes. At this point, you should discover for yourself which type of investor is right for you.
The real work begins after you adopt an investment style that suits you. If you trust your system, you should apply this system in a multi-disciplinary manner without making any concessions. You should not include your emotions in the decisions you take. We’ve all heard of concepts such as the bear trap and the bull trap. Many investors fall into these traps because they don’t have a game plan or don’t know what discipline to apply. If your system tells you to stop when the price drops a certain level, you should wait very patiently until that point. If you panic and sell the product at a loss, you may be discouraged for the next transaction.
As you can see, even if you have a very well-functioning system, if you have difficulty in managing your psychology, you will not be able to comply with this system many times. First of all, you need to keep your psychology strong. If you cannot afford to take a loss, trading in the financial markets may not be suitable for you.
On the other hand, if you take excessive risks and become greedy, you will even lose your capital. You have to find the balance point and act in a disciplined way, keeping your psychology intact. A good game plan will pay off in the end. You should be afraid where you should fear and rejoice where you should be happy. If the feelings of fear and hope are felt in the wrong places, the results will be very negative.
First you have to control your emotions
Don’t be afraid to make mistakes either. Risk smaller amounts until you build your system. Let’s listen to what Larry Livingston, a master stockbroker, has to say about error.
“A stock speculator sometimes makes mistakes and knows that he is making them. And after he makes them he will ask himself why he made them; and after thinking over it cold-bloodedly a long time after the pain of punishment is over he may learn how he came to make them, and when, and at what particular point of his trade ; but not why.”Larry Livingston
And then he simply calls himself names and lets it go at that. Many times you see it, you will make mistakes, even the most skilled trader makes mistakes. If you are afraid of taking risks, you cannot exist in the financial markets.
To summarize, in order to be successful in the markets, you first have to control your emotions and keep your psychology intact. Of course, you will search for many stocks, many cryptocurrencies. But no matter how knowledgeable you are, if you do not have a strong psychology, you cannot apply what you know. An untimely panic can cause you serious harm. Or you may miss out on many opportunities by being unnecessarily hesitant. Already, people are using robots/algorithms in their investments in order not to be a prisoner of their emotions anymore.
Therefore, before learning technical or fundamental analysis, consider how suitable your psychology is for the job and measure how disciplined you can be. No matter how knowledgeable you are, if you are a prisoner of your emotions, what you know will not benefit you. Be you, don’t look for someone to give you fish, learn how to catch fish.If you have any further questions or comments, feel free to contact us in the comments section.