A marathon race is the outcome of years of dedication, training, commitment, mental and physical health, etc. It requires an individuals’ continuous commitment. Thus, an individual requires a long-term vision before taking the journey. The thing is the same with trading.
The marathon is not won just by simple training or workout but it is the result of continuous effort and training. Just like an athlete must be well-prepared and pace themselves to win the race, a trader must also have the proper knowledge and adequate practice before commencing the trade. Thus, in the absence of proper knowledge and training, preparation and skills, one can never win in the world of trading.
In the trading, a trader who is really focused and determined and has the required skills and abilities performs best. The skills and abilities come with the practice but one should also keep in mind that trading too much will actually impact the portfolio and nothing more. While trading, some trader often start off going too fast as most traders do, and try to make a lot of money fast by trading too often and risking a huge amount of their money in a single trade. Such an act will only help in injecting a large portion of losses in a traders’ portfolio, and nothing more. By slowing down on trading, a trader can be more focused and consistent with the trade.
Thus, in order to prepare for a trading journey like a marathoner, one has to consider various things:
For a trader, it is vital to have a marathoner mindset rather than sprinter as trading is a long-term commitment. Trading only for a term or for a short-term could be suitable for the ones who are only trading for quick gains. But for a marathoner, who has opted for trading should also keep in mind that trading is not learned in a day, or few weeks, it is learned throughout the trading journey.
Clearly define your plans
It is of utmost importance to clearly pre-define the trading plan. A trading plan helps the trader to control their emotions. A trader must carefully think about his/her investment objectives, required return, risk tolerance, and liquidity before investing their funds into a trade. However, a trader should consider that his goals are realistic and achievable and not vague.
Prepare through the demo accounts
It is also quite important to prepare to trade by practicing it in the demo accounts. Prior to injecting the real money in a trade and learning trading strategies, it is important to first learn trading by using the demo account and sharpen the skills required in trading live accounts. Only when a trader feels that he has adequate knowledge and skills, he/she should start trading in a live account.
While trading, a trader often tends to trade excessively risking too much of their portfolio which causes more impact on the trade. Ignoring the trading plan and excessively trading can lead to an increase in losses.
Successful traders usually concentrate on developing themselves before they commence trading. Haphazardly trading any trading instrument available without prior information is highly dangerous for a trader’s portfolio and thus, a trader must develop his/her own trading strategies and techniques before entering a trade. A successful trader has a long-term commitment, consistent and serious training, and years of studying along with them which distinguishes them from others. Thus, the mixture of proper knowledge and training along with the sharpening techniques and skills is vital for performing well in trading. There is no shortcut to trading; one cannot be profitable each time, but with proper tools and techniques, one can reduce their losses to an extent.