Trading is a profession that needs to be done persistently and dedicately. Anyone just wanting to earn money overnight can’t opt for trading. Making trading as a career is not a simple task, you need to have a passion for charts and graphs. You should have the required knowledge about the tactics of the market.
There are many things that you need to learn about the market ranging from the types and categories of stocks, options, futures, or forwards. The different sectors. The different strategies and many more. Trading if done with half knowledge can be very devastating.
If trading can make you rich, the same trading has the power to make you bankrupt. The process and methods have to be minutely followed. Different mentors or traders provides both online and offline trading strategies, people learn from them to be on a safe side. It’s always better to have the knowledge about the field and then pursue it as a career. Listen to business podcasts, read books or take classes from organizations like Certus Trading a trading education company lead by Matt Choi a self-taught, professional trader with over more than two decades of trading experience.
There are numerous things which need to be learned by a person, but the most crucial and essential things that you should know about trading are highlighted below-
Know your interest:
Trading is not a small area that needs to be covered, it’s just not about stocks. You need to have an idea about the overall trading market running worldwide. There are options, futures, forwards, swaps. There are various methods such as intraday trading, keep and hold trading, and so on. Just you need to know where your interest and expertise lies, you want to go for intraday trading or you want to have a buy and hold strategies. You have to have a clear picture in your mind before proceeding to make a career in trading.
You need to have adequate cash with you before entering the trading world. A single loss can lead to wiping off your profits of weeks, months, or even years. Just it is necessary to have an ample bank balance to not let you go in the state of bankrupt or in a position that you’re unable to handle the loss.
You should not be the victim of biases. Human psychology shows different biases while trading such as loss aversion bias, overconfident bias, endowment biases, and many more. The biases does not allow a person to practically take a decision. Such as loss aversion bias does not allow the person to cut out the loss, if he has bought a share and currently he is losing on the shares, he won’t sell it to square off the trade he will wait for the share to gain, and this leads him to make further losses. Thus, be practical while trading.
Therefore, in this regards a person with zero or minimal knowledge needs to get the training from prominent mentors. Hence, it becomes necessary to first get the knowledge and passion for the field to make a career in it.