Whether you trade stocks, forex, commodities or cryptocurrencies, successful trading depends on a few critical things and if you do not have them you will not make it. If you have not already done so, it is also a good idea to read my previous blog writings about why people are unsuccessful at things they want to be.
Primarily trading the financial markets requires a skill set. If you think you can become a trader over night with witty commercials with kids flashing their Ferraris and telling you, you can get rich fast with girls in bikinis, you are gravely mistaken, or you will be later down the line. Also if you think some magic indicator is going to solve your problems you will also learn the hard way.
In order to be good at trading you need the following:
1- Knowledge about the market and its direction. Direction is the first thing we focus on in the Trading Career Program. So technical analysis is the first thing you need to establish and it needs to be a consistent methodological approach.
2- Money management and discipline. Learn how to keep a trading journal and plan out your trades before you press any buttons on the trading platform. Save yourself the grief, from doing rash and stupid things.
3- Environment. Which is the topic of this blog article! As you may have heard you are a product of the environment. Thus the environment is the only thing that will save you actually.
When we are born we are born in a family, country, culture, beliefs and everything that comes with it. So by the time we are grow up everything in the environment influences us and we become what we are and upon these things we never had a chance!
However, as we grow up we do have a chance and that chance lies in the environment! If we want to be successful at something I have to hang closely to the people who are good at that thing. I can not hang out with a bunch of swimmers (unless socially) if I want to be a pilot because I will not progress in what I want to be. I need to be around and in contact with the people who are good at what I want to be and who can support me when I need help and answer questions and share ideas. This is the only way I can enhance my development. If I am alone it is just me and I can not expand my limits of skill but with other people around I can get more from them!
Trading from home or part time is a lonely job and even if you know how to trade you are always in danger of making stupid mistakes (and God knows I have done so too). It can be stressful, lonely and a trader can easily get lost in the market and be diverted to all kinds of distractions from family and friends to social media.
If you want to be a successful trader you need focus and what keeps us focused is the environment. That is the solution to many problems traders have when they start out.
Initially they get interested in trading because they can make or believe that they can get rich from trading and it is easy. Wrong! Trading is a tricky business. Can you make money and a lot of it? Hell yeah! But it is not going to be a quick one night stand kind of thing. It requires obtaining skills and patience and focus.
Solution is a good environment. At the GlobalTrader.Club our approach is an on the job learning approach. Trading can not be learned over a course you take and then off you go to trade! It requires a support mechanism, an environment you can always turn to and ask questions to your peers or mentors. If you do not have an environment as such then you are going to get into trouble pretty quickly in the market because a few losses will not just damage your account but it will damage your confidence as well. At such times you need your head screwed on rather than trying to get back into the market to make up your losses.
This is where the environment comes into play.
If you have an environment, with people around at the touch of a button or message, you do not have to enter a trade without getting a second opinion. Let’s say you entered a trade and you had planned it out and did things by the book and it still went bad, you can still ask to check up on yourself. You can share trade ideas and setups, you can see if your money management is good and compare to how others are doing things. Also you can have a few laughs with other traders as well.
Being successful at anything requires an environment where you can focus and trade and make money consistently!
