How to not be afraid of trading?
Trading in the financial markets requires an extended study of theory and practice. Our experience in training 20,000+ people at various levels shows that it takes 1.5-2 years to reach the status of a confident and professional trader. But the final result is definitely worth the hours of training, but you need to go a long way to the stage where you are ready to trade. Many beginning traders face difficulties and obstacles in the process. And some give up halfway.
Why is it so? Most beginning traders start to trade with real investments right after learning the theory: watching video clips on YouTube, reading books or following introductory courses. There are many secondary factors: psychology, time management, practice, risk assessment, and many others. You have to go through more than one stage of training to get a successful start. Otherwise, a beginner may face common problems and abandon the started activity.
There are 3 key factors that cause many novice traders to quit trading at the beginning of their journey:
1. lack of self-confidence Theoretical training in trading provides only a basic understanding of what assets and strategies exist, what market analysis is, how to work with charts, etc. But as soon as you open a terminal without any textbook or video, many people get confused, because words make it sound easy and in the real market everything is much less predictable. As a result, traders lose confidence and start deviating from theoretical laws and rules, and do not follow key trading precepts. All that follows may be the only loss of the deposit and refusal of further immersion into the field.
2. No experience Trading on financial markets is based on basic economic and psychological laws that have been valid for many decades. However, only experience will allow you to see signals for opening and closing deals more accurately, to choose the right lot size, Stop Loss and Take Profit levels, and much more. Theoretically, it is very difficult to "get the hang of it", and when trading on your own, you will have to go a difficult way, full of unsuccessful deals and losing the deposit.
3. Fears and trepidation Lack of confidence and experience leads to fears and stress. These feelings get worse after the first lost deposit. This happens in 99% of all cases when you trade on your own when you start without a mentor or trainer. Because of fear and worry it is difficult to "cold" analyze charts, conduct technical and fundamental analyses and set orders without emotions. One mistake or emotional outburst can cause a loss of deposit and disappointment in trading. Earlier most successful traders went through this themselves, and only 1 out of 100 achieved real success. Now there are more resources and possibilities. A person does not have to hope for a 1% chance of success. Is there any way to avoid these difficulties and HE fear to trade in the beginning of your way? Yes!
There are three paths a trader can take when starting out in trading.
The first is to keep learning and perfecting theory until all the laws, strategies, and rules are thoroughly understood. For some people, this may seem like a way out, but it is not. In such cases, theory study is usually delayed for a year or two or more, and profitable deals are still not opened. Lingering practice will nullify all desire and aspiration to trade. Besides, in the long period of independent study, something may change in your life, and then trading will become less important.
The second - start to practice on your own with a small deposit, which is sure to be "lost" in the course of testing hypotheses and strategies. This is an effective method, and it is used by 90% of beginners. But it also has disadvantages, and the main one is the loss of time and money in the process of "getting acquainted".
And here appears the third and most rational way of beginning a trader - a practical training course under the mentoring and guidance of an experienced trader. This move saves traders from such drawbacks as "bumping", multiple losses of deposit, and prolonged studies. In fact, practice will allow you to quickly assimilate the material and adopt the experience of a successful trader with personal guidance to obtain a stable result.
Practice is the most important stage of a trader's education, which is best carried out with an experienced trainer. Without it, you may encounter many obstacles that will not allow you to achieve a stable result, wasting all your efforts on theory (which by itself does not work without the skills of its practical application). Here we can draw an analogy with the process of learning English, when after learning the theory, the most important stage is a practice in conversation clubs, with a teacher or a friend, or in real life abroad. It is the same in trading. The path from beginner to PRO is much faster and easier with practice.