Today I would like to tell you about what you need to know before connecting your life with trading and whether you can do it?
🟢 Reading time 5 minutes
What essential aspects of trading will be covered:
1. Forming a plan for your development
2. Research of services and their study (practice)
3. Re-evaluation of knowledge and approach to work
4. Systematization of the work process
5. Step into fulltime
6. Study of styles and types of trading
Well, let's go!
1. Forming a plan for your development
The beginning of an important stage for 5-7% of those who decided to connect their activities with trade! Why for 5-7%? As practice shows - this is about the number that withstands all the tests that the market presents to us.💵
This includes loss of money, stress, and the need to constantly adapt to new rules of the game, often making adjustments to your TS.
Price movements and strategies that we use to work them out today may become irrelevant tomorrow. For example, breakouts will be replaced by spikes and we must adjust our trading to this. It is important to be flexible and have the skill to routinely work with the analysis of both the market and your transactions.
❗️So, at this stage it is important to lay the foundation of knowledge and prepare both physically (set aside time, write out a work plan) and psychologically (it is important to understand that before you become a stable trader, months of painstaking work and studying materials await you).
So where to start?
Make yourself a clear development plan! What we recommend:
🟢Learn the basics of market mechanics: what is a trend, levels, etc.
🟢Learn the basic concepts of trading: assets (financial instruments that are traded - crypto, stocks, currencies, etc.), exchange (platform where asset purchase and sale transactions take place), what is bid and ask, what types of orders there are and how they differ (market, limit, stop order).
🟢Use the opportunities that are open to you: communicate with like-minded people in chats, join communities, share your vision of the market. The main thing is not to be ashamed of your knowledge, everyone once started from 0, and just ignore the toxicity of trading communities, 95% of such people do not understand anything themselves!
2. Research of services and their study (practice)
Uhhh, probably the most exciting moment, if you don't count the transition to fulltime. You finish watching the last lesson, at the same time you write your first TS, register on TradingView, exchanges. In general, a time that any experienced trader will definitely remember for life.🫡
At this stage, practical trading experience is already necessary, the more the better. The knowledge is laid, the fundamentals are learned, everything is set up and you can start working!
You open the charts and try to spot those zones, spikes, accumulations, candlestick patterns, etc. You enter a trade and realize that something is wrong. There seems to be a setup, the trade is open, even the price may go up, but what to do next?👇👇👇
❇️ Many people start having difficulties at this stage. How to manage a position? How to work with it? Where to set take profits? At this point, you start to feel like you're clicking your finger in the sky. And so on one trade, the second, the third. You may get the impression that you've spent a lot of time, but in the end you don't feel the deal at all.
At this point, many people give up, but all you need to do is continue working. Routinely repeat setups, backtest new ones, do analysis. In other words, gain experience!
Rest assured, if you can find entry points, backtest setups and understand the logic of price movement in history, then it is just that you do not have enough trades under your belt. Keep going, you are moving in the right direction. Give yourself time!
At the beginning of your journey, you need to understand one important thing - now you are working to earn not money, but experience.
So your main tasks are:
🟢 work
🟢 backtest
🟢 study
🟢 repeat these actions
🟢 time
Ultimately, this approach will give you a huge boost in the near future. Literally in a month, you will look at the market with a completely different look. Verified by personal experience.
3. Re-evaluation of knowledge and approach to work
If you've reached this step, then congratulations - one of the most emotionally difficult stages has been passed! 💪
Now you should understand that theory and practice are two sides of the same coin. What you have learned will now be perceived in a completely different way. Thanks to the hours spent trading and analyzing transactions, you have learned to see in the market what you did not notice before.
For example, when looking for setups, you won't just be looking for support/resistance zones, but you'll also start paying attention to the market context in which they're formed. The nature of the coin's movement, whether there were any spikes, whether there's a participant in the coin, and the liquidity that will fuel the price movement.
Your first trading strategy becomes the result not only of studying the market, but also of your own mistakes, which gradually turn into lessons.👀
Over time, you stop blindly following the rules of those you learned from and start working based on the individual characteristics of both your psychology and your strengths in trading. Gradually eliminating situations that you are worse at working out and adding those that bring you more profit.
At the same time, every failure in trading is no longer perceived as a personal failure, but as an incentive to analyze and re-evaluate capital management approaches. Emotions play an increasingly smaller role in making trading decisions, while responsibility for your deposit and a deeper understanding of risks are formed.💵
Gradually, you will come to the point where you completely eliminate fundamental mistakes from your trading (unreasonable entry into a trade, an over-tightened stop) and work on improving what you do best.
The main task of the analysis will be to find more profitable entries for your setups, correct non-critical errors: like a missed opportunity to add volume at a good point, etc.
Now the main task is to smooth out the corners of your strategy. You must actively continue to analyze trade after trade, but already following your own principles of work.🫡
The continuation will be released in 2 parts
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