Aim for experience instead of profits
All people trading full time and depending on their trading results for a living have come to the realization that trading should be treated as a business if one is to succeed in this field. This means doing your due diligence as any businessman would do in order to learn the in and outs of what the business represents. And what every achiever will tell you is that the experience you gain is most important in your endeavor. The question every new trader should be asking is “Am I sufficiently experienced in the field I would like to be successful in?”
The answer to this question will determine the priority of your tasks.
Demo accounts don’t count
And the reason is that they only serve a purpose that is mechanical. Demo trading accounts are great for learning how to operate your trading platform and test all tools that you would be using in your day to day trading. Practice accounts are also very useful when developing your trading strategy and trading plan. What demo accounts will not offer you however is real trading experience. That comes from pulling the trigger on a good number of real trades and dealing with all the emotional impact they will have on you. You may have heard the famous trading saying: “You know nothing about the market until you have a position”.
Once you take action you are forced to take responsibility too.
Experience is universal
There is no good and bad experience. It sure was unpleasant when you first touched a hot stove as a toddler but that is probably the reason you no longer do it. Reflecting on this experience makes you realize that even though you got burned you actually paid a small price for learning a lifetime lesson: “Don’t ever touch hot stoves, they burn”. Simple. Like “Never add to a losing position, it burns more than a hot stove”.
Unfortunately it doesn’t really make you experienced if you have not been through the real situation. I can tell you that touching a hot stove is bad but you wouldn’t associate this knowledge with a painful burning sensation. In fact you may even grow curious about touching a hot stove to see if its really as bad as I say.
Be brave to try your ideas
The only people that know with certainty that trading can be mastered are the ones who have mastered it. When you have the chance to monitor and analyze such traders you can do much more than duplicate their actions. You can literally study their craft and become their apprentice sort of speak. When looking for traders to copy in your Tradeo account you have the chance to choose the experience you want to gain. It will be unfortunate if a successful trader you are copying decides to stop trading and all the time you were blindly duplicating the trader’s actions instead of trying to understand the reasoning behind the trades. But if you understood what the trader’s strategy was then you would be fine on your own and continue trading with your newly acquired trading system. You gathered experience instead of just seeking profits.
Wishing your successful trading!
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