Trading is not for the faint of heart and with 75% of all people who trade being losers, you will need certain skills to be on the winning side.
Trading has become easier thanks to sites like eToro, IG, Plus500, Binance and Robin Hood and with just a few clicks you can deposit and officially become a trader/investor.
When starting your journey you need to quickly decide what type of trader you are:
- Swing
- Short Term
- Mid Term
- Long Term
- HODLER
- Meme Stock YOLO’er
Have a clear goal in mind before you start looking for the first stocks to buy or even sell. You will also need 3 clear skills to help you become a successful trader:
Skill 1: Mental Stamina
Seeing numbers and graphs flying everywhere and being tested with big wins and losses you will need to keep your cool when under pressure. We can research, set the plan and have everything perfect but the stock market can go against us. It’s what we do when things go against us that matter the most.
Prepare with caffeine, a quiet environment, hit the gym or even meditate before you trade. Do whatever clears your mind and focuses on the task at hand.
Skill 2: Numeracy Skills
It’s quite obvious that one key skill you need is numeracy when looking into stocks to trade. To be able to understand the market size, share price, resistance levels and stop losses and take profits you must be able to absorb all the information to make the best decision. YOLO’ing into stocks with your life savings or just trying to make a few % will get you nowhere fast. Break down each stock, set your limits and buy at the level you think is profitable.
Skill 3: Independent thinking
Being a trader you need to read lots of news, follow experts and see what trends are happening but you still need to remain an independent thinker. Just because someone on YouTube is telling you to buy Apple stock doesn’t mean you should just go ahead and do that. Do your own research and if you disagree sell the stock or just don’t touch it at all.
The media is filled with WSB stocks to trade, celebrities pushing crypto coins or even experts just getting it wrong. You will only ever have yourself to blame if you lose so make sure you put 100% effort and research into every stock you trade.
