Many of us have heard about the famous trading, we have been told that with this way of making money we will become rich and we will have a luxurious life, in this post I will reveal the holy grail where you can start to see immediate results and have the life you always wanted.
The great secret, or the great holy grail as you want to call it is, “THERE IS NO HOLY GRAIL” there is no great secret where we can always win, but before going more in context let's see in a nutshell, what is trading?
If you search a little on the internet, you will see that it is the buying and selling of financial assets, such as stocks, currencies, commodities, futures, among other things, and yes, it is very accurate, but we can also say, or well as I say it in short, it is the speculation of the price of an asset within the financial markets.
Here are some images of some graphics.
Source: TradingView Platform.
Source: Quotex platform for binary options.
As I mentioned before, trading is price speculation, why, well, because in trading there will always be a percentage of error, i.e. no one knows for sure what the price will do, even the best traders in the world do not win all their operations, now that you can have a high effectiveness, yes, but you do not win all the time.
Now the question that many may ask at this time, can you make a living from trading, and the answer is yes, but the truth is that this world is not as easy as many people paint it, if someone tells you that trading is easy and that in two months you will have the millions of the world, or has little knowledge about this area, or simply wants to scam you to sell you something.
Every trader has his strategy and his way of operating, and many of these are profitable, but the practical issue would be left for another post.
Earlier I had mentioned that you don't always win in trading, but how do we generate profits if you don't always win? That is what money management, or risk management as many of us know it, is for.
This basically allows us to have profit or loss limits for each session, so we do not over trade and do not end up losing all our money, or at least not so quickly.
I made this table for my binary options management.
I will quickly explain what binary options are.
This is a sub-derivative of trading, where we operate in a different way to traditional trading, here we operate under a time, that time is placed by us, and the profit is by percentage based on the money we put in the operation, that is, if the market pays you 80% and the operation is positive, we only win that percentage, otherwise, if the operation is lost, we lose 100% of what we invested. That is why many people say that binary options are not good, because of their risk and benefit, but it is also possible to be profitable, but with a higher effectiveness than forex.
In the following image I will leave you an example.
In order to become profitable in this area, you have to be a very disciplined, constant, and psychologically strong person, about psychology I will tell you more later.
You can operate in several markets, to give some examples we can name, futures, stocks, indices, the forex market, which is the foreign exchange market, among others, depending on what you like you can make a choice, or several.
There are different types of traders and we can name some of them, or the best known ones.
- Scalping: Its operations are extremely short, and usually do not last more than half an hour.
- Day Trading: They usually last several hours, but cannot be extended for that long.
- Swing Trading: This can be extended for a few days, and up to a week.
- Position trading: This can last for weeks, months or even years.
A tip I could give you is to keep track of all the operations, be careful “At the beginning let's start with a practice account”, then you can invest real money, but start with very little, make it money that will not hurt you to lose.
I made this table in order to keep track of each operation, with this we can observe and correct our mistakes, and then we can improve our skills.
Finally, let's turn to the psychology of trading:
The psychological part in trading, is something that many people do not give much importance, and in fact it is one of the fundamental things that every trader must control, because when we are trading with real money, we tend to get a little nervous, and for our brain a loss is something unacceptable, so the human being is not prepared to have losses throughout life, and in trading is something completely normal.
Something that we must avoid at all costs, is to operate with feelings, that is to say to operate by force, either because we lost an operation, or simply we are not concentrated, we must always operate with our fundamentals, at the moment that we do not feel good we simply do not continue operating.
And let's clear our minds with something we like, whether it's sharing with friends, doing an activity or anything else, for example, the rubik's cube helps me a lot.
Sharing with our loved ones helps a lot to clear the mind.
If you like analysis in the financial sector, you can get into this beautiful world, now if you are going to do it because you want to make a lot of money and do it fast, I'll be honest, better look for another option.
Trading can give you financial freedom, and other very good benefits, but if it is not what you are really passionate about, don't do it, it can make you lose a lot of money.
All the images presented in this post are of my authorship, except for those that have their respective sources.
I hope you liked this post, see you next time.
I used the deepl translator since my language is Spanish.
