When you begin anything new, the learning curve is always steep. Yet, with trading there are new things everyday. Many of them were about me, not just trading.
But, here is a run down on the key things I wish I known before I started trading. Hopefully they’ll help you with some key trading and lifestyle aspects before you start trading!
1. How much time it takes to learn
Trading seems like a mess at first. Not as much as being a first-time mom, but still a bloody mess.
During researching the markets, my studying and learning charts, and the YouTube videos I watched, I saw that the more I knew, the more I realised I didn’t know. There is just so much out there and you never know it if is enough before you start trading.
Trading is not like investing , for example. It is not just putting your money into someone’s responsibility and forget about it until richness.
There is so much to it. Charts, Indicators, patterns. I had to be attentive to so many things in my life already – my son, dates, study, work – that it seemed like something overwhelming.
I started to understand how my mind worked differently when thinking about money.
When I bought clothes, make-up, or shoes, I thought money was just something disposable, that was made to spend; but when I started studying about money, especially when watching these TED talks on money, I started thinking about it under a whole different light.
2. How much it would take over my life
I’m quite addictive as a person, but this literally took over.
When you start trading, it’s like when you’re a hoarder. When you’re a hoarder, you just can’t stop buying and accumulating until your house has no floor to walk into.
I started studying so much the knowledge was accumulating in my mind.
I didn’t have time for anything else.
I was SO immersed and obsessed that my friends started complaining about some of my attitudes.
I started saving money to trade, instead of going out with my girlfriends, getting drunk and buying tons of clothes every month.
Every aspect of my life went deep into trading:
- Changed from watching make-up on YouTube to watching traders.
- Changed from friends on Facebook to traders.
- Took eLearning courses on trading.
- Changed news sites from celeb gossip to economics and business.
- Instead of checking Instagram, I checked the balance of my trading account.
- It even ruined date nights checking open trades.
Anyway, you got the point.
It became something natural. My life revolved around trading in a sickening way.
It happened when I went into a demo account. ALL OF THE TIME.
It happened when I moved into a real account. And it was, EVEN MORE, ALL OF THE TIME.
I wish i knew it before trading, I bet my friends did as well 🙂 I glad now you and your friends know it before trading.
3. Know how much it hurts to lose money
When you trade and lose money, you feel a huge pain. It’s like hours of hard work thrown away.
You begin to question your choices as if you were a teenager again: what you did wrong, why this company went bankrupt or lost value so easily and why you didn’t predict that.
And then you cry to sleep – no, I’m not talking about a boy, it’s still about trading.
The bright side is that losing is solvable. You can lower your risks when you start trading if you learn risk management.
You can still lose money, but once you figure out what is each damn thing in trading, you’ll feel safer when doing it.
Learning risk management is vital.
4. Trading psychology sucks
We’ve talked about how bad it is when we lose money, right?
Besides learning risk management, there’s something even more important you have to master. The trading ‘game’ is psychologically hard as well. You need to trick and master your mind into success. This is just something you must know before trading.
Taming FOMO – Fear of missing out – is even harder than learning the vocabulary in trading. You shouldn’t expect to thrive in your first tradings as an expert would. Maybe, if you’re too scared and FOMO is taking over you, you could start with demo accounts.
Once you know enough, knowing more doesn’t actually help. It is how you apply it – which is all mindset.
If you choose to start from a demo account because you’re too afraid to lose money, take a look at our hints on how to move from a demo account to a real account.
5. Discipline is EXTREMELY important
Well, we already talked about how it hurts to lose money and how psychology can be a pain in the ass. I’ll give you one word that will help you solve this: discipline.
Trading is like dieting: even before you start, you have to make a plan and stick to it, otherwise, you’ll get even fatter – or poorer. Nobody wants that, especially you, right girl?
There are a few things you have to learn before start trading:
- You need a strategy – and stick to it.
- You need rules – and stick to them.
- You must track every trade. If you don’t, you’ll learn slower.
- You must always use Stop Loses. If you don’t, you’ll lose big.
Strategies and rules are learned through readings, by taking courses or through raw practice.
Trading is time-consuming at first, but don’t let it ruin your dates and prevent you from hanging out with your girls, ok?
Find balance by setting a specific amount of time per day for you to study. Don’t be a nerd! This is a great thing to know before trading, as it helps keep balance and control in your life.
I prepared something just for you. It’s a free course on how to start trading in 7 days. When you finish it, you’ll be 7 steps ahead of your trading proficiency.
If you want to start trading and don’t know where to begin, start by reading these articles:
About the Stock Market:
What did you wish you knew before trading?
What did you find hardest?
What did you wish you knew before starting?
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