What is derivatives trading? It is not always the way you think it would be. You believe that if you invest some 10,000 hours developing a new skill, then you will become an expert in trading. This can be an inspiring thought to some traders while others think that it is nothing but intimidating. Without sacrifice, you can’t become an expert trader. Everything is not easy and takes tedious struggles throughout your journey. Even those traders who already have experience in the field and already have a solid foundation may still find it hard to deal at times.
Good Is Never Enough
As a trader, you need to be tolerant and merely being average will not earn you a living. You need exceptional skills and become an expert and consistent with your earnings to be able to tag yourself as successful. Being good is never enough to attain continuous success. You need to have excellent trading skills. To be able to achieve this, you need at least 20 hours of learning. This means that by the time you reach 20 hours, you have already earned at least 60% to 70% of trading skills and theories that you need to conduct successful trades. The remaining skills can only be achieved after spending long nights or days practicing.
Trading is Easy to Learn But Hard To Master
Traders tend to begin as incompetent but later on, improves their skills through practice. But always remember that trading is not for the faint heart. You may become frustrated for not being able to attain the success you long wanted to have. Then you lose confidence because you have realized that success in trading is hard to achieve. But this shouldn’t be the reason to give up. To produce a steady income out of trading, you need to be excellent. Being good at trading is never enough.
Your Brainpower is Your Trading Power
Your mind has the ability to adapt to anything. There is a three weeks rule that allows you to practice for three consecutive weeks. Throughout this time, you will start to gain the ability to play a natural role with regards to your daily tasks. During this three week’s time, you will notice how powerful your brain can become. It automatically reprograms itself so you can attain higher targets and create new habits. If you want to become an expert trader, this three weeks challenge will help you in embracing the working habits of your trading plan.
The Risk Management Plan
Acquiring loss does not mean you are already a failure. Understanding about derivatives trading and the risks involved are major factors that you should consider in order to minimize losses. Forex Trading does not guarantee you 100% success all the time. Because of that, you need to deal with losses effectively. Though this is difficult to deal with, especially since it involves financial losses. One of the main problems with it is that traders tend to treat the loss as a failure.
In the financial market, there is no place for quitters. If you want to succeed, you need to continue trading even if you encounter losses. If you quit, you will not learn from your mistakes and become a prominent person in Forex trading.