Who is a successful stock exchange trader? 

Three hundred per cent per month! Million dollars in half a year! This is a success, isnť it! Or rather:” Big nothing in the bank but I have learned a lot.” What may be considered a stock market success? If you are bothered by making only a few per cent per month, or not even that, read this post about how you can look at success from a different point of view. 

There is a large number of definitions on what to consider a success at the stock exchange. We can monitor the appreciation of the account percentage-wise or the appreciation of 100% in a shorter or longer period of time. You can also focus on the profitable range and outperform yourself in the number of successful deals in a row without being interrupted by loss.

Success certainly is the adoption of a profitable strategy. – The ability to learn it and apply it in real life. – Building an account long-term, being in profit more than in loss and monitoring “the equity curve”. And you can definitely be considered a success if you even manage to survive on the stock market, not losing all the money hence being able to learn this wonderful business.

The first year on stock exchange

The stock exchange market is technologically, with its inner logic, very simple. You learn to trade within a few weeks and technically, you can really understand it within a few months. Within that time, you are able to orientate in trends, barriers. You learn to differentiate price swings and corrections, distinguish and recognize favorable and unfavorable correlations between different types of instruments, trend synergies and another online trading context. But that’s not quite all.

You need to build up a certain level of “feeling” for the stock exchange and market dynamics. Simply watch and follow the markets. To go through the experience of tens and hundreds of hours of watching charts to develop a sixth sense of recognizing false signals from the right ones you want to trade. There are many shortcuts that lead to successful trading, but there are some things you can’t speed up. You need to be patient, excited, and mainly possess the ability (or capability?) NOT TO MISS AN OPPORTUNITY.

The fact, that trading is technically relatively simple probably stands behind 80% of traders being in a loss. When they complete their fundamentals, they embark on trading without knowing the risks and proper context that we describe above. And at that moment they are in trouble. It is a strange phenomenon that many beginners start doing very well during the first few months. “The beginner’s luck” aspect works very strongly on the stock exchange. Unfortunately, many traders get the impression that they have some special talent they were born with, they stop being cautious. And without realizing it at the moment, they stand on the verge of a trap, from which many of them will never get out of again. They lose their account as well as the opportunity to learn this wonderful business.

Your goal for the first year should be bare survival. Of course, if you manage to increase your capital from the beginning, the better. But the milder and more modest expectations of your abilities, the better. If after one year, your account shows the same operating capital balance as at the beginning, so your profits and losses are approximately equal, then this is a great success! If you succeed, you haven’t lost your account and opportunity. You have a chance to move forward.

The next significant phase should be a careful accumulation of profits in your account. You should not think too much about withdrawing money. At this stage, it is advisable to use the operational bonus provided by many brokers. Trade only with it and adjust your money management to the bonus amount, especially the number of lots opened. You won’t be touching your own money and this will ease off the mental pressure a little bit. Once you are consistently in a profit, you can start trading your own equity.

The most important stages of building capital

The third step should be 100% appreciation of your account, doubling your initial deposit. It doesn’t matter how long this takes. You have plenty of experience in this phase and if you are more profitable than lossy, this period is relatively easy. And when you make it, withdraw “back home” the original investment. At this stage, you know that trading didn’t cost you anything. You have your original deposit safe at home and you only trade with the money you earned by trading. This has a huge psychological dimension! You will be trading a lot more relaxed and the pressure on you will dramatically drop.

The fourth phase is the final phase. Simply trade, collect experience and build Trading as a lifestyle. The fourth phase can last as long as you wish. At this point, you are “retired young and rich”. You are where you wanted to be and that is a huge success. I congratulate you and donť forget to keep the ongoing respect for the stock exchange.

Now it may be obvious to you that going through these phases takes at least several years. Did your chin just drop? You may now realize that your intention of becoming “a full-time trader” within two years won’t be happening so easily. Believe that it is possible, but it depends on many factors that you donť have an idea about at this point. The most important thing is how personally mature you are and whether you will be able to stick to the rules of exchange trading.

Trading is a very significant mental process. At every stage of your online business, you could have read about a few paragraphs above, you gain experience not only from trading itself, but you also are under great personal pressure. This is a very interesting overlap of stock trading into everyday life. Online trading allows you to refine your characteristics to better quality and to become a truly better person and professional in other aspects. If you don’t deny yourself this possibility due to stupid losses, the Stock Exchange will teach you patience, cold blood, decisiveness, and also the ability to recognize how important different inputs are for your decision making.

At the end, you may even find you want to concentrate on self-growth and the profit from trading is an additional bonus. But Yes, it wouldn’t be the same without it 🙂