How to become a successful trader

How to become a professional trader? How to continuously succeed in trading cryptocurrencies? How to become a successful investor? How to become a professional analyst of financial markets? These questions occupy the minds of any newcomer to the world of financial markets and trading, from the stock market to the cryptocurrency market. We all chase higher profits and wish to become invincible traders who are capable of making the best investment decisions.

If you have pondered upon such questions, you must know that there are no shortcuts to becoming a decent trader. Learning the theory and experience is your only way of making it in the market. Even so, there are simple tips that you must remember from the moment you enter any financial market that will make you a top trader in the future.

How to become a successful trader or investor?

You might think that it takes an absolute genius to pull off a successful trading courier; someone who doesn’t make mistakes and relies on god-given extraordinary talents to become rich. This can’t be further from the truth of course! In reality, traders are not extraordinary people and don’t use magic tricks to triumph in the market. They all have entered the market just like you, made a lot of mistakes, have been properly trained, and have learned from their elders and their mistakes.

This path takes months or maybe years for people to walk through. Your dedication to learning and experiencing has a potent effect on the length of this time period. We try to teach you a few simple but essential tips that all traders must follow.

Have sufficient savings before trading

Never invest all your savings in the market, this is the number one rule for becoming a successful trader and a professional investor. In the crypto market in which the fluctuations are radical, your assets are always threatened by enormous risks. For example, the price of Litecoin might quickly grow exponentially but suddenly fall drastically. This fluctuating market can bring you a fortune, or slam you right into the ground. Veteran investors always say: “Enter the market – stock or crypto – with money you don’t need”.

This is a significant insight because you’d feel a lot less pressure and stress if your investment is in danger, which makes your decisions more rational and less dependent on your emotions.

Always use the Stop Loss and Take Profit measures

As mentioned before, the crypto market experiences extreme fluctuations. There must always be limits to the losses and profits to prevent wrong decisions in such markets. These limits must be imposed before the investment has been made to reduce the pressure in high-stress situations.

The Take Profit limit helps you exit the market while trends are still bullish and profits are sufficient. If there is no take profit, greed takes over and you won’t start selling until prices start to decline. On the flip side, Stop Loss is vital for preventing further losses. Assume you have entered the Bitcoin Cash market and after a while, the prices start to fall. If you have a stop-loss limit, you’d exit the market as soon as prices fall to the established range. But if there is no limit, you wait for the market to make a comeback every day, a comeback that might take a long time to happen.

Learn technical analysis

Rooky traders only act upon their emotions and make sentimental decisions. If you truly wish to become a successful trader, you must learn to read and comprehend the charts by learning technical analysis.

Technical analysis helps you extract information from price charts and make decisions as to whether enter or exit the market at a certain point. Technical analysis might come off as scary for newcomers, but the ride becomes more enjoyable through patience and exercise.

Of course, don’t forget that technical analysis is merely a prediction of the future of the crypto or stock market; even the top-tier analysts might get things wrong. Even so, if you can minimize the error in your predictions, you can become a successful trader as well. If you are an amateur trader, we suggest using copy trading to strengthen your analyzing skills.

Read More: 6 Common Mistakes in Technical Analysis

Always follow the news carefully

Constantly upgrade yourself on the current events and news on both the local and global scales. Review the documents related to your investments and follow the relevant news headlines. The crypto market for example is extremely susceptible to positive or negative news. The study of the underlying company’s business, as well as conditions within its industry or in the broader economy is called fundamental analysis.

Never stubbornly insist on your mistakes

Every single one of the world’s top-tier traders makes mistakes in their trades; mistakes are inevitable, but a successful trader learns from his/her mistakes and looks for reasons instead of excuses. “The analysis might be wrong, but the market never is!”

If you follow these tips, you won’t lose all of your investments in the face of defeat and there will be a chance for you to make a comeback. You must be strong enough to digest your losses and build a bridge on the back of your mistakes.

Prioritize the security of your investments

Double-check the legitimacy and safety of the trading system and platform in which you are performing your trades. This point is emphasized in the crypto market. A crypto wallet is crucial for purposes of security and you can learn all about the criteria related to selecting a proper crypto wallet here.

The exchange on which you conduct your trades must also be trustworthy and recognized internationally. Crypto Desk is a UAE-based platform where you can buy & sell crypto instantly. Since 2015, we’ve grown into one of the most popular crypto exchange platforms and are revolutionizing the financial world.

Recap

The points reviewed in this article are simple tips that will assist you to make educated decisions and have a better understanding of the market. Distancing yourself from each one of these crucial points will deflect you from the course of becoming a successful trader. You can navigate our website and learn all about the most important concepts in the world of cryptocurrencies and financial markets and start your journey to becoming a world-class trader.