fbpx
BeginnersForexTrade Minim

The definite guide to start trading in 2020

By January 5, 2020 January 8th, 2020 No Comments

Here’s a definite guide and 5 tips to kick start your trading in 2020. What we’re going to share is not some “remember to place a stop loss” or “the trend is your friend” basics that gets you nowhere. It’s actionable tips that opens your perspective to take you further in your trading journey.

May the guide lead you to the road of profitability in 2020!

1. Trading is a marathon, not a 100m sprint.

A lot of traders focus on what’s in front of them, how much they earn per trade or how much money they made per trade. Take a step back and learn to see the “bigger picture”, your trading account’s growth.

One winning trade or one losing trade simply doesn’t define anything. Losses are part of the game and what matters most is your account’s growth chart by the end of the trading period!

2. Don’t believe the “full time trader” hype.

I’m gonna get rich trading my $1000 account!

How much are you trying to make with your $1000 account? $100? You can’t even afford your meals with that. $500? That’s not even enough to cover your rent. $1000? A 100% gain sounds great but how long are you going to achieve it? 1 month? 6 months? or 1 year?

It’s probable but not possible in a long term because you are focusing on the money instead of what’s more important, your trading account’s growth.

Let’s look at the numbers. If you can make consistently 20% a year, you will need $250,000 to live comfortably. If you can make consistently 50% a year, you will still need $100,000 capital to replace your full-time job.

Focus on building your active income and survival, then trade and learn the skills and build a consistent portfolio for at least 2 years before your start investing heavily in your trading system.

If you can’t even profit consistently why risk the money? That’s suicide and a waste of time.

3. Focus on efficiency, not win rates or accuracy.

This is one of the secrets to profitability that is often overlooked by every trader. Instead of a trading strategy that has pinpoint accuracy or high win rate, focus on building a trading strategy that is efficient.

An efficient trading strategy ensures that you

  • Execute trades without hesitation following your trading rules
  • Does not miss trades
  • Execute trades with a correct state of mind

Missed opportunities and wrong decisions are main killers of your trading strategy. A system’s edge and profitability will deteriorate without efficiency in a long term.

4. Money comes from risks, not pips.

How much you make is not dependent on “how many” pips you make. Learn to focus on HOW you can make those pips instead of HOW many pips you can make, then scale your risk accordingly.

5. You need a process in place.

You need a system to tell you when to get in a trade, when to get out and when to not do anything. Without a process and system to guide you, you will continue to trade blindly in 2020. Build a process, back test to validate it’s profitability then execute your trades in following your process in the new year.

Remember that it is a combination of skill, discipline and psychology that makes your trading system profitable. We are small fishes in a big shark tank, do you have what it takes to beat the best of the best in the markets in 2020?

May this article help you make the most out of your trading in 2020!

Leave a Reply