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Trading For Beginners: Top 5 Things To Know Before You Start

TRADING FOR BEGINNERS

Trading for beginners can be extremely challenging and unspecified thing, often at the beginning either you end up feeling frustrated or feeling extremely confident – both conditions are not considered ideal for trading.


Table of Contents


However it is the most viable and rewarding career if one can approach it in a systematic way.

Ignorance and distractions are two main issues of trading-

For example in real life we try to avoid risky behavior, but in trading we have a tendency to take unlimited risk.

How do you prepare yourself for a thing which has so many ways of expressing itself?

See how many ways you can trade – there are endless opportunities!

Answer is simple : Prepare yourself in such a way that no matter how long does it take for you to become successful in trading you won’t go broke because of it.

Below are the top 5 things to Know about Trading before you start your own journey

1. Trading is A Performance Game

Just like any other sport trading requires not only the skill, practice and focus but it also demands a player ( trader) to give his best performance while in the game ( trading).

You might have seen a player performing exceptionally well in one season and completely losing the track in next.

This kind of winning streak and losing streak is also very common in trading as well as in any sport.

Whenever a trader sits in his trading terminal his performance is determined by many factors  such as his mindset, his technique or his attitude.

2. Probability : Core Of Trading Success

If you are a beginner trader, sooner or later in your trading journey you will find the word “Probability” more relevant than any other secret “recipes” to success.

trading probability

Let me give you a very simple example of a casino-

How casino owners make money despite some players coming into the casino and making huge money?

This is just because of the slight probability edge casino has over its players.

Now listen to these two statements very carefully –

I know market is going to move 100 points up tomorrow  –  Average Trader

I think odds of market moving up tomorrow are high – Professional Trader

A professional trader always talks in probability.

3. Trading is Never Ending Business

If You have seen The Big Short movie then you know there are always big winners in trading.

No matter what is going on in the world, in trading Money Never Sleeps.

Be it a bull run , recession or the black swan events a trader can always make money if he is well prepared.

There will always be a market for you to trade – currency , commodity , crypto or stocks.

You can always do business whenever you want.

This type of freedom gives you an unlimited possibilities to make money however as Uncle Ben told “With great power comes great responsibility”

4. Trading is Risky

Well I know you might have heard this a lot but I cannot simply overlook the fact that trading is inherently a risky business.

But no business comes without risk , in fact I will call trading a risk control business since it is the only thing we traders have control.

Profits does not have to be controlled but losses definitely needs some sort of mechanism for risk control.

You will understand more about types of risk a trader has to take in order to win once you get into the business.

And your risk managing capabilities will drive your results.

5. Trading & Financial Freedom

trading and freedom

Most of us don’t realize but trading can give you a lot more than just money.

Once your financial obligations and needs are fulfilled even to a manageable extent you become free financially and you have all the time for yourself not for your boss , not for your company but for yourself and in my opinion that is the great success of life, when you are able to dedicate your most precious commodity i.e. your time for rest of the important aspects of life like family  & friends.

“It was never about the money to make, it was about getting up in the morning and following up the passion , enjoy the challenges and make learning a joyful process, money will be a biproduct off course since trading is a profitable business Afterall”

Summary

Trading is a great career however like everything else in life you should give it time.

With time, patience and right tools in your hand you can have a great trading business.

Make a clear vision of your trading journey and be a proactive learner of markets.

Make sure you stick to your knitting and avoid all the noise there is in the world about trading.

The most important thing to understand about trading is –

“It is a curious paradox- the more you do it the more you will understand it”

BULLS ARENA TRADING

Author

  • RUPIN JOSHI

    Rupin Joshi Senior Technical Analyst, Finance Writer, and Trading ExpertRupin Joshi is a seasoned Trading Expert with over a decade of experience. As a prolific Finance Writer, he has authored numerous research papers in Technical Analysis and Price Action. Rupin's insights and strategies have earned him global recognition, including awards in Trading Competitions. Currently serving as the Director at Bulls Arena Trading, he continues to empower traders and investors with his expertise and innovative approaches.

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