Steps to becoming a professional

Many new traders fall into the trap of trading education, whilst there are many great educators out there. Unfortunately, in the age of the internet many of the educators are instagram and youtube stars rather than traders. There’s big money to be made online & all you need to do is rent a Lamborghini for the day, print out some fake cash and throw it on the bed! BOOOM — your a professional trader.

This has given trading a bad name and very difficult for the real educators out there to get a decent enough message going. When I come back to education, I found the guys who clearly knew their stuff where running youtube channels with sub 5k followers, where the gurus who have said things like “I only trade a daily candle, as it doesn’t change until tomorrow” are speaking to 250,000 plus subscribers.

When looking for education in the trading, crypto/forex markets, don’t go for the glamour and the show. It is always tricky when trying to identify the real value from the fraud. But if claims are too good to be true, they probably are.

There is also a lot of free content out there, which is great and yet equally detrimental — who do you follow, who do you listen to? A great free resource for trading is a website called babypips. www.babypips.com Get to grips there and you will soon be on the path to success. Well, not quite.

The main thing when starting out, assuming you have identified a broker and read through babypips. Should be RISK MANAGEMENT. This should include risk of education as above, proper due diligence of your broker, where are they regulated and so on. All of which before it even comes to placing a trade.

Once you are ready for trading, risk management should still be the priority — the worse thing you can do is enter a trade with no stop loss or a pure risk to reward entry point. With proper risk management you could actually be a terrible trader (I mean, even lose 70% of your trades, bad) and still be profitable. We teach this kind of logic in our discord server.

But in summary form;

If you risk 1% of an account and you only take trades with a 2 : 1 Reward to Risk ratio. You will find if you take 10 trades on and lose 5 and win 5 you still have a net gain. To refine this all you need to do is seek trades with a 3% reward for a 1% risk and your doing better than 90% of new traders.

Take this one step further and obtain a strategy that wins over 50% of the time and your on the route to success. It’s actually easier than you think.

I will be writing articles here over the next couple of weeks covering more in depth risk management, strategies, the pro’s and con’s of indicators. As well as some useful information on other tools, investment instruments and psychology.

Remember — risk management is a process, you need to take charge of the process. Don’t get suckered into education you don’t need, don’t believe everything you see online. Don’t forget to take the time to read through babypips.