The 7 Steps to Success in Trading
As many of you know, I am a self-taught trader…
And as you may also know, that SUCKED!
Doing it all by myself, I was forced to learn a lot the hard way, many cases of trial and error along the way and that fact is, in part, what inspired me to become the mentor to people that I never had.
I didn’t have a mentor or a program like mine. But I wish I had. I probably would have made money a lot quicker and not made so many bone-headed mistakes if I had.
But lamenting the past won’t change anything. Instead of complaining, I want to help you so that you don’t have to make the same mistakes I did!
I wish so badly I knew the crucial steps any new trader needs for success.
So I’m going to provide them for you today.
Here are seven pieces of advice that I’d like to offer new traders, positioned exactly where I used to be.
#1. Seek out an education.
The idea of just jumping in and starting to trade penny stocks might be tempting. You’ll figure it out as you go, right?
Not so fast.
I’m all for going for it, but take a step back before you do anything hasty. Remember, this is your money, and you don’t want to lose it. Before you trade, it’s smart to learn a bit about the process and theory behind trading so that you don’t lose your money in ways that could easily be avoided.
You must educate yourself on trading in an applicable, real-life way. With my students, we progress into real advice and methods that you can put to work. I don’t want you to wait years and years to make your first trade, but I do want you to have an idea of what you’re doing before you dive in.
#2. Have a willingness to learn.
It’s best that you learn this early on in your career: as a trader, your education is never complete… meaning it will never end.
Seeking out an education, as discussed in the previous point, is partially so that you can make educated trades. But that’s only the tip of the iceberg.
But if you really want to be a longtime, successful trader, you’ll need to have a will and a desire to learn. This is something you basically want to turn on and never turn off. Keep reading, learning about the philosophies and methods behind successful traders, and stay interested in the world, in terms of not just finance, but everything else, too!
#3. Know what you’re working toward.
If you’re not working toward something as a trader, then your career will have little direction. So what are you working toward with your trading? What are your goals?
When you’re new as a trader, you should have strong clarity on what it is that drew you to trading.
But, money for what? A newer house? A nicer car? A better quality of life?
Really dig deep and figure out exactly what it is that you want to buy with all that money you’ll make. Tattoo that desire on your brain and think of it with every trade you make. It will help you stay motivated, which makes you a better trader. Having goals to stay committed to will keep you going when things get tough.
#4. Recognize your strengths and weaknesses.
It’s important to be able to identify your strengths and weaknesses early on as a trader. Basically, the sooner you do identify them, the sooner you can streamline your trading.
By recognizing your strengths, you can play to them, and adjust your study and trading schedule to suit what works best for you…
Every trade and student is different, so it’s important to recognize this and adapt to whatever works best for you!
By recognizing your weaknesses, you can either work around them or make a decision to become stronger in those realms.
This might involve studying harder in certain areas, or taking the steps to remove bad habits from your daily repertoire and replace them with good habits.
#5. Give yourself time.
Patience is a virtue when it comes to trading. Don’t expect miracles (or millions) in your first week.
It doesn’t have to take an incredible amount of time to start earning money, but don’t rush it.
Let yourself discover what works and what doesn’t, and get your footing as a trader.
Slow but steady wins the race when it comes to developing these skills.
Don’t try to jump ahead, because there’s so much that you can learn along the way that can help you later. Giving yourself the room to learn and improve over time will take away a huge stressor from your trading career, and it will also make the journey more enjoyable.
#6. Network, network, network.
Creating a network is important for any entrepreneur, and traders are no different. Making friends with other new traders can create a positive support network and help you stay inspired. And making friends with traders who are further along in their career than you can give you insight and help you emulate their success.
A mentor, too, should be part of your network; this is a trader who is further along in their career than you who takes it one level higher, acting as your adviser. Meeting with a mentor on occasion can inform your career, give you ideas, and help you know what career pitfalls to avoid.
Moreover, creating a strong network is a great thing for new traders, as you never know what opportunities your connections might afford you in the future.
#7. Learn to love trading.
If you walk away with nothing else from this article, take this advice to heart…
If you learn to love trading, you’re doing yourself a great service as a trader… the process and the journey is actually even more enjoyable than the rewards…the rewards are nice, don’t get me wrong, but learning to be self-sufficient is priceless.
Even if I lost all my money tomorrow, I know EXACTLY what I must to do get it back so I’ll NEVER be down for very long, no matter what happens.
It’s a good feeling.
And I want you to have that sense of security, too.
And remember, too many people suck at their jobs and don’t excel because they don’t truly enjoy it…doing something you hate is no fun. It makes the time crawl by, and it does nothing to improve your quality of life… don’t make that your future.
But doing something you love makes time fly and makes you feel vital and excited about your day, and about life in general.
As the old cliche goes, if you love your job, you never have to work… if you love trading, all the preparation you have to do won’t feel like work.
If trading can become one of those things that you love, then your career will seem effortless and success will come to you far more quickly and more naturally.
These seven pieces of advice are vital for new traders. I wish I’d had them when I was a new trader! So go forth!
And don’t make the same mistakes I did.
Editor, Penny Stock Millionaires