Learning from experts is an important thing that will help you grow in all areas. That’s why most professional athletes have coaches and mentors. The same is true in the financial market.
Most successful investors and traders had mentors earlier in their careers. For example, Warren Buffett had Benjamin Graham.
Role models, mentors, and experts will give you some solid advice about the industry. But, they often underestimate some aspects that, instead, deserve attention.
In this article, we will highlight some of the most important pieces of advice that most experts will not tell you as you start your career.
#1 - Becoming a Professional Takes Time
There are two roads in trading: the narrow road and the wide road.
The wide road - the smooth one - is followed by so many traders. The road that anyone can pass, because it does not have meanders and the shortcomings of a smooth road.
Unfortunately, people who follow the wide road do not go very far. They use signals and don’t take time to prepare. This is one of the reasons why about 80% of traders fail.
Followers of the narrow path are few. These are the people willing to go an extra mile, ready to read, watch, and practice how to trade. They also take time to be mentored by professionals who have succeeded in trading.
One of our trading advices to all new traders is to take this narrow path. It will be challenging but at the end of the day, things will add up for the better.
Related » Top Mistakes You Should Avoid as a Trader
#2 - They are Wrong Most of the Time
Another trading advice that the so-called experts never tell you is the number of times they are wrong. The fact is that there are no experts in trading.
We have seen very successful traders and investors make foolish mistakes. Remember, it is possible for one to have a winning streak only for one single trade to mess them up.
A good example is Lars Kurjer, the author of Money Mavericks. In the book, he describes how he rose ranks at Goldman Sachs, left to start a hedge fund, became a success before a single trade lost him a fortune.
The so-called experts, including from leading institutions like Goldman are usually wrong most of the time.
Related » 5 Hedge fund strategies to follow
#3 - Not Everyone Can Become a Trader
Another thing these people don’t tell you is that not everyone can become a trader. This is similar to all other fields out there.
For instance, not everyone can become an entrepreneur, because being an entrepreneur takes time and passion for the business. Also, not everyone can become a doctor, farmer, or a pilot.
To become a successful trader, you need to have a lot of passion for the financial market and follow these trading advices.
You also need to be patient and resilient even when things don’t go your way. This is because things will not always go your way. At times, you will open trades optimistically only for them to go south.
Similar, you can't trade everything on the market.
#4 - Many People Fail
The so-called experts never tell you that many people who get into trading fail. This is a fact.
As explained in the first step, many people like to follow the wide road. In this road, they trade without knowing what they are doing. They open their trading platforms and place a trade without doing any due diligence and lose their money.
In fact, several researchers have found that only less than 20% of traders make it. Therefore, you should do your best to become a part of the minority side.
Related » The best day trading strategies to try
#5 - Trading Is Not Always Fun
Most experts do not tell you that trading has its ups and downs. They show you their big houses, cars, and jewelry, but don’t tell you the sleepless nights they have gone through. They also don’t tell you the losses they have had to get where they are right now.
The fact is that trading has its ups and downs. Many time, trades will not go your way: you will make losses, and you will be stressed. By understanding this, you will be at a good place to trade and make good choices.
Related » Fun Things Traders Can Do In Their Free Times
#6 You can’t stop to learn
Learning is an important part in all industries. For example, teachers regularly go through new training to boost their skills. Similarly, companies spend billions of dollars every year training their employees. The same should apply to your trading career.
You should dedicate yourself to learning new skills no matter how successful you are. One of the reasons why this is important is that the market is always evolving.
For example, in Q1 of 2021, the concept of Wall Street Bets (and meme stocks) became popular among traders. As such, people who embarked on a learning path made substantial returns.
Explore new opportunities
Learning will also open up your mind to new opportunities. For example, if you are used to trading stocks, learning more about new assets like cryptocurrencies and fan tokens will help you become a better trader in them.
Fortunately, there are many ways to learn about trading. For example, you can enrol in an online course about the sector. Further, you can use YouTube videos, free web content, and even books.
#7 You don’t have to trade all the time
A common thing that experts will not tell you is that you don’t have to trade all the time. It is perfectly okay to just stay out of the market in some cases.
For example, you can take some time off if you make a big loss. Doing so will help to protect you from making irrational decisions. Similarly, you can stay out of the market in highly volatile market conditions.
Experts are great in guiding you in the financial market. However, many of them will simply not tell you some of these points.
You will experience then in the market when you start trading. Some of the other things they will not tell you are on the importance of being part of a trading floor and the benefit of having direct market access.
Useful external resources about Trading Advices
- 10 Day Trading Tips for Beginners Trading Academy