From Zero to Hero: A Beginner’s Guide on How to be a Successful Trader – Introduction
The financial market can be rewarding to both investors and traders. In fact, in the list of the world’s richest, the people who have made a fortune in the financial sector. Warren Buffet comes to mind as a person who has made billions of dollars as an investor in a span of more than 70 years. Other investors like Ken Griffin have made money by being traders. This has given him a fortune of more than $12 billion. This article explains a simple process through which a beginner can get started in the financial market.
First, you need to have interest in the financial market. Without interest, it will be almost impossible for you to succeed as a trader. This is true in all other fields. For example, to be a successful teacher, you need to love teaching. Similarly, to be a successful truck driver, you need to have interests in the field.
Second, you need to spend your time learning about the market. There are many ways to learn about this. For example, you can read books, which you can buy online. Alternatively, you can enroll to an online class using platforms like Udemy and Udacity. These online ‘schools’ will give you the knowledge and expertise of doing the trading.
Third, you need to start trading and investing. Learning alone will not help you become a successful trader. Instead, you should do the best you can to start investing. Fortunately, you don’t need a lot of money to do this. Indeed, there are platforms that can give you an opportunity to trade with as little as $100. As you start, you will make mistakes, which is fine. It is these mistakes that will help you become a better trader.
Fourth, keep your job or continue with your education. As you start the trading career, you might be tempted to drop out of school or quit your job. This is wrong because of the risks associated with the financial market. This means that you can see your profits disappear within a day. Therefore, to mitigate these risks, you need to continue with your normal duties while simultaneously trading. This will give you money in the two sides.
Fifth, you should now start fundraising to grow your funds. This stage should take a few years of generating consistent returns. If you have a successful track record of generating returns, you should raise funds from your family and friends. These funds will help you increase your returns. They will also help you achieve more success by helping you be more grounded. However, you need to remember a few things. First, you should only raise a few amount of money in the first place. You don’t want to raise money that you can’t handle. Second, you should have a legal binding document to caution you from liabilities. This is a common mistake that many money managers do. Without the legal document, the investors can easily sue you. Finally, you should be honest to your investors. In this, you should update them periodically about the performance of the fund. You can do this in a weekly email explaining the performance of the fund.