Winners VS Losers

I will reveal the secret to trading success and it's probably not what you're expecting. To become a successful trader he needs to know this. Around 90% of all traders lose money, so only 10% manage to be consistently profitable. But what is it that these successful 10% do different than the failing 90%? Well, first let's take a look at the typical trader of the 90% losing traders. Most people that are in this losing category are doing the following. They're somehow hear about trading and they believe that is all about the fancy lifestyle of a successful trader like easy money, work from anywhere in the World, expensive cars and the list goes on. They filled with motivation and greed. These people then sign up to the best broker that they probably found through some misleading commercial. Some people even watch one or two random trading videos before depositing their money to the broker platform. After signing up they usually start buying random stocks due to random reasons. To their surprise, the stocks rarely shoot up in price more from the not they exit their positions with a loss. Before they know it, they become part of the 90% losing trader group. Clearly not all losing traders go through these stages but a big deal of them do. I'm not saying this to mock the losing traders. I'm simply trying to compare losing to winning traders. My point is that consistently profitable traders actually know what they're doing. They usually have years of experience laid out and test the trading system. Furthermore, profitable traders have a trading plan and before they enter any trade, they know what they will do for changes in their position. In other words trading isn't easy. If it would be easy everyone would be doing it. Let's compare trading to other professions now. Would you try to fly an airplane without any guidance, education and practice? If you would, it would probably end through quite bad. Or would you try to perform a heart surgery without going to med school without any practice experience or education? Chances are high that you answered no to the previous two questions. To become a surgeon or pilot or anything else you normally need to go through years of training studying and practice. Why should this be different for trading? Just like no one is born as a perfect heart surgeon, no one is born as a perfect profitable trader. You need to study, practice and work your way up. If you try to fly an airplane without any education you would probably crash and blow up. The same goes for your trading account. Trading without any education, usually leads to you blowing up your account. Don't make the mistake and risk your hard earned money without educating yourself before. The key takeaway here is that you need education to become a profitable trader. The next question is; do you need paid education or can you learn how to trade for free? Both free and paid trading education have their advantages and disadvantages. First of all let’s take a look at the advantages of paid education. One major advantage of paid education is the motivational aspect. People tend to be more committed to things that they actually paid for. This is because they feel like something is on the line. A further advantage is the focus on one strategy. Most good paid trading courses focus on one strategy and teach you everything important for that particular strategy. Most paid education is therefore more specific and relevant than free education. In other words, many paid trading courses of higher quality than free courses. In addition to that, premium costs often come with personal support. Let's move on to the advantages of free education. The most obvious Pro is the fact that it's free. If the free education is bad, it doesn't matter because you didn't pay anything for it. Next up other disadvantages of the paid trading courses.

First of all one disadvantage is the fact that it costs money, therefore something is on the line. If the education is poor quality, you wasted your money. Some of these so-called trading courses are scams so be careful. Another major disadvantage is the lack of transparency. Many trading educators earn all the money from their trading education and nothing from that trading. Just because someone tells you he is a massively profitable trader, does not mean that he actually is. The last but not least, the fact that paid education is very specific is also a disadvantage. It is always good to have a wide general knowledge. Most paid courses focus on their strategies and ignore the bigger picture. Lastly, we have the cons of the free education. Often free trading courses can be less thorough therefore it can generally be hard to find very good and in-depth free trading courses. Thus free education requires a little more work. Before we move on I just want to say that these pros and cons are generalizations. Not all of the advantages and disadvantages applied to all free and paid trading courses. Obviously there are exceptions. As you can see both free and paid trading courses have their advantages and disadvantages. It can be quite hard to pick one over the other. In my opinion it's best to combine free and paid trading education. This will let you take advantage of the pros of both free and paid education. I recommend starting with free education. All basic trading concepts can be learned from free education. I do not recommend spending any substantial amount of money just to learn the basics. You should be able to learn very important basic concepts such as asset types, basic charting, risk management and so on from free education. After doing this, I suggest asking some questions. Are you still interested in trading? Are you still willing to put in more work to learn how to trade? If yes, what trading style fits you? Aspects to consider here are starting capital, time, risk tolerance and so on. As you learned about different asset types, you should have an idea of what asset types fits you. Next, I recommend looking at paid training courses. You should already have a fundamental understanding of trading and the markets in general. Ideally you should also have a preferred asset type like options, stocks, cryptocurrency. When trying to find a good trading course, you should do some research. Try to find a course that fits you, your starting capital, your the time and so on. Look for proven track records and success stories. Generally, if something sounds too good to be true it probably is. Please don't skip the research part. There are countless scams out there so be careful. This is one of multiple ways to learn how to trade but you can do it differently as well. For example you could just pay for everything if you have more than enough money but remember; only the very last step is trading. Don't risk your hard earned money before you actually know what you're doing. Otherwise you will just end up like 90% of all traders. Before starting to trade real money, you should have a good understanding of trading at the markets. You should also have a proven profitable system a concrete trading plan and you should have had loads of education. Even after you start Trading, you should try to continue to learn more. Never follow random trade alerts. Never rely on one or two random indicators. Never listen to seemingly magic trading software. Just do it the right way. Educate yourself and learn how to trade. Remember, if it would be easy everyone would be doing it. The last piece of the puzzle is trading like is your profession and not as a hobby. The secret to trading success is the same as the secret to success in general. It's hard work, experience, education, taking action and practice.