6 Steps to Build Confidence and Success
We all start somewhere – from learning the ropes to taking action. But here’s the kicker: there’s a jungle of options out there, and a bunch of armchair experts waiting to pounce on eager, unsuspecting new traders. Flashback to 1985, when I started – nada no books, no websites, no self-proclaimed gurus. I was drawing charts by hand and gathering data from newspapers. Lucky for me, there was way less noise and nonsense back then.
If you’ve just started your trading journey, or are about to start, here are 6 steps to help you navigate the overwhelming amount of information and build a strong foundation for confidence.
1. Avoid trading by intuition – it amps up the emotional ride. Aim for a proven strategy – one tested, organized, and proven to yield real profits. Make sure it’s repeatable.
2. Your strategy should cover all bases: entry, exit, how much to buy, and portfolio diversification. Forget flimsy tip sheets promising big gains and the regular motherhood statements that get bandied around. They’re usually just opinions, not worth much.
3. Short-term trading tempts with quick cash, but most fail. Short-term means extra challenges – fees, slippage, workload, and stress. Guess who wins? Brokers.
4. The 8th Wonder: compounding – gradual, steady capital growth. It’s not sexy but small consistent efforts over time can turn into significant gains, making it the ultimate financial ally.
5. Year one’s goal: stay in the game, maybe end positive. Most people quit in 3 months, swapping strategies like tissues. Stick with one plan for a year – chances are you’ll succeed.
6. Gut check: Start slow. New traders often rush, wanting everything, now. But they hit speed bumps and change lanes. Stick to a plan for a year or until it’s automatic. Less thinking, more doing.
If you’d like to learn more about designing a repeatable strategy based on evidence, consider our Beginner’s Course or view our turnkey code offerings. Alternatively, take a free trial membership to The Chartist and view our strategies.