1- Most People Are In It For Their Personal Gain
The only person you can rely on during your trading journey is yourself. It is imperative that you understand that there is no stranger out there who wants to truly help you become a profitable trader without gaining something out of it.
There are some mentors who seem to be very nice people, and who possibly do want to help you. Chances are, though, that they will stop being helpful the second you stop paying them. Is that really the kind of mentor you want?
To find a trader who really wants to help you, you’re going to need a bit of luck. They are going to be a long time friend, a family member, or someone who has no reason to use you for their personal gain. This is going to be a matter of analysing whether or not this person is helping you for good reasons.
2-You Are Going To Lose
If you come in the trading game with the mindset that you will be the chosen one who only makes correct decisions, you will end up angry with an empty account. If you follow many traders on social media platforms, it may seem like they always win (and they win big, too). I can guarantee that anyone who is only sharing winning trades cannot be trusted, as they are obviously hiding their losses. Why should you trust someone who is being dishonest with you?
The biggest mistake you can make as a trader is to think that you can become good enough to avoid losing trades. No matter how experienced and talented you are, there are certain variables in the markets that cannot be predicted.
It is also statistically sound that you will have very long strings of losers, especially if your win rate is not very high. You should learn to control your emotions from the beginning if you want to last long in this field.
3-Overestimate Rather Than Underestimate
If you come into the trading game with the belief that it’s going to be a good time, you should prepare yourself for a surprise. Most of your trading education is going to be composed of reading books, learning strategy parameters, and most importantly practice.
If you underestimate the amount of practice you will need to master a strategy, you are going to find yourself hopping around from strategy to strategy in search of a magical recipe. In the end, the only strategy that will work consistently is the one with a positive expectancy, and that you have practiced over thousands of trades, which you know like the back of your hand.
There are practically no rewards for underestimating any task in life. You should always be ready to work harder than necessary to guarantee your success. If you think that doing minimum work will get you in the 10% of traders that are profitable, you should rethink whether trading really is for you or not.
4-Don’t Wait Too Long Before Getting Into The Markets
However you may be prepared to trade, you have no way of understanding what trading is actually about until you get into the live markets, with your money in danger.
Since Forex gives the opportunity of trading very small amounts of money, I believe that new traders should open very small accounts early in their trading journey to get an idea of what opening and closing trades feels like, and to experience unpredictable movements.
Instead of studying for months before getting into the markets, I suggest that you start risking small amounts of money early to decide whether trading is for you or not.