The Student Room Group

5 Things I have learned in 5 years of trading!

1) A broker is not that important. 90% of them are fine so use whatever one you are comfortable with. I use CedarFX as I use Bitcoin to deposit and withdraw and it is very quick, also the tree planting is good. It all helps.

2) Social media “gurus” often don’t actually trade themselves and make their money conning the vast majority of people coming into trading looking for quick cash don’t get caught out!

3) Nobody can give you a ready-made strategy and then send you off to start making money. A strategy is something personal to you in terms of time, risk tolerance, psychology, speed of the market etc. Take bits from different sources and then take the time to formulate and test your own strategy that fits your own parameters. There is no “one-size fits all” in trading.

4) Trading of any type is NOT A GET RICH QUICK SCHEME! It takes time for the above reasons to first learn the basics and then formulate a strategy, test it thoroughly and implement it.

5) Set achievable goals when you first start break even at the end of the month might be a great target for you and that is fine. Not losing long term is priority number one to protect your capital. Don’t compare your 1000hrs of practice to another person’s 10,000hrs. Be better than you were 6 months ago and focus on that.

What else have you all learned in your time trading?
Reply 1
Thanks for the information!
Hi! I haven’t been trading nearly as long as you have (just over a year now) but I’m glad you pointed out several of these things. I don’t think that beginners come in aware enough of the “too good to be true” promises floating around and most people don’t have a clear idea of what to really expect when it comes to a realistic profit you could expect based on the time and money you put in.
Personally, I struggled to learn to keep my spirits up after losses in the very beginning. I didn’t have a ton of extra money so even a $10 loss really bummed me out at first. Thankfully, I got past that and learned that it happens and I’m able to let it go or do something to relax when it happens.
Still haven’t been at it for that long, so I’m sure I have a lot left to learn. I enjoyed reading - thanks for posting!
Original post by sebking1109
1) A broker is not that important. 90% of them are fine so use whatever one you are comfortable with. I use CedarFX as I use Bitcoin to deposit and withdraw and it is very quick, also the tree planting is good. It all helps.

2) Social media “gurus” often don’t actually trade themselves and make their money conning the vast majority of people coming into trading looking for quick cash don’t get caught out!

3) Nobody can give you a ready-made strategy and then send you off to start making money. A strategy is something personal to you in terms of time, risk tolerance, psychology, speed of the market etc. Take bits from different sources and then take the time to formulate and test your own strategy that fits your own parameters. There is no “one-size fits all” in trading.

4) Trading of any type is NOT A GET RICH QUICK SCHEME! It takes time for the above reasons to first learn the basics and then formulate a strategy, test it thoroughly and implement it.

5) Set achievable goals when you first start break even at the end of the month might be a great target for you and that is fine. Not losing long term is priority number one to protect your capital. Don’t compare your 1000hrs of practice to another person’s 10,000hrs. Be better than you were 6 months ago and focus on that.

What else have you all learned in your time trading?


It took you 5 years to realise this?

The other known social media swindle is they buy both sides of the trade then only show the winner when they con people into following them, or selling them advice etc.
Agreed that it is certainly not a get rich quick scheme! Some good points in here.

Also, you can not buy experience. Time in the markets is one of your most valuable assets.
Reply 5
Original post by sebking1109
1) A broker is not that important. 90% of them are fine so use whatever one you are comfortable with. I use CedarFX as I use Bitcoin to deposit and withdraw and it is very quick, also the tree planting is good. It all helps.

2) Social media “gurus” often don’t actually trade themselves and make their money conning the vast majority of people coming into trading looking for quick cash don’t get caught out!

3) Nobody can give you a ready-made strategy and then send you off to start making money. A strategy is something personal to you in terms of time, risk tolerance, psychology, speed of the market etc. Take bits from different sources and then take the time to formulate and test your own strategy that fits your own parameters. There is no “one-size fits all” in trading.

4) Trading of any type is NOT A GET RICH QUICK SCHEME! It takes time for the above reasons to first learn the basics and then formulate a strategy, test it thoroughly and implement it.

5) Set achievable goals when you first start break even at the end of the month might be a great target for you and that is fine. Not losing long term is priority number one to protect your capital. Don’t compare your 1000hrs of practice to another person’s 10,000hrs. Be better than you were 6 months ago and focus on that.

What else have you all learned in your time trading?


I think the broker is no longer as big an issue as it once was. There are so many out there now that are solid and reliable. Another is people being afraid of hard work and not having the commitment to ride the waves of success and failure. This is a business and needs to be treated as such. I think it's key to make sure you prepare yourself for lots of set backs like with any business but i have to say it will all be worth it when you have the time freedom to trade where you want and the money to do as you like.

One i would add is making sure you take trade management into you trading plan. So many have an entry and an exit i think you need to be absolutely sure of how you'll manage the trade when certain things happen either you let it run and let your risk to reward play out or you take partials. There can't be in between it has to one or the other. That comes down to your risk tolerance and your own personality
I'm pretty sure anyone could tell you these 'lessons' without even trading, let alone trading for 5yrs. They're just common sense and an awareness of incentives in a marketplace....

Wishing you lots of nice alpha though nonetheless 😅
Agree with BenRyan99 :smile: these lessons sound sensible but not for 5-year-long experience in trading, my opinion. Thanks for sharing them anyway!
(edited 2 years ago)
Reply 8
Original post by mnot
It took you 5 years to realise this?

The other known social media swindle is they buy both sides of the trade then only show the winner when they con people into following them, or selling them advice etc.


No of course not and to be honest there are more than 5 things I have learned 😂 but I just tried to round up 5 key takeaways. But you're 100% correct and the lack of transparency is rife in the industry sadly.

Spoiler

Reply 9
Original post by BenRyan99
I'm pretty sure anyone could tell you these 'lessons' without even trading, let alone trading for 5yrs. They're just common sense and an awareness of incentives in a marketplace....

Wishing you lots of nice alpha though nonetheless 😅

While I do agree with your point about them being common sense, it's apparent that many lack it. They seem abitrary points but I see them ignored so often in beginner traders.
Original post by sebking1109
No of course not and to be honest there are more than 5 things I have learned 😂 but I just tried to round up 5 key takeaways. But you're 100% correct and the lack of transparency is rife in the industry sadly.

Spoiler



It's sometimes the basics that people get caught on and all valid lol but the lack of transparency is so clear for all to see. It is what makes this industry so hard to be successful in. For every gem there is 100 pieces of dirt lol
Reply 11
Original post by LuckyMac
I think the broker is no longer as big an issue as it once was. There are so many out there now that are solid and reliable. Another is people being afraid of hard work and not having the commitment to ride the waves of success and failure. This is a business and needs to be treated as such. I think it's key to make sure you prepare yourself for lots of set backs like with any business but i have to say it will all be worth it when you have the time freedom to trade where you want and the money to do as you like.

One i would add is making sure you take trade management into you trading plan. So many have an entry and an exit i think you need to be absolutely sure of how you'll manage the trade when certain things happen either you let it run and let your risk to reward play out or you take partials. There can't be in between it has to one or the other. That comes down to your risk tolerance and your own personality


this is very true for so long i was over trading and not managing my account there where winners and losers but it never mattered as i was not playing the long game. after changing up and making sure i was using the correct R:R with every trade and not chasing my tail my account slowly grew and consistently over time with out having to much risk at once
Original post by sebking1109
1) A broker is not that important. 90% of them are fine so use whatever one you are comfortable with. I use CedarFX as I use Bitcoin to deposit and withdraw and it is very quick, also the tree planting is good. It all helps.

2) Social media “gurus” often don’t actually trade themselves and make their money conning the vast majority of people coming into trading looking for quick cash don’t get caught out!

3) Nobody can give you a ready-made strategy and then send you off to start making money. A strategy is something personal to you in terms of time, risk tolerance, psychology, speed of the market etc. Take bits from different sources and then take the time to formulate and test your own strategy that fits your own parameters. There is no “one-size fits all” in trading.

4) Trading of any type is NOT A GET RICH QUICK SCHEME! It takes time for the above reasons to first learn the basics and then formulate a strategy, test it thoroughly and implement it.

5) Set achievable goals when you first start break even at the end of the month might be a great target for you and that is fine. Not losing long term is priority number one to protect your capital. Don’t compare your 1000hrs of practice to another person’s 10,000hrs. Be better than you were 6 months ago and focus on that.

What else have you all learned in your time trading?


Really good points
I do believe finding a good broker is a must
i agree Seb, point 5 for me is key
Nothing beats experience and that's something you can't learn overnight or buy with a lot of money. The best way to beat the markets is to lose, learn and go again. It can be done with tiny lot sizes so the losses don't break you. Once you've cracked it this game is scalable so the sky is the limit.
Original post by Keith201
Really good points
I do believe finding a good broker is a must

Agree with you. There are a lot of people out there having withdrawal problems right now because they opened an account with the wrong broker, but the broker doesn't make or break you.

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