“Risk comes from not knowing what you are doing.”
Warren Buffett, one of the greatest investors in history.
Welcome trader, to our kitchen. Today we will break down the ingredients of a rare, special, very expensive and highly desired dish for people like you and us: success.
First, we will give you the recipe with the list of ingredients that is 100% effective and that only requires you to work hard at first, and you will see how the final result is on point.
Spoiler Alert: There is no such recipe.
The market is alive. There are no magic formulas, you have to get in the game.
The challenge of being a trader
Every day that passes, being a trader is a more and more difficult challenge.
It requires a great deal of time, effort, education, practice, but more than anything, discipline. However, your financial independence and the feeling of freedom that we can obtain are completely worth it.
If we take a look at some statistics, we will find that approximately 90% of traders do not achieve consistent profitability in their investments because they do not have the necessary preparation.
What hinderss us from taking off
Let's take a look at three very common mistakes:
I don't have enough knowledge: I entered the trading world without a coherent understanding of what, how many, or how markets are; nor the basic strategies. Possible result: investments that are not very or not intelligent and loss of capital.
A trading plan? Should I have one?: Maybe you would be better off with several. Entry and exit points, risk management strategies, emotional management (very important), position size, etc. Without a plan, any factor, whether minimal or important, will make you stumble and fall.
I have to take advantage of everything, I can't miss anything: You said you after sitting for 18 hours straight, emotionally and physically exhausted, making perhaps too many trades in a short time and with no opportunity to understand that this is a field of great patience. A very important issue is that as a trader/investor I must rest and recover in order to continue my work effectively and productively.
Let's get to work: let's go for those results
Learn more and better: by researching, you will find many valuable, free websites that can offer you a good general foundation to start with.
We recommend our YouTube channel with a lot of free valuable content, as well as the Warrior Trading and Ryanair Teo channels that are well-known in the industry.
If you are interested in something more personalized with 100% live professional accompaniment and more than 100 hours of content, take a look at our specialized courses.
Track and evaluate your progress: This will be very helpful in identifying your patterns, strengths and weaknesses in your operations. We recommend that you include the reasons behind your decisions, the entry and exit points, and their results.
Connect with experienced traders: Ask, investigate, and take note of advice from people with whom you can have valuable conversations. Ask them to tell you their story and give you tips on how they build their business plans. A key point in this recommendation is to be humble; seeking and asking for support is not a sign of weakness, but a desire to want to grow and improve.
Stay updated, staying behind is losing money: Today, managing your risks with specialized AI tools, for example, significantly increases your projections and analysis of the market. And this technology, in which we are already experts, will not stop growing.
This, together with being up-to-date on the news, the movements of large companies, and the strengthening of your own judgment, makes the difference in a positive or negative outcome.
Do not skip learning stages. Find your rhythm, look for better tools, and feed your own curiosity every day so you can build your own investment style.
We are eager to see your progress and for you to share your achievements with us.
In the meantime, the market is waiting for us.
Let's go for it. Until soon, traders!
REFERENCES
For this article, prompts have been used to request information
interpreted and provided by AI (Google Bard). Written and edited
by Kevin David Terán and verified by Pedro Arizaleta and Erwin Sánchez