Key Takeaways
- Trading is a lucrative endeavor and, as such, requires traders to build a sustainable trading edge.
- Compounding and trading without emotions are just aspects of becoming a profitable trader.
- Trading is a long-game business, not just a hit-and-run skill that could lead to accounts being blown out.
Profitability in the financial market can be daunting for traders. It requires having a trading edge, psychology, and sticking to your plans to become a successful trader. Despite all of these, traders and investors battle with the fear of losing money, which is unavoidable in the cryptocurrency market.
Although trading takes years of practice to develop a system that leads to a high return on investment, many newbies and struggling traders have struggled to attain such heights, leading to advice from expert traders who have become profitable over the years.
This article discusses step-by-step guides from top crypto traders who have become profitable and how beginners and experienced struggling traders can break out of the web of unprofitability to attain much success as traders with a track record of success.
Steps To Becoming A Profitable Trader
Here are the steps outlined by Ali Martinez to attain full profitability as a trader and avoid blowing up accounts;
Respect Risk
Trading involves lots of risk, and as such, losses are inevitable in the financial market. Professional traders with good profitability records have learned to minimize their losses while, in the long run, the profit outweighs the losses.
Avoid Flashy Wins
Real traders focus on developing their craft and having an edge over the market rather than flashing their wins on social media. If traders are not telling you how to become better at trading craft and instead flashing their craft, they are selling a dream that, in most cases, is not realistic.
Develop An Edge
Entering a trade with a defined edge to profit from the market is like donating money to those who have one. It could lead to frustration, leaving many to quit this skill before they know it. Trading the financial market has attracted the best of brains. This requires having an edge that consistently gives one an advantage ahead of others. Follow the run of no edge, no trade.
Plan Your Trade
Although traders cannot trade like robots or without emotions, they need to execute their trades based on what market data provides, not on emotions. The market doesn’t care about our emotions and rather punishes those who can’t control them.
Play The Long Game
Wealth comes with consistency and the long game. It is not achieved by hitting a few big runs that eventually lead to account wipeout, but by compounding over small wins and edges. Trading is not about being right but about making money and managing risk over an extended period.
Conclusion
Trading remains the best skill many have tried to acquire due to its potential to provide endless financial freedom. Although attaining profitability can be challenging, many traders have achieved this goal through consistency and building a long-term plan or system that works.
