Why Does It Take So Long Time To Learn Trading?

By | March 17, 2022 5:26 pm

I am often asked during my trading sessions  – how long does it take to learn how to trade ? That is a tough question to answer. The short answer is that a diligent person can learn the basics of trading in a couple months. The long answer is that it can take a lifetime to master. Its very important to realize for trader, Master in trading does not come overnight, It takes Years and years of efforts coupled with burning desire to succeed with setbacks market will offer you.

Since most people just want to make a consistent profit from trading , we will concentrate on the time frame for achieving that.

The One-Year Mark

The one-year time frame is the most critical for trading futures. Most new traders like to make huge sums of money right out of the gate. That usually gets them into trouble and almost guarantees them an inclusion into the 80 – 90 percent of people who lose money from trading.

The first year of trading is all about learning how to trade. Achieving breakeven at the end of year one is a victory. Most traders who can at least breakeven after one year of trading will often become profitable traders.

Consistently Profitable Traders

It will normally take about three years of trading before someone can become a consistently profitable trader. It takes a good deal of research and experience before you can reach this level. If you cannot put in the time, effort and discipline, it is a good chance that you may never become a profitable trader.

I highly recommend that new traders try to learn to trade from someone who is already a successful trader. This will substantially speed up the learning curve and some good trading techniques will be learned. If might be difficult to find a trading mentor, but it will help immensely if you can find one.

The best thing you can for learning how to trade  is take your trading slowly, but spend a lot of time on research. Expect many setbacks in the first year as it should be considered a learning year. You should become a successful trader after three years or you are likely not exercising the proper discipline. Also, you may not be putting in the proper amount of time is takes to learn how to trade .

Trading System

  • They trade a robust system or method that wins more money over time than it loses.
  • Their system gives them a reward to risk ratio that is in their favor.
  • Their system or method is proven to work with a live trading record over many markets and trades or has  historical back testing.

Trading with Managed Risk

  • They manage the risk of ruin to avoid blowing up their account.
  • They risk no more than 1%-2% of total account equity on any one trade.
  • They manage risk through proper position size so they do not risk their account and ability to trade int eh future on any one trade.
  • They do not risk more than 6%-12% of their capital at one time across multiple trades.

The Mind of the Trader

  • They have faith in their system or method and continue to trade it even when they are losing so they capture the wins when they start again.
  • Almost all winning traders have come back from blowing up their accounts or losing a lot of money, they persevered while many others quit before they won. You will have to do the same if you do not understand the risk of ruin .
  • Most winning traders have learned to separate their trading from their self worth and ego. They treat it like a business not an ego trip.

Your focus in your trading career should be like a laser on finding the right system & method, learning why it is so important to manage risk then doing it, and having the right mind set to stay disciplined, passionate, and focused to get into the winning circle. With these three elements incorporated into a trading plan you will eventually win big. If you are missing any one of these three elements in your trading the odds are that you will be out of the game quicklyeither after a string of losses, loss of faith in yourself or system, or loss of belief that winning at trading is even possible for you.

 

Traders have to learn to perform decision making, one of the most tiring of human activities, for hours every day without burning out. This decision making for traders comes with extra difficulty since they have to make fast paced decisions with incomplete information. Such intense mental effort can wear down even the best of novice traders.

Only through experience traders can learn to take the mental toll of the fast-paced and uncertain trading world.

Category: Learn Trading Education

About Bramesh

Bramesh Bhandari has been actively trading the Indian Stock Markets since over 15+ Years. His primary strategies are his interpretations and applications of Gann And Astro Methodologies developed over the past decade.

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