Can you earn a living via trading? Or provide for someone else? The answer is – yes, you can. In this article, I will tell you about our trainee, who became a successful trader. You can learn from his example.
How do you become a successful trader? I usually get this question from the novices, who had already dived into the market and smelt real money. My longtime friend Dmitriy was one of them, he was a newbie trader, when we had this discussion in 2006. At that time, I was loaded with theory and practice, which I was eager to share with him.
Dmitriy made his first step – he started trading at Forex. At that time he thought that Forex is a lucrative business, where you can earn piles of gold with little to no effort. His friends and forum users told him about people, who earn millions trading at Forex – all you have to do is watch the chart and know where to buy cheaper and sell higher. Sounds simple and not giving any troubles and you start to think you’re ready to go!
Of course, these impressions vanish with the first losing trades and wasted deposits. I remember when he wrote me: “Alexander, I’m losing money, what should I do?”. I immediately realised that Dmitriy started trading intuitively, without a trading plan and the market punished him eventually. Actually, the market doesn’t care who you are and what your skills and knowledge are. It is the sole market law and everyone must know it! That is why at our Horizon training course we teach our trainees to “read” the market correctly and preserve their money.
So, what was Dmitriy’s initial mistake? He opened his first real trade and it was profitable. Dmitriy thought he was a pro and opened losing positions with much larger volume. This trading resulted in a wasted deposit.
I call this “trader formation” stage “an unconscious stage”. It doesn’t last long.
After their first losses many novice traders start thinking, if they lack something to trade profitably, and they get into “trader formation” stage 2, that I call “a conscious doubt”.
At this stage Dmitriy clearly realised that to become a professional trader he needed certain knowledge, which could help him trade profitably. He started to spend money on various indicators and advisors, jumping from one system to another. I remember that Dmitriy often asked me to discuss new trading systems. One day I told him to stop and explained that he should choose one trading system and test it properly instead of opting for another one the next day. It is impossible to understand if the system works or not in one day, week, or even month. Dmitriy thought that finding new information would solve all his problems. He read the positive trading results of other people on forums, disappointed by his failures and asked hundreds of questions, some of them quite silly. At some point Dmitriy started to think that everyone tricked him, and it wasn’t working out.
Desperate, he found a paid entry signal service and followed its recommendations even though professional traders told him that entering here is crazy. Of course, he failed once again and became even more certain that Forex is a big scam.
This second stage lasts quite long, up to 3 years. During it, many traders fall into despair and give up. Only about 10% of them continue trading after 3 years: it all depends on trader’s psychology and determination. I had to restore Dmitriy’s ruined psychological equilibrium, and eventually he made it to the third stage of “trader formation” and he never regretted it, despite spending a lot of money and time to acquire that life experience.
Just think. Was it necessary to waste time and money to get nothing in return? It is irrational and senseless, so I recommend talking to professionals before you start trading on real financial markets.
I call the third stage a “renaissance”. A trader comes to realise that their main problem is not trading but the psychology. I told Dmitriy about Edward, a friend of mine, who trades on London metal exchange and uses only two moving averages, the rules of money management and his ability to remain calm during trading. After that, Dmitriy started to read books about psychology of trading, rightfully concluding that no professional trader can give a 100% guarantee of a price movement. Trading in financial markets means trading probabilities.
Dmitriy got down to creating his own trading system, that fits him personally and his mentality. He didn’t get sad when he lost money in a trade – after all, it was systematic and his future profit would cover it. The main thing that Dmitriy learned to do is to follow a strict discipline. It is the key to successful trading. After that, a trader gets to stage 4, which I call a “conscious certainty”.
At that stage, Dmitriy only entered the trade, when the system gave him a signal. Eventually, the system yielded more profits than losses. This stage lasts for about 8 months. Like our trainees, Dmitriy had an algorithm based on Horizon strategy; he had a plan of action for every unexpected market situation.
After that comes the final stage – “unemotional confidence”. You start trading without thinking. Entering a trade becomes a routine, like brushing teeth or eating breakfast. At that stage, Dmitriy didn’t express happiness about $3000 of profit, or $10. He managed to leave all the emotions out of his trades. Due to the non-linear nature of the market, a trader sometimes has to adapt their system to raise profitability and minimise risks, but the trading method itself doesn’t change drastically.
How can you create a trading plan fitting you personally and trade by the strategy? We explain that at our Horizon training course.
Horizon trading system algorithm
- Identifying significant horizons (SMH, MH, STRH) and the trend direction (UPTREND, CONSO, DOWNTREND) on H1 timeframe.
- Waiting for a TOUCH or a BREAK of a significant level (SMH, MH, STRH) on H1 TF.
- Finding an entry, placing a stop-loss and targets (rule of “Safe”).
- Keeping a trader’s log (writing down every deal + screenshot).
That was 10 years ago. Today Dmitriy works as a trader at Dorman Trading clearing company, trading futures. He often recalls our discussions and my advice. Of course, not everyone becomes a successful trader, but the success is not achieved due to some inborn abilities and unique strategies, but due to one’s determination. Don’t give up, if you fail, stay confident and you will succeed! If you want to improve your trading as soon as possible and increase your profit, follow the link below and get free Horizon training course. You will receive an efficient and profitable trading algorithm, understand how to mark your charts using Horizon rules, and also you will learn to avoid typical mistakes and your deposit will grow by at least 20% per month. Just follow the link below:
Get full free Horizon training course here