Our complete guide to becoming an independent trader in 2023

Understand the reality of independent trading

Independent trading is about much more than just freedom and potential earnings. It is essential to understand the reality of this profession, which includes handling high risks and the need for a solid strategy. The majority of retailers face losses, so it is essential to have a realistic and pragmatic view of the trade.

how to trade in the financial market

Define your goals and create an action plan

Before diving into trading, you need to clearly define your motivations and goals. Use the SMART method to establish specific, measurable, achievable, relevant and time-bound goals. Your goals must be realistic to avoid disappointment and align your efforts with your aspirations.

In the development of your trading planmake sure your goals meet the following criteria:

  • Clear and defined: Identify your goals precisely.
  • Quantifiable: Set up indicators to assess progress.
  • Realistically: Choose achievable goals.
  • Essentially : Make sure your goals are relevant to your overall strategy.
  • Early defined: Set a deadline for your intentions.

Start small and build up gradually

It is advisable to start with a demo account to gain experience without risking real funds. Once you are comfortable, you can start trading small amounts to manage risk and learn to control your emotions.

In addition to the tips already mentioned, emphasize the importance of developing a healthy and disciplined everyday life. E.g, get up at a fixed timeeat a balanced diet, stay hydrated, avoid harmful substances, exercise regularly and practice meditation.

These habits will improve essential skills such as stress resistance, decision making, concentration, responsiveness and learning ability. Starting with small positions, we reduce financial riskswe gain experience, we learn to manage our emotions and we test our ability to navigate the market.

Choose a reliable and safe broker

Choosing a broker is crucial. Choose a regulated broker that offers good order execution and responsive customer support. Be wary of overly tempting offers and make sure your money is protected.

Here is a list of the best brokers:

Investment in your business education

Continuing education is essential. This includes not only understanding financial markets and products, but also developing behavioral skills such as discipline and strategy. Consider books, courses, podcasts and other resources to expand your knowledge.

How to train to become an independent traderHow to train to become an independent trader

Continuing education is essential for an independent trader. It should include a combination of educational resources such as:

  • Specialized courses and training: Look for courses that offer a good balance between theory and practice.
  • Books : Read reference books on trading, risk management and market psychology.
  • Online Resources: Use podcasts, webinars and YouTube videos to learn from experts and follow market trends.
  • Social networks and forums: Join online communities to interact with other traders and stay informed about the latest strategies and tools.
  • Practice and analysis: Put your knowledge into practice and analyze your trades to learn from your mistakes and successes.

By diversifying your learning sources and actively engaging in your training, you will be able to develop a deeper understanding of trade and improve your skills significantly.

download investx app banner investx app downloaddownload investx app banner investx app download

Choosing your trading strategy

It is important to develop a trading strategy that fits your goals and lifestyle. This may include day trading, swing tradingor other approaches. Your strategy should also take into account your level of risk tolerance and your investment options.

Money Management, the basics of an effective independent trader

Money Management is a tactic for all traders, aimed at preserving capital and optimizing performance by managing effectively position size and risk. This concept involves the strategic allocation of funds by market and trade, defining position sizes and using stop-loss to protect the capital against significant losses. Mastery of Money Management is essential to sustainability and success in independent trading, allowing traders to remain active for the long term and take advantage of profitable trading opportunities.

Understanding money managementUnderstanding money management

Keep a trading journal

A trading journal is a powerful tool for tracking your progress, analyze your strategies and control your emotions. You can document your trades, thoughts and experiences to constantly improve your approach to trading.

Here are some important uses for your trading journal:

  • Synthesize knowledge: Allows you to consolidate and review the experience.
  • Formalize goals and strategy: Helps to clarify and document trading plans and strategies.
  • List of new ideas : A space to note new approaches or market observations.
  • Externalize emotions: Provides a way to express and manage emotional reactions to trading.
  • Save transaction history: This helps track past transactions for future analysis.
  • Analyze performance: Helps evaluate the effectiveness of strategies and adjust approaches accordingly.

The Impact of Psychology on Trading

Psychology plays a vital role in trading. Your mindset directly affects your trading decisions and thus your results. Recognize And control your emotions is essential to avoid impulsive decisions based on excitement, frustration or greed.

Having a solid trading plan in place and using a trading journal can help you stay objective and avoid emotional reactions. Remember, success in trading comes not only from winning, but also from the ability to handle losses in a thoughtful and calculated manner.

Becoming a self-employed person, good or bad idea?

While following these steps can greatly aid your journey to becoming an independent retailer, ultimate success depends on your ability to combine hard work, strict discipline and personal fitness. Remember that consistency and commitment to learning and applying these principles is essential to excelling in independent trading.

Independent trading is a risky and very difficult business. Financial losses can be significant, so it is important to act carefully and with in-depth knowledge of the market. Only invest funds you can afford to lose and make informed trading decisions.

Leave a Comment