How to make trading more profitable in 4 stages?

 Many people want to trade. But only a few become professional traders capable of consistently earning. To trade effectively, you will have to learn and practice a lot. Knowing what to learn and how to hone acquired skills is just as important as perseverance and diligence. Today's article is a step-by-step guide to help you improve your skills.

Learn the basics

In any activity, profit-oriented or not, you need to start with the basics. It sounds reasonable, but many novice traders skip this stage and end up with an empty account, and their chances of becoming a successful trader drop to zero. Don't let your conceit dazzle you and don't hesitate to learn the simple things before moving on to the hard ones.

Your trading success often depends on understanding basic economic (and sometimes political, social and psychological) concepts. At the very beginning of the training, try to understand how the price of an asset moves, what trading terms are used most often, what it means to trade an asset. You need to assimilate all the information in this category as it will be useful to you the most. It may take some practice to better understand these concepts.

Keep learning

It is unlikely that you will find it surprising that there are many other things to learn in addition to the basics. At this stage, you need to study the work of different markets (there are many, their working conditions and suitable trading styles are also different). This is also true when choosing an asset class. When working with IQ Option, you can choose between Forex CFDs, stocks, cryptocurrencies, commodities, and FX options.

At the end of this stage, you should have a complete understanding of the modern global financial system, master and use the terminology and understand the difference between assets. Remember the expression: do not trade what you do not understand. Can you, for example, explain what is the relationship between the exchange rate and the interest rate? If not, you probably still need to learn the basics before moving on.

Trading methods

Now that you know what to trade, it's time to learn how to do it. Easier said than applied. Work strategies are never published for free (Who would disclose their source of income?). Most likely, you will need to create your own working strategy. Trial and error works great here. Fortunately, you have a free replenishing demo account at your disposal to test any strategy in practice. Test the strategy, and if it doesn't work as expected, move on to the next one. You can also find a professional trader willing to become your mentor. Books and articles written by such traders can also be beneficial. Don't give up ahead of time - it can take several months to create a good trading strategy.

Gain experience

And now the most important thing. You can learn everything about trading and never become a professional trader. At least until you get some direct experience. It is impossible to win on every trade. However, you can master the work discipline by letting go of your emotions and sticking to the trading system you have invented.

Surprisingly, many traders give up when they are closest to success. Don't be afraid to lose trades, instead focus on your workflow. At this stage, you need to learn from your experience, distinguish between winning and losing trades, adjust your strategy and, if it stops working, come up with new ones.

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