8 Keys To Share Trading Success

By Dale Gillham

This week was a little out of the ordinary for me as rather than sitting in front of the computer analyzing stocks and all the other fun stuff I do here at Wealth Within, I had the opportunity (as our education consultant Michael was away sick) to get on the phone and talk to people who were looking for the path to share trading success and as such were interested in how they could achieve that by enrolling in our Diploma of Share Trading and Investment.

I had a number of interesting conversations with all sorts of people and it was refreshing to get perspective on where some people are at in their lives and importantly how trading can assist them in achieving financial and lifestyle goals. Learning to trade is not hard, however what I found in my discussions with these people is that making the decission to start the journey is very hard for some. Not making a decision is easy as the outcome is already determined, however your also don’t become a successful trader.

An interesting conversation I had with a gentleman revolved around the steps to trading success as he wished to become a consistently profitable and successful share trader. During the conversation I took this gentleman through what I believed to be the most important aspects of share trading success and becoming a great trader. After I got off the phone I decided to jot down some notes so I could share my comments n to him with you so that you too can know what it takes to become a successful trader.

1. Get Educated & Get Profitable

Straight off the bat, getting yourself some quality education is the first step in becoming a good trader. ‘Quality’ is the name of the game here. There are hundreds if not thousands of cheap, crappy courses out there that will teach you nothing more than what you can find in a $9.99 book on Amazon. You need an education program that is tailored to your trading goals and will provide you with the outcome you’re after. For example there’s no point investing in a forex course if you are looking to grow your wealth through buying and holding quality stocks. ‘Getting educated also doesn’t mean joining a forum and listening to fictitious /faceless/nameless posters spouting off information about what you should or shouldn’t do. If someone does not use their real name and allow themselves to be contactable outside the forum then I suggest you take very little notice about what they say as to this date I have never met a full time trader who goes into these chat forums.  Remember you want to ensure that you are dealing with a reputable company who is accountable for hat they teach you, such as Wealth Within where the education is recognized worldwide and are accountable to the government for the quality of the course. If you are new to trading and not sure if you really want to trade, or just want to try before you buy so to speak, why not get some basic skills and a solid foundation for your trading by enrolling in our ten lesson trading education program Trading Mentor.

2. Find a Mentor

Trading can be a lonely game so you need someone of a similar mindset who is in a position you want to be in to bounce ideas off. An old mentor of mine once told me that if you want to make a million dollars find a millionaire and follow them around and listen to what they say to do. So if you want to trade successfully find successful traders like the team here at Wealth Within. The entire team has completed the Diploma course or higher (Advanced Diploma etc.) and each support member is a successful trader in their own right. Why risk your trading education on the false hopes of some faceless person in a forum or worse on a black box piece of software sold to you on the promise of easy riches. It just makes sense to get involved with people who walk the talk as this will cut your educational journey down considerably and give you more time to focus on the journey to share trading success are you become the trader you really want to be.

3. What Do You Want from Trading?

I usually stump most people with this question after all it sounds very simple, but it is a very important question when it comes to becoming a successful trader. What exactly is it that you want to achieve from trading an here is a hint, it is not necessarily for the money. For example, you might like to trade because you like to travel and trading allows you to do this and still support yourself financially. If you chose you can be anywhere in the world and as long as you have a decent internet connection, and to me that means freedom to do what you want when you want. Your why may be different, and  I have spoken to people who want to be able to spend more time with the family, others who simply want to pay off the mortgage faster, some want to help others such as charities. Whatever it is for you, what I do know is that you must work out why you want to become a trader as once you do the journey becomes clearer, when it becomes clearer then what you can focus on what you need to achieve to get the results you desire. In the Trading Mentor lessons we have included some great goal setting strategies that hep you nut it all out for you, so you get on the right path to share trading success.

 

Knowledge + Experience = Share Trading Success

 

4. Dip Your Toe in the Water

In order to find what trading tools and markets suit you and will get you to your trading goals in the most efficient way possible don’t be afraid to dip your toe in the water across a few markets and strategies. There is a huge number of ways to make money in the market, from CFD’s to Forex to options to direct share investment. Grab some play money (money that you can risk and it won’t hurt your bank balance) and muck around with a few platforms. If one doesn’t work for you, great! Move onto the next and keep following this system until you are confident in the market or markets that suit your trading style.

5. Understand it’s OK to Lose

This has to be one of the areas that really impedes on success for those new to trading. As human beings we have a natural aversion to risk and loss. It’s a safety mechanism inherent with everyone, in other words we don’t like to lose. In contrast, when it comes to trading nothing ever works 100% of the time. To become a successful trader you must internalize a contrarian view that losing money on a trade from time to time is OK. A strategy I learned a long time ago that helped me put losing trades into perspective is this – losing trades are simply the cost of a trading business. Think about it this way, if you run a business you have expenses that are deducted from total revenue with the resultant dollar value being your profit. This is the same in trading. Losing trades are simply the expense of your trading business. Your job as a successful trader, just like any business owner, is to keep expenses (losing trades) low and profits high. As long as you are following your trading plan and as long as you have proper risk and money management in place it’s OK to lose.

6. Train Your Brain – Use Price Action Not a Crappy Black Box ‘System’

For those of you who are regular readers of my blog posts you will know that we occasionally talk about black box software companies promoting automated trading software with promises of making thousands over night with the click of a few buttons. Unfortunately, their promises really are too good to be true.  Do you think the likes of Warren Buffett or George Soros use ‘black box’ systems to trade or invest? Of course not and neither do any professional traders as if it was that easy to pay $10,000 or more for software so you could turn off your brain and make money then all the professionals would already be doing it, yet we don’t. All professional traders use what I like to call a ‘trading edge’ or in other words a solid trading strategy. A plan they have perfected over a period of time that produces the desired profits from the markets. Hitting a few buttons on a keyboard is not a trading system. Make no mistake, becoming a great trader takes time – generally a few years – but is one of the most rewarding businesses on the planet. Becoming a trader means putting in the work (hard work) to get the results.

7. Build a Trading Plan

If I had a dollar for everytime I said ‘If you fail to plan you plan to fail’ I would……….. well you know. Every successful trader I know has a documented trading plan that details exactly how they trade a market or markets. A trading plan does not have to be a long or tedious document but needs to spell out in simple terms your ‘trading edge’ (how your trading strategy), your risk and money management rules as well as some positive reinforcement from psychology rules or how you approach your trading. Most traders don’t have a plan and work from a base of emotion, heck most do not even use stop losses. This is the sole reason why 80%+ of traders out there don’t make money. Be one of the 20%, put together a plan and stick to it.

8. Trading is a Business – Treat it Like One!

If you are serious about becoming a trader then you need to approach your trading just like a business. This includes having a trading plan as well as a Trading Management Plan (think of this like a business plan that outlines your vision and goals of your trading). You must have watchlist/s established. Set times where you analyse the market or markets you are watching. You must have the correct financial structure whether that be through a trust or other means. Those who treat trading like a hobby will remain a trading hobbyist forever and the only way to turn this around is to treat your trading like a business.

So there you have it! Eight keys to share trading success. Remember success starts with a decision, so from here you can do nothing, do something or procrastinate and only one will get you to your goal of being a successful trader.  If you are not sure where to get started check our the Trading Mentor lessons. If you are serious at becoming a successful trader then take some time to do what the people I spoke to on the phone were doing and that is talk to us about how the Diploma Of Share Trading and Investment can help you.

Good luck and good trading!!

Dale Gillham

Wealth Within