There are several reasons why people take up trading, earning an extra income being the top of the list. You might have come across many online stories of how traders go from zero to hundred seemingly overnight, finding success and rolling the big bucks from trading effortlessly.
In reality, this is rarely the case. After decades of experience in the trading space, we can safely say that to succeed at trading, there is no shortcut. Just as with any skills, trading requires constant learning and honing of skills.
That is why in this article we’ll evaluate some key rules, tips, and methods to be profitable when trading. While the market can and most definitely will fluctuate, if you follow these teachings you’ll be able to better handle any turbulence that comes your way.
By developing not only your trading skills but also your thinking skills, you’ll be able to conduct a more thorough analysis of the market before making any decisions.
How difficult is it to earn a profit from trading?
You’ve probably heard many success stories regarding those who made millions in the market. For every person that is successful, there are probably hundreds who failed. Playing the market is just like almost any other thing in life – the path to success is never an accident.
If you want to level up to the hot-shot professional traders, you’ll need to develop your skills from the ground up. No one has hit the jackpot overnight so it’s incredibly rare that you will.
So yes, it is difficult to be profitable in trading if you do not know what you are doing and have high expectations. The best mindset to have when just starting is to be aware that you are a beginner, and therefore, you probably won’t see the results you’re expecting right away.
Take your time, study regularly, look for advice from experienced traders and avoid taking huge risks. Try keeping a trading journal so you’ll see how far you’ve come from when you first started. As time progresses, you may not be earning the profits you wished for, but you’ll certainly see progress.
Are there certain rules for trading profitably?
In trading, there is no well-defined set of rules that will lead you to success on their own. If it were that simple, everyone would be rich by now, wouldn’t they? The reality is much more complex than that!
However, it is possible to follow certain rules to be profitable in trading, but they are rules that you will have to define. Indeed, when we start trading, we tend to make the process of entering a position too complex, which often results in financial loss.
Later on, in the learning process, you’ll realize that it is possible to make money with a simple moving average, as long as you apply strict rules. That’s why the only real rule is to create some and then stick to it.
How do you create your own rules?
There is no miracle, you first have to increase your knowledge threshold through learning, reading and apply them to gain experience. Then it becomes possible to think about a trading strategy as well as the rules for entering and exiting a position.
When this step is completed, you must then rigorously test your strategy based on the price history, backtest your strategy, and adapt according to the results. When you have a profitable strategy that has been rigorously tested, you can then use it in real life.
Tips for you to earn a profit through trading
Once you start trading for real, that’s when the real fun begins!
So far, we have discussed the need to create a set of rules to make it a strategy. On paper, it’s simple as long as your capital is not at stake but once in the market, you will have to fight the strongest enemy of all, you.
The psychological aspect of the financial market is the most important thing to master if you want to be successful in the long run, here are some tips to help you take control of your emotions.
1.Use stop-losses and takes profit
This is the basis of trading fundamentals and we cannot emphasize enough the importance of using stop-losses to protect your capital in case of loss as well as take-profits to allow you to take your gains. Once in place, don’t change them, as this will often amount to a long-term loss of profit. Also, leaving them untouched forces you to discipline yourself.
In order to be sustainable at trading long term, it is necessary to apply strict risk management. Indeed, you cannot afford to lose half of your capital on a losing trade because just like winnings, losses are part of the game no matter the strategy.
Your main motivation should be the preservation of your capital and this is why it is advisable to use a risk per trade of a maximum of 1-2%. This way, you will always have enough capital for the next trade.
3.Apply your strategy 20 trades in a row and more
Once you have tested your strategy and are ready to step into the real world of trading, you would need to take this final leap (possibly the hardest step) – to propel yourself to take one trade after another, regardless of the outcome of the previous one.
Only by repeating this enough times will you be able to trade with the least amount of emotion and therefore with the most success.
How do trading bots help me?
There are several tools that can help you in your search for profit in trading. One such tool is a trading bot. How do trading bots help you? Let’s find out together!
Boost your discipline
Some trading bots are just simple tools that allow you to better manage your positions on different trading platforms. For example, the bots allow you to enter your stop-loss and take-profit without going through the exchange. This helps you gain better control over your emotions and pushes you to stick to the plan. As the saying goes, “Plan the trade, trade the plan”.
Make a profit
Other trading bots, on the other hand, are there to do all the work for you – from taking positions, managing the trades to making profits. A good example of this is the 4C SMART Bots. While some trading algorithms have really good results, it is not uncommon to find those that are pure scams. As a rule of thumb, you should always do your due diligence.
How can you tell the difference? It’s very simple, do your research on an algorithm the same way you would create a strategy, by backtesting and analyzing the results of the algorithm.
Diversify your revenue streams – 4C Affiliate Program
While learning and honing your trading skill, it is possible to find alternate ways of earning revenue to subsidize your expenses. It’s said that you should “increase your sources of revenue, not reduce your spending.” Having several ways to earn an income is an effective way to grow your wealth.
Now at 4C-Trading, you can take advantage of the 4C Affiliate program to gain another way to earn income. While offering the best trading tools to crypto traders and investors, we are also looking to work together with anyone willing to help spread the word about 4C and its products. Doing so can help net you some sweet profits each time a referral signs up for any of our subscription packs!
There are four tiers to our affiliate program, each increasing your earning percentage and granting you some awesome perks as you progress. If you happen to own crypto, trading, or investing-related blog, Youtube channel, podcast, website, or social channel with a decent following, then we’ll automatically boost you up to the gold tier! At this tier, you’ll be able to immediately earn 25% off new referrals when they purchase a pack and resubscribe.
Did we mention how easy it is to get started? Just do the following:
- Head to 4C Trading Affiliate registration page
- Fill out all the needed details
- Log in and head to your dashboard
- Click on the affiliate section
- Obtain your unique affiliate link
- Start linking and promoting!
The best way to start gaining traction with your affiliate link is by putting it in your content pieces and talking about 4C. Before publishing your latest blog article, social media post, podcast episode, or Youtube video, be sure to provide your link in it. This way your audience can find it and check out our 4C products from your unique link. You can also share it with your friends and family so they can get started trading the right way while you get a little reward for the recommendation.