7 Steps to Becoming a Profitable Trader

Evolved Traders

The steps to finding success as a trader

The 7 Steps to Becoming a Profitable Trader

I've spent the last 7 years figuring out what it takes to be a consistently profitable trader. This guide is an

 

attempt to break down much of what I have found out that works for me and others.

 

 

1. The long game

 

Trading is one of the hardest games to play and master in this world.

 

It's going to be hard work, many people fail trying to get rich quickly. With that approach, trading is more

likely to lose you money quickly.

 

Focus on the long term. Becoming a master at anything takes a long time.

 

2. The biggest trading pitfall

 

There is a trap almost every aspiring trader falls into when they first start out trading.

 

Jumping from strategy to strategy when they don’t have immediate success with it. It’s important to find a strategy that works for you.

 

But once you find that strategy you must stick with it.

 

It’s likely you won’t have success right away because understanding even a simple strategy takes time. The never repeats itself so getting used to just that takes time.

 

The biggest key to success with strategy I have found is keeping it as simple as possible. Focusing on one strategy or pattern and not over-trading.

 

3. Start Small

 

The most costly mistake I see people make when they start is they don't start small.

 

They get excited about finding a strategy that really fits how they want to trade and they jump right in with as much money as they can. This is a good way to lose a lot of money.

 

As unexciting trading with a simulated or fake money account is, you have to practice proving that you can consistently make money with the strategy first.

 

4. Journal

 

You will want to start tracking every trade you take.

 

It’s important to know:

 

1) What patterns are working
2) What patterns aren't working
3) What mistakes you are making
4) How your emotions are affecting your trading
 

There are a couple of ways you can journal your trades. You can set up a Excel spreadsheet to track your trades or you can use paid software out there that allows you to import your trades directly from your trading platform.

 

There are quite a few of them. Tradersync is my favorite that I have found. It allows you to categorize and add notes to trades. It has cool features like what day of the week you are most profitable or even AI suggestions about your trading.

 

 

 

5. Switching to real money

 

Now once you have traded on a simulated account and found that you are being consistently successful with your strategy it’s time to take the step to real money trading.

 

When you do this it’s important to start out with a small amount.

 

Trading real money is way different than trading on a simulated account. Your emotions will try to control you and cause you to make bad decisions.

 

6. Begin to master your emotions

 

Understanding how your emotions affect you is the real key to becoming successful long-term at trading.

 

It’s easy to think that strategy is more important but when it comes to trading the hardest part is consistently executing that strategy correctly. Our emotions try to stop us from doing this.

 

Common emotions and their effects:

 

  • FOMO (The fear of missing out) - Jumping into a trade too early
  • Fear of being wrong - Not executing your strategy
  • Greed - Staying in a trade too long
  • Doubt - Jumping out of a trade before it's had time to play out

 

This is just a taste of how emotions can affect your trading.

 

7. Scale Up

 

Once you start to understand how your emotions affect your trading and how to stop them from negatively affecting it you will start to find consistent profitability.

 

 

This is when it’s time to scale up your account.

 

There are multiple ways to do this but I always suggest scaling up in smaller amounts than you think. You can always scale up again quickly if it wasn't enough. But it’s hard to scale back down if you’ve already blown up your account.

 

When you scale up, the emotional intensity of trading will increase again and you will have to get comfortable with the new size.

 

This is how the cycle of scaling up works:

1). Increase trade size

2). Emotional intensity increases

3). Adapt to new trade size

4). The new trade size becomes the norm

5). Increase trade size again

 

Trading is a never-ending game of improving even once you get to the scale-up phase of trading there will always be challenges.

 

Summary

 

In Summary, it's a long journey.

 

Trying to be consistently profitable without a strong strategy and path is almost impossible.

 

The best traders out there have found a strategy that they stick with through thick and thin. Repeating it over and over mastering it over time. 

 

To get started, do the following:

 

1). Find a strategy that fits how you want to trade.

2). Practice.

3). Journal. Find what's working.

4). Get consistent results

5). Switch to real money

6). Master your emotions

7). Scale up your account slowly. 


 

📙 Whenever you're ready to take a deeper dive into my trading strategy and how you can consistently execute that strategy with a community at your back. Check out the Evolved Traders Bundle

 

 

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