How to be Profitable in Trading

Deciphering the riddle of how to be profitable in trading is the dream of all investors, as it is the most difficult business in the world. We often read and hear different opinions about trading and profitability. Many label this economic activity as impossible, while others think that it is not a skill suitable for everyone.

When we search for trading in the search engine, millions of results appear explaining what it is, how difficult it is and how rich you have to be to be able to make a profit.

In this article we will try to unmask the reality of profitability in this business, as well as overthrowing fears and urban legends that have been spreading over time of this beautiful art called trading.

What is being profitable?

Being profitable does not mean making absurd percentages on a monthly basis, nor does it mean taking 1:15 trades. It means having a positive annual balance, therefore, 1% per month for 12 months means being profitable and yes, obtaining 0.5% per month is also profitable. Having two negative months and still remaining positive for the year is being profitable. Even if you have 4 negative months in a year, you can perfectly well continue to maintain that profitability if the annual balance sheet is positive.

How long will it take me to generate profits?

Practicing a profitable trading that brings regular income is not like taking a degree, that is to say, there is no minimum or maximum time limit. It will depend mostly on strategy, psychology, risk management, capital, etc … In short, it will depend largely on yourself.

Steps to achieve Profitability

If we analyze the productive traders who live from their operations (successes and failures) and obtain constant profits, we can observe that all of them have in common some characteristics. We will call these characteristics:

Productivity Factors in the Purchase and Sale of Assets.

Strategy

It is necessary to have a strategy tested by ourselves, with an optimal trading plan, as well as the operational schedule of the strategy. It is essential to backtest the strategy to be able to trust it. You can learn our strategy for free on our YouTube channel.

Psychology

Many call it “Psycho-Trading”. Having a good mentality is fundamental to be able to be a trader, it is the basis of 80% profitability. The importance of psychology is 4 times greater than that of strategy. We help you for free in our psychology section.

Risk Management

Every trader must control his risk, that is, risk the percentage of the account that you are willing to lose. With the advent of the anchor companies this point was significantly accentuated. What is recommended by many expert traders is to use 1% of the account per day.

Capital

Without capital there is no return, without return there is no profitability. It is necessary to obtain capital to start in this business (as in any other). To meet these needs came the funding companies, which offer capital up to $400,000 in exchange for a percentage of the return you get from that capital.

Why do traders lose money?

The hard thing about intraday trading is to assume that we cannot win each and every trade we decide to take, it is impossible. The best traders in the world also lose trades in the market, that is why it is necessary to have a worked mentality. We have always been taught that losing is bad; we never see it as part of the process or as something necessary. Today’s world is full of dualities and losing and winning are not going to stop being dualities.

It is essential to work daily to develop and improve the mentality, as well as increasing self-confidence, keeping the focus on what we really want, obviating opinions of third parties who do not have the same vision as us and let the results come on their own.