The stock trading profession is one of the most critical tasks in the world. You might have a huge amount of money but this doesn’t mean you can become a successful trader.
Trading is not about investing a big sum of money rather it should be considered as an art. A person who is successful in the traditional business might fail to become a professional stock trader.
In fact, the success rate is also very low. Even after all these challenges, the rookies often ask, whether it is possible to become a professional stock trader in less than a year.
Well, the answer greatly depends on the person’s action. But in general, you can become a professional stock trader within six months.
Becoming a profitable stock trader in such a short period of time requires hard work, patience, and devotion. Without having these three qualities, you can never succeed as a professional trader. In fact, most professional traders have spent their time developing these unique traits.
Knowing Your First step
The critical part of the stock trading business is not about the profit factor. As a new stock trader, you should not be concerned about the money which you are going to make in the long run.
Instead, you should be preparing yourself in the technical and fundamental analysis sector. Technical analysis will allow you to find the profitable trade signals in the market. On the contrary, you can assess the quality of the trade signals by evaluating the fundamental data.
Influence of fundamental factors
The novice traders often think that the news factors can be ignored in the retail trading business. But the news is the key component that drives the price in the stock market.
Unless you learn to decipher the news data, you will never get a clear idea about the market direction. The professional traders are trading shares after analyzing the news data. They know very well that without following the news factor, they can’t make a profit based on the technical data only.
Learn Price Action Trading Strategy
Since you want to learn trading within a short time, we strongly recommend that you start learning the price action trading strategy.
By learning to analyze the price action trading signals, you should be able to take the trades with a high level of accuracy.
Most importantly, you will become more skilled with your trade execution process. Some of the rookies may say, price action trading method doesn’t really work.
Well, if you trade the market in the lower time frame, you are not going to get any real benefit from the price action confirmation signals. So, use the price action confirmation signals in the higher time frame only.
Managing your risk exposure
Money management is one of the most important factors in the stock trading business. Even after having a robust trading method, many retail traders fail to make the right trades in the market.
They mess things up since they trade the market with big lots. In order to survive in the stock market, you must learn to trade at low risk.
Try to maintain a decent risk to reward ratio in each trade so that you can cover up the losses with a big smile. Learn to accept the losing trades since you never know the outcome of the trades.
Practice A Lot
You should spend the first three months in the demo trading environment. Try to develop your skills as a professional stock trader and trade the market with fixed sets of rules.
If you manage to gain confidence within the first three months, you may invest a small amount of money in the real market.
Follow your trading strategy and stick to the rules. Soon, you will gain true confidence and start taking the trades like a true professional trader.
But remember, you will often become emotional as a rookie trader. Control your emotions at any cost or else be prepared to blow up the trading account.