Copy-trading is one of the most interesting and lucrative ways of earning money from home in India, which brings many people substantial income (main or additional). However, Forex is not that easy to learn. To become a successful copy-trader, you need to know and to apply the basic principles of the financial market, be quick in navigating the changing environment, and, oddly enough, not let the excitement go to your head.
Trading – game or job?
The main mistake of unsuccessful newcomers to copy-trading is that they do not have a clear idea of what it means to make money on exchange rates. They are often confused by the word “game”, which creates the idea that Forex does not require effort, only luck. However, for a successful trader, it is serious work requiring knowledge, diligence, and skills.
What dooms to failure?
Before talking about the personal qualities of a successful trader, let’s talk about his antipode – who is sure to lose money, energy, and time in Forex. So, when should you not open a deposit?
- Figures and graphs make him gloomy, and the necessity of calculations makes him sleepy. If he has never been interested in finance and mathematics, then there is nothing to do with Forex.
- He does not know how to maneuver a big flow of information, analyze it, to draw conclusions. Anyone, who has been on copy-trading platforms in India, sees a constantly updated newsfeed, without keeping track of which it is impossible to predict exchange rates.
- Unwillingness to devote much time to trading. It is impossible to play the stock market from time to time and have success. While you are wasting your time, others are making money.
- Gambling is the main enemy of any trader, which can ruin you in a matter of minutes. You can miss the main thing by getting carried away with short gains, and the subsequent rate fluctuation will lead you to losses.
- Surprisingly, fear of loss is as harmful as recklessness. You must understand that trading is a trade, and in any trade, there are ups and downs. Even the most successful broker has losses, but they must be within the limit, not out of it.
Not everyone can become a successful trader. Like any other profession, trading requires a combination of certain skills and character traits. So, what are the qualities of a successful copy-trader?
- Cold-blooded. The perfect trader is someone who knows how to restrain his desires and appetites, does not succumb to immediate strivings, and always acts following the plan.
- Serious. Do not treat currency trading as a game – it’s work, and not easy. And it must be treated as such.
- Self-disciplined. After all, in this job, there are no bosses, no daily routine. Herein lies the main problem: many people don’t know how to force themselves to work. As a result, you can be distracted by other things, personal correspondence, and little time spent on trading. In such conditions, it is difficult to expect that your earnings will grow.
- Interested in Trading. Brokers are not the only ones who care about this trait. Seminars, training courses, self-study of news, forums, and all available information increases copy-traders knowledge level. It allows being more thoughtful in choosing the model of behavior and the broker whose deals they will copy.
- Able to plan. As a rule, successful traders create a strategy for a certain period, which they then stick to. As a result, they can even plan their profit level quite precisely and very seldom incur losses. At the same time, the strategy has certain expenses, and the copy-trader should be prepared to deal with temporary lows.
- It is worth realizing that a deposit of $10 can only turn into a fortune in fairy tales. To have income, you must invest sufficient initial capital.