How to Become a Successful Live Trader

Today's article discusses different phases that you have to go through if you want to become a successful Live Trader.

Now, I talk to a lot of people who have been trading by telephone, and by internet. They have been a trader for a month or 2, or they have been trading up to 2 or 3 years. But in most cases, in fact, in all these cases, they don't understand the true sequence that each trader has to go through in order to become a successful trader.

They don't understand their true expectation and the reason for this is they tend to trust their brokers in the market, who are telling them what they should expect.

If they trust their broker (retail broker) - A retail broker is not going to give you realistic perspective on what it is going to take to become a Live trader, a successful live trader, because they are making money, when you are losing. You may not be aware of that.

Just understand, that when you are trading in the market, there are certain set of phases that you go through. There are 3 steps, and I'm going to outline these briefly.

The first step is you must have a proper combination of education. Not just any education is going to do to become a successful trader, and certainly not the education that is handed out as free candy by brokers and IB's out there, who all want you to set up a live account as soon as possible.

They want you to set up a live account as soon as possible, because that's how they make money. They are not going to make money as long as you are practising.

Look, before you start trading with any broker, no matter whom the broker is, you got to have the proper education and the proper combination of education, tools and strategies, before you are going to be a successful trader. That's the first step.

Step 2 or the phase 2 is to master the demo account, the practice account, once you've done your education. You should never trade live, unless you have mastered first with a practice account, the strategies which you have been taught.

When I say mastered, the way you measure that mastery is when you have learned to double, triple and quadruple your demo account, then, you can think being prepared for learning how to trade in the 3rd phase.

The 3rd phase is becoming a live trader, with real money. That's a whole lot of quantum leap in your progress to become a successful trader. The 3rd phase requires that you learn to face yourself.

You have not faced yourself at the demo trader. And you have certainly not faced yourself, your real self, when you were getting educated.

When you start trading real money, something happens in the mind of a trader that comes from deeply ruled belief systems that they have developed since they were a child in their mind.

These belief systems will govern fear; they govern greed, competition and revenge. They govern whether you feel over confident or under confident. It will determine whether you hesitate when you shouldn't, or whether you get out of the trade too soon. This is what you are going to face as a live trader and you must learn to disappoint yourself, to the strategy you perfected and mastered them as a trader, when you trade real money. That takes time, it takes patience, and it's a normal process.

A lot of traders want to beat themselves up, because they get so frustrated with themselves, they began to do what they did as a demo trader, now they are trading real, live money.

It's important that you be patient with yourself. It's important that you don't complain to yourself too much when you lose your account because you probably will.

A vast majority of traders do! Take it as grain of salt. Use it as your education. Use it as a way of growing. Because, as you are learning to trade live money, you are going to face all of your weaknesses.

Now, that may sound scary to some people. You will not realize what your weaknesses are. You will feel that you have overcome these weaknesses long ago. I guarantee you, you have not. Until you face yourself in a live trading scenario, and begin to take losses, you won't know what weaknesses still creep and crawl under your skin! Maybe that sounds kind of funny!

Some people think of weaknesses as their enemies. They are not your enemies. Weaknesses help us to be humble. And if you are not humble as a trader, the market will humble you. I guarantee it. It will humble you until you respect it.

When you learn to respect the market, and you learn to see your weaknesses as your stepping stone to become a great trader and a better person, then you start seeing your weaknesses as tools. They are red flags that help you learn what you need to work on next in order to become a successful trader.

Quote of the Day: "Success comes to those who are success conscious."—Sam Awa