Forex trader, Nikos Mermigas of Spartan Forex Trader Academy distills the wisdom and experience he gained after 10 years of trading into 21 lessons.
My name is Nikos and I have been trading the financial markets since 1999. That is 13 years now. I started with stocks and lost about 90% of my invested money within three years. In 2002, I started with forex trading. It took me about another two to three years before I started to make consistent profits. I learned the hard way and I still made a lot of mistakes, but at least I learned from these mistakes and my account was growing slowly but steadily. In order to help you guys with your personal trading I will share the 21 most important lessons I have learned that made me stay on the “bright” side.
Lesson 1: Do Your Research First
I started with trading in 1999 because suddenly everybody here seemed to make millions with stocks. But as I said, it only seemed that way. Most stories were pure fantasy and good marketing, it was not real. Of course some people made a lot of money, but only the guys that knew the game. Only real traders made profits, like always. I did not know that of course. I just listened to some friends, went to a broker, and spent a lot of money on some no name stocks. Of course I lost almost everything and that just because I didn’t have a clue about basic money management and how financial markets work. So, do your research before you invest even a penny and that brings us to…
Lesson 2: Never Listen to Amateurs
When I lost my hard earned money almost 13 years ago, I felt sick. Not only because I lost a lot of cash, but also because I listened to people that never really made money with trading. They were very good with words and had a million ideas, but I never actually saw them trade. When I asked a so called “friend” to show me some results of his trading account, he always found a nice excuse to avoid that. In time I found out that he had lost everything in stocks and in the casinos. With other words, I was consulting a gambler. That is just an example and what I am trying to say is; if you want to succeed in trading, only take advice and listen to people that actually know their business.
Lesson 3: Find Out What You Really Want to Do
As I mentioned before, some people start with trading just because they think it is easy money. Most newbies usually quit when they start to lose. Now some people insist, but why? Is it the ego, or is it because they don’t want to accept the loss. Is it the thrill or an adrenaline rush? Is it just the money or maybe the fact that a trader can work from home? It could also be love at first sight and now you have to work on the relationship…lol. I think it is a bit of all those. After a while playing around on a demo account and testing out strategies you might find in the Internet (some are good but most are useless in the long run) you will gain some experience and things become clearer. That is the time when you need to think about your choices. Become a bit serious and pick a product that suits your personality and just start. It could be forex, stocks, futures, metals, or whatever you think is best for you right now. You can change or add products later on.
NEXT PAGE: The Starting Point