This is a Guest Post by Chrissy Williams.
4 Trading Steps That Will Change Your View of Financial Freedom
When it comes to the term “financial freedom,” this can have all sorts of meanings to different people. Most individuals look at it as more than having access to money but also the freedom to spend more time doing other hobbies such as travel or being with family. While having more time and money is the ultimate dream for many, not every entrepreneur is willing to make the effort.
In fact,80% of traders quit within the first 24 months, according to the Journal of Finance. Therefore, if you’ve decided to start trading, here are 4 trading steps that will change your view of financial freedom.
Follow Consistency Through Profitable Planning
To become a successful trader, you must stay consistent on planning to be profitable. Consider your trading path on a daily and weekly basis. This will define your goals on how you will to stick to trading and the results that come with it. You will have to accept what the market gives you, including the risks. The main goal is that you have a plan that will help you stay consistent with your trading results and goals.
Build the Account
Build your account from the bottom up. This means you will start with zero profits as you climb the learning curb. Once you are able to maintain the account at even, you’re done paying for the experience and can move toward consistent returns. This will help you establish and grow your account through proper planning and consistency. You won’t have to rush through the building process as it may add up faster than you think.
Becoming A Smart Investor
Learning through trial and error, you will learn when and how to execute good trading entries and exits. This will help you stay in the same mindset and moving forward by growing your investments and increase your edge.
Using a cash-back credit card for purchases will also help you earn reward points that transfer into different accounts within minutes.
Put Yourself On A Payroll
The biggest step that traders often forget is to pay for your own service. Whether you plan to take out $400 a week or a month, you will stay motivated and appreciate the fruits of your time and labor. Once you see the profit transfer from your trading account to your bank account, the income will begin to materialize and push you to keep trading for an additional source of income.
However, this doesn’t mean that you should take the profits from all the funds from your account. It is important to prepare yourself for the event of a losing streak when you are not able to be profitable for a period of time.
Being a trader is often compared to the life of an entrepreneur and business ownership. You will have your share of difficulties, just like any other business. However, the rewards for hard work and dedication will show with your eventual financial freedom. The more control you have over your finances, the more freedom you will achieve in the long run.