The truth is that everywhere I read people saying that trading does not work and that they prefer to get into investments in the medium and long term, and play it safe, which is not bad, but they are partly wrong.
Trading DOES work, and I will explain why. Basically most people fail because they buy shitty courses from shitty traders who don't know shit. And what is the problem with this? That you are basically learning from the wrong information, from the point of view of useless people, and when you go to the market you lose most of the time. I have even seen people with YEARS of study who do not know how to read the market structure well, let alone its terrible performance. They focus on trend lines, supports and resistances, candlestick patterns and all that rubbish that they teach you on YouTube, which is not bad, but if you don't have an understanding of structure, cycles, manipulation you are not going to get anywhere.
And what about this? That the guy who studied in those trashy courses, loses, gets frustrated and you see him everywhere criticizing trading. In addition to having a nefarious strategy based on hundreds of indicators and chart figures, it also has a poor risk management, which means failure.
Most of the traders that you see on YouTube the money they generate comes from courses and not from the markets, do not be fooled. They are very good at showing you past results on tradingview and uploading photos in miami but trading they are a disaster. Or they also show you some profit they had and upload it to YouTube, Instagram and wherever, but they don't show you the complete track record, like that for anyone. All this that I mentioned they do to sell more and that people have false illusions.
What is my recommendation?
Start looking for a good course, with the right information. Courses focus on institutional trading, liquidity, manipulation and everything you need to know to have a good understanding of the market at a structural level, etc.
Already telling you all this saves you years of wasted time, I hope you take advantage.
What is the next important aspect? Risk management, if you have this and a good strategy you already have profitability.
Why? Well, I always recommend trading with a risk-reward ratio of 1: 3. What does this mean? That I risk 1 to win 3, and in this way I can afford to have losses without being affected.
Assuming that you risk 2% per trade, to win 6% (1: 3), you would need 30% effectiveness to win.
If you lose 7 trades, and win 3, with a 2% risk per trade you would be winning a total of 4%. If you lose 5 trades and win 5, with 2% you would be earning 20%. And so on. If you raise the risk to 5%, I won't even tell you.
And yes, surely some monkeys after reading this will want to quote Warren Buffet saying that he earns 30% a year. And what is the difference? Warren buffet is a multimillionaire, you are someone with a 500usd account. 5% of 80 billion is 4 billion. 5% of 500 is 25usd. If you can afford to lose money, he can't. Furthermore, he is an investor, not a trader.
By having small accounts from 100 to 10k you can afford to operate with more risk, and thus obtain more monthly profitability. The profitability that you have will depend on the risk that you are willing to assume.
Don't be surprised if you see people generating 200% annually or monthly, or even weekly. Why? Because they are probably using a very high risk and if they have a bad week they shit fire. It is possible, as much as the thermos heads tell you no, if it is possible to get 10%, 20% and 30% per month, what you need is a good risk management and a profitable strategy. Now, as I said, it all depends on the risk you are willing to assume, if you use a very low risk of 0.5% per operation and generate 5% of 2k, it is 100usd, with that you do nothing, but in large accounts, of 100k, 5% is 5 thousand usd, enough to live quietly and shit with laughter.
Now, assuming that you have already read all the books and courses and did a lot of backtesting, and in demo you have good effectiveness, but you don't have the balls to operate in real, what do you do?
Easy, you do a funding test in a firm, that way if you lose you don't burn so much, but if you win you have a 25k account in your possession. What is the requirement of these tests? 4% in six months, that is, you have six months to achieve that goal. Six months is too long, so if you really are profitable you will get it.
Trading is not that complicated, people get complicated and frustrated. Always remember to have a good risk-benefit ratio and losses will no longer bother you so much.
