It’s important to have in mind that being successful in online trading could mean a lot of different things to different people. In order to decide on what success is you need to think about it in relation to the size of your portfolio. Profits on small accounts may not be large enough to sustain you financially, but if they are constant and easy to obtain, you might consider yourself a good trader.
Online trading is an exciting way for small investors to make money. However, it isn’t that easy to get a foothold in the business because most of the online literature about it is pretty wage and filled with buzzwords.
Protect your capital
It takes a long time to find the capital needed for trading an investing. It mostly comes from savings and anyone who tries to save money knows how difficult it is. This is why you need to protect the capital you’ve gained during the years.
This doesn’t mean that you should take risks when trading. The risk is necessary to make money in this field. However, by managing this risk you could create a firewall around your capital. This can be accomplished by focusing on few trades that will always generate income, while risking with the others.
Surround yourself with successful traders
Following the footsteps of successful traders could go a long way. You can learn the tricks of the trade by discussing it with those who have the experience and emulating their work.
But, you can also go a step further with this, using technology and trading networks. The option of copy trading allows you to directly copy the positions taken by another trader, based on their trade record. This is a popular choice because it allows small and new traders to earn money and develop their portfolio.
Treat trading like a business
Even if online trading is just a way for you to get some additional cash, you should treat it with all the seriousness of a day job. This means that you should evaluate the risks and the expenses needed to get into trading before you spend any money.
You should also treat small accounts with the same seriousness you would a large on. Think of it as you have a million $ account. With this amount a couple of successful trades a month would be considered as big wins – this is how you should see your wins as well.