A very important part of a trading career is gaining knowledge and utilizing them at the right moment. There are thousands of traders who have traded for more than decades. It all started many years ago but still not enough and efficient knowledge has not been achieved. These people still lack basic ideas and they don’t understand how the newcomers are speeding up in their careers. Gaining knowledge and utilizing the skills are two different things. Many people make mistakes by thinking these two as the two sides of the same coin but they are not. This article will help to clear out some of the confusions that have spread among the traders for decades. You can be gaining experience even by watching the industry but utilizing the skills that have come over through the experience is different. Today, we will try to help out the people who cannot understand the concepts.
Learning from past trades
Learning from past trades is the easiest way to develop yourself as a full-time Forex trader. Many Singaporean traders have mastered the art of trading within a short period of time just by learning from their past trades. You don’t have to be a genius to identify your trading mistakes. Just maintain a trading journal and do some assessment during the weekend.
Becoming an active member in the social trading network
Being new to the exchange traded funds community, it’s normal to make mistakes. The majority of the traders find it really hard to keep themselves updated with the latest market news. If you do some research and join a professional social trading network things will become easier for you.
Gaining experience can be involuntary
This is the most vital difference between these two ideas. People can watch an event which is happening frequently and can learn to predict the future of it. It is a process of accumulating knowledge that works as an experience and can be learned, even if it’s involuntarily. It is voluntary when they express their expectation and take part in the process to understand how the system works. If people do not invest in Forex but they observe the daily volatility and the market analyses of the professionals, they can gather memory. The people gain experience even in their personal life which can be good or bad. We all want to keep only the good experiences but we cannot help but have some bad experiences along the way.
Utilizing skills need planning and preparation
Though a person can gain experience about the trends and the volatility, utilization of the skills needs to be planned from the beginning. When the professionals make money, they simply don’t make some great strategies. Thousands of hours have been spent on perfecting the plan which was designed at the beginning. It went through many processes and after using the experience and developing the strategy, it is possible to make the skills suitable for making profits. Never think luck will favor the brave because the industry is all about practice and patience.
Why these two ideas are often mixed up?
It has been found that there is a common misconception among the traders about the experience and skills. When people gain experience, the skills will get better without practice. It is perhaps why we only found traders who have achieved success after a long time. There are plenty of people who can achieve success in the short-term through their discipline and developing the strategy and by following the plan. A perfect trade seldom happens and it needs planning and a perfect strategy. Experience is worthless if it is not used to develop the skills. A car is useless with a super powerful engine if the tires are flat and vice versa. If the experience needs to be reflected in the performance, you need practice.
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Author : Julia Gomes |
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