We have all heard numerous success stories about how people have become super rich over a short period of time with trading or at least how some people are making more than what they do on their day job from trading even after only spending a fraction of time on it.
But when we try our hand at it, we do not see any sort of magic happening that makes us rich. And we are therefore left to wonder whether we are not doing something right or maybe all of those success stories are just a myth. In reality, it is a bit of both.
When it comes to success stories, always make sure you take them with a grain of salt. While these stories are not necessarily outright lies, there is often some context missing. For example, when you read a headline that says someone becomes a millionaire overnight after investing in a certain coin, this may as well be true. But when you move past the headline, you will find out that this person has invested a few hundred thousand in the first place and that tripled and turned him into a millionaire. You could have been in that person’s position but if you had only invested 100 dollars in the same coin, you would come with the same percentage of profit and now have 300 dollars but that hardly qualifies as a success story.
One you have a handle on this perception, you will be able to think clearly and focus on improving your own best automated trading platform uk because this is the second aspect. While you might not be doing something wrong, there is certainly much more you can do to improve your portfolio. Here are a few things that you can consider in this regard.
What is your strategy?
We are assuming that if you have been trading for a while now, you must have a trading strategy that you follow. If that assumption is incorrect and you make trades randomly, this is a bigger problem that needs to be addressed more urgently. No doubt that you can make profits from a random trade, but you can also sustain heavy losses, especially if you do not have a system. So, make sure you come up with a system to manage those risk factors.
If you are already functioning on a strategy, do not forget that your strategy might need some polishing and refinement. If you are too cautious about your risk appetite and pull out of every trade even at the slightest loss, then you must acknowledge that you are restricting your potential for making profits at the same time. If you increase your risk appetite, the potential for profits increases but you will also open yourself up to the possibility of bigger losses.
We cannot prescribe you a particular strategy because this has to be bespoke to every person and you have to figure this out yourself. However, striking a balance between your potential for profit and risk appetite is what you should be aiming towards. Another helpful tip is to make sure that you are aware of the actual value of the money that you have invested. If you are playing with the money that you are willing to lose, you can be more liberal with your trades but if the money amounts to a sum that you may need in the near future, it is best to be a little more conservative with your approach.
Do You Have the Best Platform?
The platform you are using for trading can make a huge impact on your portfolio. This does not just mean that you will have to look for the best trading fee but also about the kind of service that they are offering. Most reliable platforms have now started offering bot trading, which means that their powerful algorithms will do the trading for you once you have set the necessary parameters. This means that your trades will be happening in the background while you continue with your routine life. It would be prudent to put a small portion of your portfolio in these bots and then monitor results for a while before you trust them with a larger sum.
Conclusion
So yes, the success stories might be misleading but also, there is much you can do to improve your own trading. It is therefore highly recommended that instead of getting too carried away with the stories of other people, you should focus on improving your own portfolio because that is the only thing that will benefit you.