How Long Does It Take to Learn Trading?

Trading cryptocurrencies and stocks is considered one of the exciting and potentially rewarding opportunities in the world of digital finance. It has gained significant attention from individuals seeking to increase their capital and achieve independent income. However, it is important to note that the majority of traders incur losses when participating in financial markets. In this case, how long does it take to learn trading?⏳ The answer is that it takes time and effort. You cannot become a successful trader overnight. It takes knowledge and experience.

However, a common question in the minds of beginners and those interested in trading is: How long does it take to learn trading?” Trading, beyond being a financial activity, is an adventure that demands skills, knowledge, focus, and effort.

In this article πŸ“, Crypto Hovel will examine the factors influencing the time required to become a trader. This includes soft skills, market understanding 🌐, technical analysis πŸ”, and the importance of risk management 🎯, along with considerations for individuals to quickly and successfully enter the dynamic world of trading and pursue their goals.

How long does it take to learn trading?

The journey to becoming a trader and learning trading is highly variable and dependent on the individual. The time required is influenced by various factors such as experience, effort, practice, and the commitment to learning.

Below, we will discuss some key factors that may affect the time needed to learn trading and become a professional trader:

Self-awareness

Self-awareness

Self-awareness in trading is a crucial and fundamental stage on the path to becoming a professional trader. This journey, which can be lengthy and complex, relies entirely on deep self-awareness and understanding. Terms like Fear of Missing Out (FOMO) and Fear, Uncertainty, and Doubt (FUD) must be familiar to you. In summary, it should be noted that greed, fear, overtrading, patience, and emotional control are five factors that determine a trader’s success or failure.

To elaborate further, these five factors distinguish between an analyst and a trader. Many individuals excel as financial market analysts, but when it comes to executing and entering the market with their capital, they become entirely different individuals who may not adhere even to their basic principles.

πŸ“ŒExample 1: Suppose you have mastery over technical analysis and have even designed a personalized trading setup. When that setup activates on a chart, such as Bitcoin, you open a trading position. If the market moves contrary to your prediction and approaches your stop-loss level, you might stick to your initial analysis without considering new conditions, leading to potential losses.

In most cases, this behavior results in the loss of a significant portion of your capital. Imagine that in this example, you do not trigger your stop-loss and, instead, open a new position in the opposite direction, not driven by emotions but based on a well-analyzed decision. This could help recover your losses and even lead to profitability.

πŸ“ŒExample 2: Imagine you have bought an asset like Ethereum, and its price is rising. You’ve set a take-profit level based on your trading style. As the price approaches your take-profit point, and positive news about Ethereum circulates, you might stick to your initial analysis, expecting further price increases. Unaware that the market could revert below your take-profit level, you wait for another price surge, risking the loss of all your profits.

β˜‘οΈConclusion: There are numerous examples highlighting the importance of developing a trading personality. In both examples above, individuals were proficient in analytical aspects, yet they exited the market at a loss. The difference between a trader and an analyst lies in psychological matters. Therefore, consider how these five factors manifest in you. Reflect on your experiences in critical moments of life: Were you able to control your emotions, such as fear? After becoming aware of your mental state and improving it, you can confidently continue your trading learning journey. Ensure to seek guidance from experienced professionals on this path, a process that may take at least a month to outline your strengths and weaknesses.

Familiarity with Different Financial Markets

In the financial world, each market has its own characteristics and specific features that require a precise understanding for success. For instance, if you decide to enter the cryptocurrency market, it’s essential to know which platforms transactions occur on and from which sites you can obtain real-time and accurate charts for these cryptocurrencies.

The behavior and price reaction of each token and currency to news and events in markets differ. This holds true in technical analysis as well. For example, the head and shoulders pattern in lower time frames typically continues in the forex markets upon completion, but in cryptocurrency markets, this scenario is accompanied by a high error percentage, and often, after the pattern completes, the market changes direction.

Therefore, it’s necessary to thoroughly understand platforms and tools such as wallets or exchanges required before entering the market. Additionally, in terms of technical analysis, test your analysis style in that market over a period of time, measure its success rate, and modify it if necessary. Moreover, identifying market drivers, finding its correlation with other markets, and observing the behavior of market whales can contribute to progress and profitability.

β˜‘οΈConclusion: Since this task involves research, it is somewhat time-consuming. However, by searching in news agencies specialized in this field and identifying their focus points, you can save time during this period. Seeking advice from an experienced individual in this domain will significantly assist you. On average, this section requires a minimum of one month of continuous work.

Choosing a Trading Style

Trading Style

At this stage of your journey as a novice in the trading world, it’s essential to recognize your strengths and weaknesses in sensitive situations and your behavior towards the chosen market. In this section, considering these results, you must choose your trading style, with one of the most critical aspects being the selection of the trading time frame. For example, if you are an impatient person, you can engage in scalping trades in lower time frames.

Now, if you have high stress levels in addition to impatience, you need to add another filter to your trading style. For instance, let the market enter a range, reduce trading volume, and only execute swing trades during that time to avoid witnessing powerful price movements.

🌟Remember, the key to the success of top traders worldwide is not trading most of the time and entering safer positions.

Additionally, you must choose the analytical style you want to use. For example, many people prefer price action over classical technical analysis. Still, note that in this case, you need to monitor the market continuously.

β˜‘οΈConclusion: If you have correctly completed the previous two stages and your analytical knowledge is sufficient, you probably need about two weeks to understand which time frame and analytical style align with your personality. Familiarize yourself with different styles and continuously monitor and test the market.

Learning the Necessary Tools for Trading

To increase the success rate of your trades, it is essential to have sufficient mastery over technical analysis, Ichimoku, fundamental analysis, and news. Each aspect of this square requires one or more platforms for data analysis, and you need to become proficient in the tools of those platforms. For example, if you have chosen the TradingView platform for technical analysis, you should learn how to draw corrective Fibonacci levels on it or become proficient in using the relevant indicators for checking market conditions in Ichimoku analysis. In this stage, you also need to upgrade your technical analysis knowledge.

β˜‘οΈConclusion: This stage is closely related to the choice of your trading strategy (the next stage). However, mastering the indices, indicators, and parameters you need will take a minimum of one to two months. The crucial point is the level of your technical knowledge. If you lack sufficient familiarity or experience in this area, you will need at least another two months to learn the specific branch of technical analysis you are interested in.

Developing a Trading Strategy

Trading Strategy

This stage is essentially the outcome of completing all the previous steps. Choosing a trading strategy is crucial for achieving your trading goals, so it requires careful consideration. Afterward, it is recommended to enter the market with a demo account or a small amount of capital and test different strategies. Remember that your strategy should be personalized, and do not use the strategy of even a successful trader without modification. After testing and trial and error of your strategies, choose the best results. It’s better to have separate strategies for volatile markets with sharp price movements and note them in your journal.

You can use the strategy section of the TradingView platform to save your strategies. Also, have your personal plan for situations where the price approaches your stop loss or take profit levels, and set red lines for yourself.

Additionally, in your trading setup, define the minimum risk-to-reward ratio for entering a position. If the attractiveness of your position is below this threshold, refrain from entering the trade.

In this section, capital management must also be included. For example, note how much of your capital you allocate to high-risk assets and how much to low-risk ones. Always keep a portion of your capital in stable coins or cash so that you can take advantage of attractive prices when they occur (usually after market declines).

Failing to follow this principle might lead to engaging all your capital prematurely and potentially incurring losses, making it challenging to lower your average buying price. This practice is also crucial in ladder-buying situations.

β˜‘οΈConclusion: Since this stage is everything you present yourself within the market, it’s better to spend enough time on each part of it. Designing personalized trading strategies requires a minimum of one month, and the trial and error of these strategies and selecting the best ones will take another two months.

Conclusion

The question of How long does it take to learn trading is a frequently asked one by individuals looking to earn income through trading, either as a side job or as their primary occupation. In this article, we attempted to provide a comprehensive, realistic, and experience-based answer to this question. We also offered an estimate of the time required to learn trading. To be profitable and successful in trading, you need to invest time, learn, trade, taste both profits and losses, and, by learning from mistakes, evolve into a professional and successful trader.

coment and share

In your opinion, How long does it take to learn trading? πŸ“ˆπŸ“‰ If you have experience in the field of trading, which can assist beginners interested in learning to trade, share your opinions with us. Also, share this article with friends who want to learn trading. πŸ“£

FAQ

FAQ
How can we become traders?

To become a trader, knowledge and experience are the two essential components. In this path, you need to familiarize yourself with financial markets, become acquainted with the tools necessary for trading, and find your suitable style and strategy. Finally, you must gain experience in different market conditions and address your weaknesses.

How long does it take to learn trading?

The answer to this question depends on various factors and varies from person to person. Certainly, you need to invest a considerable amount of time to learn and gain experience. Individuals’ background knowledge of financial markets, trading tools, and self-awareness can significantly shorten this path.

Is learning trading equally time-consuming for everyone?

No, the time required to learn trading varies for each individual. Experiences, financial background, and educational background can influence the speed of individuals’ learning.

How can I accelerate the learning of trading?

Choosing credible resources, participating in trading communities, and consistent practice with a demo account can expedite the learning process.

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