Trading is a business. It's a profession. And it takes time to learn how to trade.
Anybody who tells you differently, is a liar. Sorry for being harsh, but it's the truth.
You can't just buy "the magic system" that automatically puts money into your bank account overnight. It doesn't exist!
Realistically, it can take you several weeks and and often even months before you have your first profitable trade. And in the beginning you might even lose some money, no matter how well you prepare. Because when trading, there's always the risk of loss!
But here's an approach that can increase your chances of making it as a trader:
Step 1: Setting Realistic Goals
Here's the problem:
Many aspiring traders have unrealistic goals. They start with a $5,000 account and expect to make $5,000 in their first month of trading. No wonder many traders fail.
Focus on small, but consistent profits!
Trading is a function of risk and reward. The more you risk, the higher the profit potential. Or in "traders language": The larger the stop loss, the higher you can set your profit target.
Let me give you an example: A good reward/risk ratio is 1.5 to 1. This means that you are willing to risk $100 trying to make $150. If you start with a $5,000 account, your stop loss of $100 would be exactly 2% of your account. I'm sure you already heard about the "2% risk rule." It's widely used and many trading experts recommend it.
Now let's say you are right every other trade, i.e. your trading system has a winning percentage of 50%. This means that in the long run you can expect as many winning trades as losing trade.
For our example, let's say you place 10 trades - 5 of them are winning trades and 5 of them are losing trades.
So you would make $750 on your winning trades (5 * $150), and lose $500 on your losing trades (5* $100). Your gross profit after 10 trades would be $250. You now need to deduct your commissions, which should be around $50 - $70 for 10 trades, depending on your broker and the markets you trade.
Therefore your net profit after 10 trades would be around $180-$200.
Now the question is: How many trading signals does your system produce?
If you get 10 trading signals per week, then you can expect a weekly return of $180-$200 on a $5,000 account.
Which is a phenomenal result!
Think about it: With a simple trading strategy like this you could expect $720 - $800 per month on a $5,000 account. That's a whopping 14% - 16%! Per month!
Now, keep in mind that there's also the possibility of LOSING money.
So let's talk about losses:
If you had 10 LOSING TRADES in a row, then you would lose $1,000, since you are risking $100 per trade. That's 20% of your account. Ouch!
But honestly: If you manage to have 10 losing trades in a row, you should stop trading immediately. Because the chances of getting 10 losses in a row when trading a strategy with an expected winning percentage of 50%, is less than 0.1% (!!!)