1. Education: The first step to becoming a successful trader is to educate yourself about the markets and the different strategies and techniques used by traders. This includes learning about technical analysis, fundamental analysis, and risk management.
2. Planning: Once you have a solid understanding of the markets, it is important to develop a trading plan. This includes setting clear goals, identifying your risk tolerance, and determining your entry and exit points.
3. Simulation: Next, you should practice trading in a simulated environment. This allows you to test your strategies and get a feel for the markets without risking real money.
4. Execution: Once you are comfortable with your trading plan, it is time to execute it in the real market. This is where discipline and risk management become critical, as emotions can often cloud judgment.
5. Continual learning: Successful traders never stop learning. They continually monitor their performance and adapt their strategies to changing market conditions. They also stay up-to-date with the latest financial news and market developments.

It’s important to note that becoming a successful trader requires time, patience, discipline, and a lot of hard work. There is no shortcut or easy way. It takes consistent effort and learning to become successful in trading.

• Managing risk: Trading is not just about making money, but also about managing the risk of losing money. This means having a solid risk management strategy in place, such as setting stop-loss orders and adjusting position sizes, to limit potential losses.
• Learning: Trading can be a great way to learn about different markets and products, as well as technical and fundamental analysis. It can also be a valuable learning experience in terms of developing discipline, focus, and risk management skills.
• Gaining experience: Trading can provide valuable experience, which can be useful in other areas of life, such as decision making, analyzing and interpreting information, and managing risk.
• Building a portfolio: Trading can be used to build a diversified portfolio of investments, which can help to mitigate risk and provide a steady stream of income over time.
• Creating a sense of fulfillment: Some people find trading to be a challenging and rewarding hobby that provides a sense of accomplishment and fulfillment.

It’s important to keep in mind that trading is not just about making money, but also about learning, managing risk, and creating a sense of fulfillment. It’s also important to have realistic expectations and not to put all your savings into it.

Trend following is a trading strategy that involves identifying and following the direction of market trends. Some advantages of trend following include:

1. It can be profitable in both rising and falling markets.
2. It can be applied to a variety of markets, including stocks, bonds, commodities, and currencies.
3. It can help to reduce risk by only taking trades in the direction of the trend.
4. It can be automated, which can save time and reduce emotional biases.

However, it’s important to note that no trading strategy is without its drawbacks, and trend following is no exception. Some disadvantages include:

1. It can generate significant losses during periods of market consolidation or range-bound markets.
2. It may result in missed opportunities if the trend changes direction quickly.
3. It may cause over-trading and high transaction costs.

It’s important to understand the advantages and disadvantages of any trading strategy before implementing it.

Trading can be divided into two broad categories: gambling and elite performance.

Gambling in trading refers to a style of trading that is based on luck and chance, rather than sound analysis and strategy. These traders typically have little or no understanding of the markets they are trading in and make decisions based on gut feelings or tips from others. They may also engage in high-risk strategies such as day trading or margin trading.

On the other hand, elite performers in trading refer to traders who have a deep understanding of the markets they are trading in and use sound analysis and strategy to make informed decisions. They have a well-defined risk management plan and a clear understanding of the potential rewards and risks of each trade. They also tend to have a long-term perspective and a focus on capital preservation.

In general, elite performers tend to have a better chance of success in the long run compared to gamblers as they have a clear understanding of the markets they are trading in and have a well-defined strategy, while gamblers tend to make trades based on gut feelings and lack of understanding of the markets, which increases their risk of losing money.